Oil Shock Sends Philippine Inflation Surging to 20-Month High

An employee holds a fuel nozzle at a Pilipinas Shell Petroleum Corp. gas station in Las Pinas, the Philippines, on Wednesday, Sept. 7, 2022. Pilipinas Shell plans to have retail shops and restaurants in a third of its gasoline refilling stations by 2025 as its seeks to boost revenues beyond fuel. Photographer: Iya Forbes/Bloomberg Photo by Iya Forbes /BloombergArticle content(Bloomberg) — The Philippines’ inflation spiked in March to the highest in nearly two years as the Iran war choked energy supply and pushed up fuel prices.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentConsumer prices rose 4.1% last month from a year ago, the Philippine Statistics Authority said on Tuesday. That exceeded the median estimate of 3.8% in a Bloomberg News survey and the 2.4% recorded in February.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe Southeast Asian nation is vulnerable to the Iran war because it imports almost all of its oil needs from the Middle East. Oil prices have surged after Iran tightened its grip over traffic through the vital Strait of Hormuz, forcing nations like the Philippines to scramble for supply.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentTransportation inflation hit 9.9%, the fastest pace since January 2023 as gasoline and diesel prices marked their biggest gains since September 2022, National Statistician Dennis Mapa said in a briefing. Article contentCore inflation, which excludes some food and energy items, quickened to 3.2%, the highest in almost two years.Article contentThe Bangko Sentral ng Pilipinas has said headline inflation would likely breach the ceiling of its 2%-4% target range this year. Still, it maintained its policy rate in an off-cycle meeting last month, saying that monetary policy has “limited effectiveness” against supply shocks.Article contentWhat Bloomberg Economics Says…Article content“Philippine inflation — which accelerated sharply in March due to the oil shock from the Middle East — will continue to pick up if supplies remain disrupted. For now, the core gauge remains benign. This is likely to allow Bangko Sentral ng Pilipinas to avoid raising rates in the first half of 2026.”Article content— Tamara Mast Henderson, economistArticle contentFor the full note, click here Article contentPresident Ferdinand Marcos Jr.’s government has been trying to blunt the impact of the oil shock by delaying transport fare hikes and negotiating with manufacturers to stabilize costs of basic goods.Article contentLast month, he declared a national energy emergency as the Middle East conflict threatened fuel supplies and the economy. Shortly after the war broke out, Marcos shortened the government’s work week to four days and ordered agencies to cut energy costs by up to 20%.Article content(Updates with comments from briefing, Bloomberg Economics.)Article contentTrending CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Diesel-rich Alberta synthetic crude oil triples in four days Oil & Gas Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Diesel-rich Alberta synthetic crude oil triples in four days Oil & Gas Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing