Inflation quickens to 2.4 percent in February

MANILA, March 7 ------ Philippine inflation quickened by 2.4 percent in February from 2 percent in January, according to data from the Philippine Statistics Authority.

The state statistics bureau said that it is also seeing higher inflation in the coming months due to the war in the Middle East. National Statistician Claire Dennis Mapa said the major contributors for the February inflation are the housing, water, electricity, gas, and other fuels segment, followed by the food and non-alcoholic beverage.

More specifically, the price of rent went up by 3 percent from 2.9 percent in February. The prices of water supply also climbed from 3.5 percent to 4 percent. Under the food index, the price of fish and other seafood soared by 7.7 percent, and those of vegetables and tubers by 6.1 percent. The price of cereals and cereal products also fell at a slower rate of 1.3 percent, from dropping by 4.9 percent in January.

Because of the conflict in the Middle East, Mapa said there is a possibility of higher prices in fuel, which may also affect other sectors. “There are potential risks towards the upward movement for the overall inflation, particularly yun sa na mention ko galing sa fuel, galing sa housing, water, electricity, gas, and other fuels, and possibly spillover effects on food items,” he said. Mapa added that historically, whenever there is a conflict, fuel prices go up, followed by a price increase in other goods. He said this happened during the 2022 Russia-Ukraine war. “In 2022, nakita natin pagtumataas presyo ng diesel at gasoline, yan yung una, and then susunod price of transport. Sumusunod kaagad tumataas presyo ng commodities- in particular fish and meat- yun yung nakita natin last time,” he said.

For diesel, Mapa is actually already seeing a higher inflation rate, even though the recent conflict has just started. Diesel still recorded a negative inflation in February, but prices are going up now. He said this can also lead to fare hikes. “Tumataas na kasi ang presyo even before first week of March. Nakikita namin na while negative siya, lumalapit na siya sa ating previous years prices,” he said. Mapa said the effect of the ongoing conflict in the Middle East may be seen in the upcoming monthly inflation reports.

The Department of Economy, Planning and Development (DEPDev) said the government will work to keep inflation manageable amid the ongoing conflict in the Middle East. This includes 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,” said DEPDev Secretary Arsenio Balisacan.

The Bangko Sentral ng Pilipinas (BSP), for its part, said the inflation outlook remains manageable. It noted, however, that the 2026 inflation forecast has risen slightly to 3.6 percent, mainly because of supply-side pressures. Meanwhile the BSP said it is closely monitoring recent developments in the Middle East to the extent that the rise in the price of oil leads to broader price pressures. "The BSP will ensure that policy settings remain in line with its pursuit of price stability conducive to sustainable growth and development," the central bank said.

Source: news.abs-cbn.com