Oil crisis pushes Philippine inflation to over three-year high in April

By Katherine K. Chan, Reporter

Elevated oil prices began to feed through food and utility costs, driving headline inflation to an over three-year high of 7.2% in April, the Philippine Statistics Authority (PSA) said on Tuesday.

PSA data showed that the consumer price index (CPI) heated up to 7.2% last month, from 4.1% in March and 1.4% a year ago.

This was the fastest headline print since the 7.6% seen in March 2023. It also blew past the 5.5% median in a BusinessWorld poll of 17 analysts and the central bank’s 5.6%-6.4% estimate for the month.

National Statistician Claire Dennis S. Mapa noted that faster price increases in food and nonalcoholic beverages, transport, and utilities pushed the CPI up last month.

As of April, inflation averaged 3.9%, a tad below the upper end of the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% full-year target.

April likewise marked the second consecutive month that the headline print accelerated past the BSP’s target.

The PSA also reported that core inflation, which excludes volatile food and fuel prices, picked up to 3.9% in April from 3.2% in March and 2.2% a year earlier.

This was the quickest core print since the 4.4% logged in December 2023.

Meanwhile, inflation for the bottom 30% of income households accelerated to its fastest pace in over three years at 8.5% in April, from 4.2% in March and 0.1% in the same month last year.