The Philippine government will take the necessary steps to keep inflation manageable and address the volatility of oil prices amid the ongoing conflict in the Middle East, said the Department of Economy, Planning, and Development (DEPDev).
The Philippine Statistics Authority (PSA) reported today (March 5) that the country’s headline inflation in February increased to 2.4 percent from 2.0 percent in January. This brings the year-to-date average inflation to 2.2 percent, which is still within the government’s 2 to 4 percent inflation target for 2026 and 2027.
Inflation in February was primarily driven by faster food inflation (1.6% from 0.7%) and non-food items (2.8% from 2.5%). Food inflation was driven by faster fish price increases (7.7% from 7.3%) amid shellfish and crustacean bans due to red tide alerts.
Furthermore, non-food inflation picked up, driven by higher inflation in housing rentals (3.0% from 2.8%) and electricity (6.6% from 6.5%).
“Overall price conditions remain stable. However, we are mindful of recent geopolitical developments, which we are closely monitoring, along with domestic supply conditions of key commodities,” said DEPDev Secretary Arsenio M. Balisacan.
Thus, Balisacan emphasized that the government will implement mitigating measures to address upside inflation pressures arising from the conflict in the Middle East. These measures include the possible lifting of excise taxes on petroleum products if global oil prices breach $80 per barrel.
“Further, the government will implement measures to reduce fuel consumption, first by government offices, and we encourage the private sector to do the same. These measures include the use of shuttle buses, encouraging car-pooling, as well as implementing flexible work arrangements such as work-from-home and compressed workweeks,” Balisacan said.
The government will implement long-term strategies to reduce demand for imported oil by incentivizing renewable energy and alternative fuels, promoting active transport, and strengthening energy conservation programs.
“We are ready to deploy timely and targeted interventions should external shocks intensify. Our priority is to protect vulnerable households, support affected industries, and sustain the country’s growth momentum amid global uncertainties,” Balisacan said.
