Government readies inflation safeguards amid oil risks

The Philippine government said it is prepared to roll out measures to keep inflation manageable and cushion the impact of volatile oil prices as conflict in the Middle East adds fresh pressure on global energy markets.

The Department of Economy, Planning, and Development (DEPDev) said the country’s headline inflation rose to 2.4 percent in February 2026 from 2.0 percent in January, bringing the year-to-date average to 2.2 percent, still within the government’s 2 percent to 4 percent target range for 2026 and 2027.

DEPDev said February inflation was driven mainly by faster food inflation, which climbed to 1.6 percent from 0.7 percent, and non-food inflation, which accelerated to 2.8 percent from 2.5 percent.

Food inflation was led by faster price increases in fish, which rose 7.7 percent from 7.3 percent, amid shellfish and crustacean bans linked to red tide alerts.

Non-food inflation also picked up due to higher inflation in housing rentals, which increased to 3.0 percent from 2.8 percent, and electricity, which edged up to 6.6 percent from 6.5 percent.

“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,” DEPDev Secretary Arsenio M. Balisacan said.

Balisacan said the government would implement mitigating measures to address upside inflation pressures arising from the Middle East conflict, including the possible lifting of excise taxes on petroleum products if global oil prices breach USD 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,” Balisacan said.

He said the government would also pursue long-term measures to reduce dependence on imported oil by incentivizing renewable energy and alternative fuels, promoting active transport, and strengthening energy conservation programs.

“We are ready to deploy timely and targeted interventions should external shocks intensify. Our priority is to protect vulnerable households, support affected industries, and sustain the country’s growth momentum amid global uncertainties,” Balisacan said.

The latest inflation reading reflects how food and power costs continue to shape price movements even as overall inflation remains within the government’s target band.