Fuel price surge pushes Philippine inflation to 4.1 percent
Philippine inflation rose to 4.1% in March, exceeding the official target range. Higher fuel costs drove the increase as the central bank monitors new data.
The Philippines reported a significant acceleration in its annual inflation rate for March, which reached 4.1% and climbed above the central bank's target range of 2% to 4%. This figure is notably higher than the 2.4% recorded in February and exceeds the 3.7% median forecast from a Reuters poll. The latest data represents the highest inflation reading since July 2024, driven primarily by a sharp increase in global energy prices and their impact on domestic transport costs.
International energy benchmarks, such as Brent Crude Oil and West Texas Oil, have experienced heightened volatility due to escalating geopolitical tensions in the Middle East. These global shifts have been felt locally through price adjustments by major suppliers like SHELL PILIPINAS CORP, contributing to a 9.9% year-on-year rise in the transport index, the largest such increase since early 2023.
