The Philippine government is preparing a set of measures to manage inflation as global oil prices rise due to the ongoing conflict in the Middle East, economic managers said.
Arsenio Balisacan of the Department of Economy Planning and Development Secretary said authorities are closely monitoring geopolitical developments and their potential impact on domestic prices.
“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,” Balisacan said.
Data from the Philippine Statistics Authority showed that headline inflation rose to 2.4 percent in February from 2 percent in January.
Despite the increase, year-to-date inflation averaged 2.2 percent, remaining within the government’s target range of 2 percent to 4 percent for 2026 and 2027.
National Statistician Dennis Mapa said the uptick in inflation was mainly driven by faster price increases in food and non-alcoholic beverages.
Food inflation accelerated to 1.6 percent in February from 0.7 percent the previous month, partly due to a slower decline in rice prices and higher fish prices following shellfish bans linked to red tide alerts.
Non-food inflation also rose, driven by increases in housing rental rates and electricity costs.
The Bangko Sentral ng Pilipinas said the inflation outlook remains manageable, although projections for 2026 were slightly raised to 3.6 percent due to supply-side pressures.
“The Monetary Board will remain vigilant and guided by incoming data, specifically on inflation,” the central bank said.
To address potential price pressures, Balisacan said the government is studying the possible suspension of excise taxes on petroleum products if global oil prices exceed $80 per barrel.
The government is also encouraging fuel conservation measures such as the use of shuttle services, carpooling, flexible work arrangements, and compressed workweeks.
Balisacan added that longer-term strategies include promoting renewable energy, supporting alternative fuels, encouraging active transport, and strengthening energy conservation programs.
“We are ready to deploy timely and targeted interventions should external shocks intensify,” he said.