MANILA, Philippines — Renewed geopolitical risk premiums stemming from the escalating Middle East conflict could push Philippine headline inflation toward 4 percent in the coming months, an analyst said, as higher oil prices threaten to add to existing price pressures.
In a commentary, Bank of the Philippine Islands (BPI) lead economist Emilio Neri Jr. said developments in the Middle East have reintroduced volatility into global energy markets, with direct implications for inflation, interest rates, remittances and the peso.
“A renewed leg higher in global oil prices would amplify second-round effects through transport, electricity, and logistics costs, potentially broadening inflationary pressures beyond food and fuel,” Neri said.
