Live Updates > Live Update Details
2026-04-07 17:26:20
[Philippine Inflation Surges Above Threat, Oil Price Hike Forces Central Bank to Take Precautions] ⑴ The Philippines' annual inflation rate accelerated to 4.1% in March, significantly higher than February's 2.4% and market expectations of 3.7%, exceeding the central bank's target range of 2% to 4% and reaching its highest level since July 2024. ⑵ On a month-on-month basis, the inflation rate reached 1.4% in March, the highest since January 2023, mainly driven by soaring transportation costs stemming from a surge in global energy prices amid tensions in the Middle East. ⑶ Diesel prices surged 59.5% year-on-year, and gasoline prices jumped 27.3%, both the fastest increases since September 2022. In contrast, diesel and gasoline prices fell by 1.3% and 5.7% respectively in February. The transportation price index climbed 9.9% year-on-year, reaching a new high since January 2023. (4) The Philippines is highly dependent on Middle Eastern oil and is extremely vulnerable to supply shocks and price fluctuations during geopolitical conflicts. Core inflation, excluding food and energy, rose from 2.9% in February to 3.2%, indicating the initial signs of a second round of transmission effects. (5) The Philippine central bank stated on Tuesday that it will review data at its April 23 policy meeting to assess the necessity of action. This follows the central bank's unexpected non-cyclical meeting on March 26, where it kept the key interest rate unchanged at 4.25% and stated that policy would focus on the second round of effects of global oil price shocks.
