"Inflation in the Philippines" surged to its highest level in three years, reaching 7.2%, driven by rising oil prices following the Middle East crisis, which pressured transportation and food costs.
On May 5, 2569 at 08.26:XNUMX a.m., Bloomberg News reported that Inflation in the Philippines accelerated to its highest level in three years, exceeding expectations set by the central bank and analysts. This reflects the economic pressure from the war in the Middle East, which is driving up energy prices.
The Philippine Statistics Authority reported on Tuesday that the consumer price index (CPI) for April rose 7.2% year-on-year, exceeding the Bloomberg survey's median forecast of 5.5% and reaching its highest level since March 2023. Meanwhile, the Philippine peso weakened by about 0.3% against the US dollar in early trading.
The main drivers of inflation are transportation costs, which surged by 21%, as well as housing, water, electricity, gas, and other fuels, which increased by 8%. Food and non-alcoholic beverage prices rose by 6%, particularly rice and fish. The Philippines, which imports more than 90% of its oil from the Middle East, is facing pressure from the US-Iran conflict, which is impacting the energy supply chain and driving up the cost of crude oil and fertilizers. Although the government has implemented some support measures, the Philippine central bank previously warned that April inflation could climb to a range of 5.6%-6.4%.
The data underscores the challenges facing the Philippine central bank, which recently raised its policy interest rate in April for the first time in over two years to curb price pressures. The bank warned that continued high oil prices could expand inflation risks and push inflation expectations beyond target levels, while affirming it would closely monitor the situation and implement policy based on incoming economic data.
The administration of President Ferdinand Marcos Jr. has implemented measures to subsidize fuel for public transport drivers to mitigate the impact of the energy price crisis, and plans to revise its 2569 economic forecast amid pressures from oil prices.
Meanwhile, Economic Planning Minister Arsenio Balisacan stated that the government is accelerating targeted measures to control price pressures, particularly in the food, energy, and transportation sectors. He emphasized that the main priority is maintaining energy stability, keeping prices at appropriate levels, and supporting all sectors amidst domestic and international challenges.
refer : bloomberg.com
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