Middle East conflict may drive inflation higher —IBON Foundation

Filipinos may expect higher prices of commodities as the ongoing conflict in the Middle East could drive inflation higher, according to the development organization IBON Foundation.

Speaking to Super Radyo dzBB on Sunday, IBON executive director Sonny Africa said inflation may climb to 6% to 7% by the end of the year if the Middle East conflict continues.

“Kung ngayon yung 2.4% ngayon Pebrero, malamang sa hindi, tatama ng 5% ngayon Marso pa lamang hanggang sa kalagitnaan ng taon, mas maaring umabot ng 6% to 7% sa katapusan ng taon,” Africa said.

“Hindi naman sasabay yung sahod; di naman madadagdagan ang trabaho,” he added.

(If inflation is 2.4% this February, it would probably reach 5% by March until mid-year; it could also reach 6% to 7% by the end of the year.)

In data released by the Philippine Statistics Authority, inflation continued to accelerate in February mainly due to higher prices of food, non-alcoholic beverages, housing, and utilities.

Consumer prices rose by 2.4% in February, faster than the 2.0% in January, and 2.1% in February 2025—the fastest pace in 12 months.

The Department of Economy, Planning and Development (DEPDev) has said inflation could accelerate to as much as above 7% should the conflict in the Middle East escalate further and for a longer period.

Africa said that if the government fails to provide long-term solutions, more Filipinos will become poor.

“Kung walang agarang action sa gobyerno—hindi lang yung konti lang yung natutulungan, konting ayuda—walang duda itong pagtaas ng presyo sa bilihin, hudyot ito ng 2 million to 3 million pamilyang Pilipino na dadagdag sa mahirap,” he said.

(If the government fails to take immediate action—not just the few who receive minimal aid—there is no doubt that the increase in prices of goods will push 2 to 3 million Filipino families further into poverty.)

Diesel prices are expected to rise by P16.50 to P17.50 per liter and gasoline by P7.50 to P8.50 per liter next week, according to an industry source.

The Department of Energy (DOE) previously announced the following fuel price adjustments for the week of March 17 to March 23:

• Diesel - P20.40 to P23.90 per liter
• Gasoline - P12.90 to P16.60 per liter
• Kerosene - P6.90 to P8.90 per liter

— BM, GMA Integrated News