The government remains steadfast in its commitment to maintaining macroeconomic stability and protecting Filipino consumers, according to the Department of Economy, Planning, and Development (DEPDev).
Following the release of February inflation figures, the government is prepared to deploy targeted interventions to mitigate the impact of Middle East tensions and fluctuating global energy prices.
The Philippine Statistics Authority (PSA) that headline inflation for February rose to 2.4%, up from 2.0% in January. Despite the uptick, the year-to-date average of 2.2% remains well within the government’s target range of 2.0% to 4.0% for 2026 and 2027.
The February increase was primarily influenced by:
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Food Inflation: Rose to 1.6% (from 0.7%), largely due to a 7.7% hike in fish prices triggered by red tide alerts affecting shellfish and crustacean supplies.
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Non-Food Inflation: Climbed to 2.8% (from 2.5%), driven by adjustments in housing rentals (3.0%) and electricity rates (6.6%).
While Secretary Arsenio M. Balisacan noted that overall price conditions remain stable, he emphasized a “vigilant and proactive” stance regarding the ongoing conflict in the Middle East.
“We are closely monitoring geopolitical developments and domestic supply chains,” said Secretary Balisacan. “Our priority is to ensure that external shocks do not derail our recovery or place an undue burden on Filipino households.”
To address potential spikes in oil prices, the government is prepared to implement the following mitigating measures:
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Fiscal Relief: The possible suspension of excise taxes on petroleum products should global crude prices breach the $80 per barrel threshold.
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Consumption Reduction: A mandatory fuel conservation program for government offices, with a strong recommendation for the private sector to follow suit.
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Flexible Work Arrangements: Promotion of work-from-home (WFH) schemes, compressed workweeks, and car-pooling to lower transport demand.
Beyond immediate relief, DEPDev is accelerating long-term strategies to decouple the Philippine economy from imported oil volatility. This includes incentivizing the transition to renewable energy, promoting active transport (such as cycling infrastructure), and strengthening national energy conservation programs.
“The government is ready to deploy timely and targeted interventions should external shocks intensify,” Balisacan added. “By supporting affected industries and protecting vulnerable sectors, we will sustain the country’s growth momentum despite global uncertainties.”
