Government expands aid as inflation hits 7.2%

The government has stepped up measures to cushion vulnerable sectors from rising prices as inflation accelerated to 7.2 percent in April 2026, driven by sharp increases in food, fuel, transport and utility costs amid the prolonged Middle East conflict.

The Department of Economy, Planning, and Development said the government is intensifying targeted interventions to soften price pressures on food, energy and transport while maintaining domestic supply stability.

The Philippine Statistics Authority reported Tuesday, May 5, that headline inflation quickened to 7.2 percent in April from 4.1 percent in March, bringing the year-to-date average to 3.9 percent.

The April rate exceeded the Bangko Sentral ng Pilipinas’ forecast range of 5.6 percent to 6.4 percent and was well above the government’s 2 percent to 4 percent target range.

The last time inflation was near this level was in March 2023, when it reached 7.6 percent, PSA data showed.

Higher inflation was primarily due to faster increases in both non-food and food prices.

Non-food inflation rose to 8.2 percent in April from 4.9 percent in March, driven by the sharp rise in operating costs of private transport to 65.8 percent from 31.4 percent.

Inflation in electricity, gas and other fuels reached 16.9 percent in April from 7.5 percent in March.

Food inflation also accelerated to 6.1 percent from 2.7 percent, as rice inflation rose to 13.7 percent from 3.5 percent.

Inflation in fish increased to 9.4 percent from 6.6 percent, while vegetables rose to 10.4 percent from 7.0 percent.

PSA Undersecretary and National Statistician Claire Dennis Mapa said the main drivers of inflation in April were surging rice and fuel prices.

Transport costs surged to 21.4 percent in April from 9.9 percent in March, while housing, water, electricity, gas and other fuels rose to 8.2 percent from 4.7 percent.

Mapa said diesel prices skyrocketed by 124 percent, gasoline prices surged by 60.5 percent and liquefied petroleum gas prices increased by 44.7 percent in April.

Inflation was worse for the poorest households, with the PSA reporting that inflation for the bottom 30 percent of the population hit 8.5 percent.

Core inflation, which excludes selected food and energy items that are prone to sharp swings, increased to 3.9 percent in April from 3.2 percent in March.

The purchasing power of the Philippine peso dropped to PHP 0.7326 in April from PHP 0.75 in March.

Mapa said the April figure was the lowest purchasing power of the peso since rebasing was done in 2018.

While the PSA will continue monitoring oil prices, Mapa said the real risk “would be on the food side.”

He noted that fish and vegetable prices have been rising as fuel costs make production and transport more expensive.

“So pag konti ang lumalabas o hindi lumalabas yung ating mga fisherfolks, siyempre bumababa ang ating production,” he explained.

“Amid the Middle East conflict disrupting fuel supply chains, the government is intensifying targeted interventions, particularly to temper upward price pressures on food, energy, and transport, while ensuring the continued stability of domestic supply,” said DEPDev Secretary Arsenio M. Balisacan.

Balisacan underscored the importance of the Unified Package for Livelihoods, Industry, Food, and Transport, or UPLIFT, as the government’s comprehensive whole-of-government response framework to the crisis.

Under UPLIFT, the Department of Energy is continuously seeking alternative energy sources while developing local capacity to secure stable fuel supply.

As of April 24, the government had secured 2.91 billion liters of fuel supply, with 1.305 billion liters scheduled for delivery, equivalent to 54 days of inventory.

The Land Transportation Franchising and Regulatory Board is implementing a Service Contracting Program to assist transport operators and drivers through fare discounts and per-trip subsidies.

As of April 24, 1.11 million drivers had received financial assistance.

As of April 27, there were 366,009 fuel subsidy recipients and 2.36 million commuters who received 20 percent fare discounts.

The government is also extending financial assistance to farmers and fisherfolk through Department of Agriculture programs.

These include the suspension of loan repayments of up to one year under the Survival and Recovery Program of the Agricultural Credit Policy Council.

The DA is also piloting a lower-cost fertilization protocol to reduce reliance on urea, a key petroleum-based input in rice production.

The government has established 787 Kadiwa ng Pangulo sites and price support outlets to connect consumers directly to farmers and producers for lower-priced rice and other essential food products.

DEPDev said the UPLIFT microsite, accessible at uplift.gov.ph, provides weekly updates on the program’s implementation.

“We remain committed to a whole-of-government approach in addressing the impact of the Middle East crisis. Our priority is to ensure stable fuel supply, manageable prices, and adequate protection for all sectors amid ongoing domestic and global challenges,” Balisacan said.