Philippine inflation hits 3-year high amid Middle East conflict

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Higher fuel, food, transport and utility costs forced inflation to 7.2 per cent last month, the highest since March 2023

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ReutersPublished: 1:09pm, 5 May 2026Philippine annual inflation accelerated to a ⁠three-year high in April, ⁠as a surge in fuel prices ⁠triggered by the Middle East conflict raises the chance of more policy tightening.

Consumer prices rose 7.2 per cent last month, the statistics agency said on Tuesday, the highest since March 2023. That was above the 5.5 per cent median forecast in a poll of economists.

The April print also breached the central bank’s forecast range of 5.6 to 6.4 per cent for the month.

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Emilio Neri, lead economist at Bank of the Philippine Islands, said the Bangko Sentral ng Pilipinas (BSP) could be forced to do another off-cycle meeting and hike rates to stem inflation.

“Yes, we won’t rule out a forceful intermeeting hike. ⁠We can’t rely on supply side solutions to ensure that Philippine inflation is kept well-anchored in ‌this kind of volatile environment.”

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