US EditionPhilippine Central Bank Warns of Oil Spike 'Spillover Effects' as Inflation Breaches Target
Diesel and gasoline prices drove the fastest inflation reading since July 2024, and the central bank said it may need to act if pressures persist.
- The Philippine Statistics Authority reported on Tuesday that annual inflation in the Philippines accelerated to 4.1% in March, the fastest rate since July 2024, driven by surging fuel and transport costs.
- Escalating conflict in the Middle East prompted Iran to close the Strait of Hormuz, creating oil supply shocks for the Philippines, which imports 98% of its oil from the region.
- Diesel inflation soared 59.5% while gasoline prices jumped 27.3%, pushing transport costs to a 37-month high of 9.9% as global energy prices spiked.
- The Department of Economy, Planning, and Development launched the UPLIFT Committee to deliver 165.6 million liters of diesel throughout April, while the Bangko Sentral ng Pilipinas maintained rates at 4.25%.
- Bangko Sentral ng Pilipinas officials stated the central bank will remain watchful of incoming data "to assess the need for action" when it meets April 23, while AMRO projects inflation cooling to 3.6% next year.
10 Articles
10 Articles
Fuel price surge pushes Philippine inflation above central bank target
MANILA, April 7 : The Philippines’ annual inflation rate accelerated more than expected in March, breaching the central bank’s 2 per cent to 4 per cent target range, driven largely by a sharp increase in fuel prices amid escalating tensions in the Middle East.Headline inflation rose to 4.1 per cent in Mar
Oil shock drives Philippine inflation to 20-month high of 4.1% in March 2026
MANILA, Philippines – Inflation in the Philippines nearly doubled to 4.1% in March as the Middle East crisis pushed fuel and transport costs higher, the Philippine Statistics Authority reported on Tuesday, April 7. This brings the average inflation print for the year at 2.8%, still within the government’s target range of 2% to 4%. However, March’s inflation rate is the fastest since July 2024 — a 20-month high. According to National Statistician…
BSP may hike if inflation breaches 4%, says AMRO - BusinessWorld Online
By Katherine K. Chan, Reporter THE Bangko Sentral ng Pilipinas’ (BSP) easing cycle has likely ended, with rate hikes now on the table as energy shocks amid the Middle East war could stoke inflation this year, the ASEAN+3 Macroeconomic Research Office (AMRO) said. In its latest Regional Economic Outlook for 2026, AMRO said it sees the country’s consumer price index (CPI) picking up to 3.9% this year if oil prices hold around $80-$90 per barrel. T…
Many Filipinos are now feeling the effects of rising prices after the country's inflation rate rebounded in March. In a press conference on Tuesday, April 7, the Philippine Statistics Authority (PSA) reported that Philippine inflation hit 4.1% from 2.4% in February of the same year. It also exceeded the target range of 2 to 4% of the Bangko Sentral ng Pilipinas. The main driver of the increase was the impact of the conflict in the Middle East, w…
Philippines Faces Economic Strain as Inflation Hits 4.1% Amid Global Turmoil
Spread the loveThe economic landscape in the Philippines has taken a dramatic turn as inflation surged to 4.1% in March 2026, exceeding the central bank’s target and signaling significant financial strain for households across the nation. This uptick in inflation is largely attributed to early shocks stemming from the ongoing conflict in Iran and a notable rise in fuel prices. Impact of the Iran Conflict on Local Inflation The war in Iran has sen
Coverage Details
Bias Distribution
- 60% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
