Philippines Inflation Rises to 4.1% in March on Fuel Costs

MANILA, Philippines – Inflation in the Philippines surged to 4.1 percent in March, the highest rate in nearly two years, as escalating tensions in the Middle East drove up fuel prices and strained the import-dependent economy.

The Philippine Statistics Authority reported the figure on Tuesday, marking a sharp increase from February's 2.4 percent and exceeding the central bank's target range of 2 to 4 percent. This is the fastest annual price rise since July 2024, when inflation reached 4.4 percent. On a month-to-month basis, prices rose 1.4 percent, the highest since January 2023. The first-quarter average remained at 2.8 percent, still within the target band.

Transport costs were the primary driver, with the sector's inflation accelerating to 9.9 percent, the most since January 2023. Diesel prices, essential for public transport, jumped 59.5 percent year-on-year, reversing February's 1.3 percent decline. Gasoline prices rose 27.3 percent, up from a 5.7 percent drop the previous month. These gains represent the steepest increases since September 2022, during the early stages of Russia's invasion of Ukraine.

National statistician Dennis Mapa attributed the spike to the Middle East...