INFLATION rose to a 13-month high of 2.4 percent in February as food and energy prices rose, the Philippine Statistics Authority (PSA) reported on Thursday.
The rate — up from 2.0 percent a month earlier and the highest since January 2025’s 2.9 percent — was slightly below the 2.5-percent median in a Manila Times poll but within the Bangko Sentral ng Pilipinas’ (BSP) 2.3- to 3.1-percent estimate.
Core inflation, which strips out volatile food and energy prices, edged up to 2.9 percent from 2.8 percent.
Year to date, consumer price growth remained within the BSP’s 2.0- to 4.0-percent target at 2.2 percent.
The PSA said that last month’s rise was primarily due to food and nonalcoholic beverage inflation having picked up to 1.8 percent from 1.1 percent.
Food and nonalcoholic beverages, along with housing, water, electricity, gas and other fuels, each accounted for 0.7 percentage points, or 29.9 percent, of overall inflation.
Food inflation alone accelerated to 1.6 percent in February from 0.7 percent a month earlier, the PSA said, primarily due to higher fish, vegetable and fruit prices.
Eye on Middle East conflict
“Overall price conditions remain stable,” Socioeconomic Planning Secretary Arsenio Balisacan said.
“However, we are mindful of recent geopolitical developments, which we are closely monitoring, along with domestic supply conditions of key commodities.”
This was echoed by Finance Secretary Frederick Go, who said that his department would “continue coordinating with relevant agencies to ensure a measured, responsible, and timely response to evolving global developments.”
Inflation fears have been stoked by conflict in the Middle East, which has led to a surge in oil prices and pass-on effects that could also weigh on economic growth.
The BSP, which has continued to lower key interest rates in a bid to boost the economy following a marked slowdown last year, said its policymaking Monetary Board “will remain vigilant and continue to be guided by incoming data.”
“The BSP is also closely monitoring recent developments in the Middle East to the extent that the rise in the price of oil leads to broader price pressures,” it added.
“The BSP will ensure that policy settings remain in line with its pursuit of price stability conducive to sustainable growth and development.”
The central bank’s benchmark rate currently stands at 4.25 percent following a 25-basis point reduction in February.
The February inflation result, along with March data due April 7, will be considered during the next policy meeting on April 23.
Mitigation measures planned
Balisacan, meanwhile, said the government was considering the possible lifting of excise taxes on petroleum products, particularly if global oil prices reach $80 per barrel, as part of efforts to reduce inflation pressures.
The Department of Finance (DOF) said the government was also coordinating with local oil companies to stagger fuel price increases to reduce the burden on Filipinos.
Fuel subsidies will be provided to public utility vehicle operators to keep fares from rising and will also be given to farmers and fisherfolk to keep food prices stable.
The government is also considering providing free bus rides, the DOF said.
Balisacan said measures to reduce fuel consumption would include employee shuttle services, encouraging carpooling, and implementing flexible work arrangements.
“We are ready to deploy timely and targeted interventions should external shocks intensify,” he said.
“Our priority is to protect vulnerable households, support affected industries, and sustain the country’s growth momentum amid global uncertainties.”