Inflation in the Philippines accelerated sharply to 4.1% in March, its highest level in nearly two years, as surging global fuel prices linked to the Middle East conflict intensified economic pressures on the import-dependent economy, official data showed Tuesday.
The March figure marks a steep rise from 2.4% in February and represents the highest inflation rate since July 2024, underscoring the impact of sustained volatility in global energy markets following the ongoing confrontation involving Iran.
Authorities have already declared a “national energy emergency”, as the country grapples with rising import costs and supply uncertainties. In response, Manila has moved to diversify its energy sourcing, including opening supply channels with Russia, while rolling out mitigation measures such as cash subsidies for transport workers and a four-day work week for civil servants to manage fuel consumption.
According to the government’s economic planning department, the transport sector was the primary driver of inflation in March, reflecting the direct pass-through effect of higher fuel prices on domestic costs.
The latest data highlights the broader economic fallout of the Middle East conflict, with energy-importing economies particularly vulnerable to prolonged price shocks and supply disruptions.