Tight monitoring urged as inflation surges seen

Escalating fuel prices are beginning to ripple through the economy, prompting calls for tighter monitoring of commodity costs before the government considers drastic measures such as declaring a national state of emergency.

In a radio interview on Sunday, Senator Sherwin Gatchalian warned that sustained increases in oil prices could trigger “second-round effects,” driving up the cost of food and wages if left unchecked.

“It’s been almost three weeks of rising oil prices. This could lead to second-round or spillover effects on food and wages. The situation needs to be closely monitored,” Gatchalian, who chairs the Senate committee on finance, said.

The lawmaker stressed that authorities should first monitor commodity price movements and inflation trends before resorting to emergency declarations.

Prices on upswing

Recent data from the Philippine Statistics Authority showed inflation accelerated to 2.4 percent in February, the fastest pace in over a year, fueled largely by higher prices of food, beverages, housing, and utilities.

Food and non-alcoholic beverages, which account for nearly a third of the inflation basket, posted a 1.8 percent increase, underscoring the sensitivity of household expenses to supply shocks and rising transport costs.

The pressure may intensify further as fuel prices continue to climb. Industry estimates indicate another round of increases next week, with diesel expected to jump by as much as P17.50 per liter and gasoline by up to P8.50 per liter.