SURGING fuel prices, along with increased transport costs, pushed inflation to a three-year high of 7.2 percent in April, the Philippine Statistics Authority (PSA) reported on Tuesday.
The rate — markedly higher than March’s 4.1 percent — blew past the Bangko Sentral ng Pilipinas’ (BSP) estimate of 5.6 to 6.4 percent and the 5.6 percent median in a Manila Times poll of economists.
Core inflation, which excludes select food and energy items, rose to 3.9 percent from 3.2 percent in the previous month.
The BSP, which last month raised key interest rates in response to rising inflation, said in a statement that it was “committed to fulfilling its primary mandate” of controlling consumer price growth and would “take necessary actions to ensure inflation returns to its 3-percent target within a reasonable time.”
“It will remain vigilant for spillover effects, data-driven and ready to act as needed,” the central bank added.
Year to date, headline inflation remained within the 2.0- to 4.0-percent target range at 3.9 percent.
Food, fuel prices surge
“The primary reason for the higher rate of inflation in April compared to March is the faster increase in the price of food and nonalcoholic beverages,” National Statistician Claire Dennis Mapa said during a briefing on Tuesday.
The food and nonalcoholic beverage index rose to 6.0 from 2.9 percent a month earlier, the PSA reported.
Also contributing were transport inflation, which surged to 21.4 percent from 9.9 percent, and housing, water, electricity, gas and other fuels at 8.2 percent from 4.7 percent.
Food and nonalcoholic beverages accounted for 31.9 percent or 2.3 percentage points of the headline rate; transport, 27.0 percent or 1.9 percentage points; and housing, water, electricity, gas and other fuels, 23.2 percent or 1.7 percentage points.
The Department of Economy, Planning and Development (DEPDev), meanwhile, tagged higher nonfood inflation of 8.2 percent, from 4.9 percent in March, which was due to a surge in private transport operating costs to 65.8 percent from 31.4 percent.
Inflation for electricity, gas and other fuels alone ballooned to 16.9 percent from 7.5 percent, the DEPDev said.
Mapa said that rising electricity and water demand could push inflation even higher this month
Food inflation, meanwhile, also rose to 6.1 percent in April from 2.7 percent a month earlier.
“The uptrend in the food inflation in April 2026 was mainly driven by the faster annual increase in the index of rice at 13.7 percent during the month from 3.5 percent in March 2026,” Mapa said.
Inflation seen staying above 7%
Chinabank Research said inflation was expected to stay above 7 percent if oil prices do not fall significantly. It added that the rate could average at least 6.0 percent for the year and remain above the BSP’s 2.0- to 4.0-percent target in 2027.
“Elevated inflation will continue to weigh on consumption and growth, constraining the BSP’s ability to hike rates aggressively and placing greater responsibility on the government to curb additional inflationary pressures,” Chinabank said.
The Federation of Philippine Industries (FPI), meanwhile, warned that manufacturers were now facing a “two-front challenge” as the surge in inflation came along with a contraction in the purchasing manager’s index (PMI).
S&P Global on Monday reported that the PMI had slipped to 48.3 in April from 51.3 in March, falling below the 50.0 threshold that separates expansion from contraction.
“On one side are rising costs for fuel, electricity, freight, imported inputs and raw material,” FPI Chairman Elizabeth Lee said.
“On the other is softer demand as inflation reduces household purchasing power. Businesses are being squeezed from both ends.”
Lee called for a tripartite cooperation to stabilize prices, preserve jobs, sustain investments and restore manufacturing momentum.
“Our message is one of urgency and partnership. Government, labor and industry must work together,” she said.
“Competitiveness cannot be taken for granted — it must be protected through decisive action and strengthened for the shocks of tomorrow,” she added.
Structural reforms are needed beyond monetary measures, Lee said. She called for lower logistics costs, reliable and competitively priced energy, stronger domestic supply chains, firm enforcement against smuggling and unfair trade, and a “relentless fight against corruption.”
Govt accelerating interventions
Socioeconomic Planning Secretary Arsenio Balisacan, meanwhile, said the government had stepped up measures to cushion the impact of the prolonged Middle East war and help ease the pressure of rising inflation on vulnerable sectors.
“Amid the Middle East conflict disrupting fuel supply chains, the government is intensifying targeted interventions, particularly to temper upward price pressures on food, energy and transport, while ensuring the continued stability of domestic supply,” the DEPDev chief said.
Balisacan said that as of April 24, the government had secured 2.91 billion liters of fuel with 1.305 billion liters set for delivery, enough to cover about 54 days of inventory.
He added that assistance is also being given to affected sectors with the Land Transportation Franchising and Regulatory Board running a service contracting program to support transport operators and drivers through fare discounts and per-trip subsidies.
As of April 24, about 1.11 million drivers had received financial aid, the DEPDev said. By April 27, meanwhile, 366,009 individuals had received fuel subsidies while 2.36 million commuters benefited from a 20-percent fare discount.
“We remain committed to a whole-of-government approach in addressing the impact of the Middle East crisis,” Balisacan said.
“Our priority is to ensure stable fuel supply, manageable prices and adequate protection for all sectors amid ongoing domestic and global challenges.” WITH A REPORT
FROM CHYNNA GRACE ONG
