NEW DELHI, India — President Ferdinand Marcos Jr. said Sunday that the government cannot guarantee a significant easing of inflation this year, citing persistent pressure from fuel and food prices, but expressed hope that economic conditions will improve in the final quarter.

“Well, first of all, the real problem that's driving all of this is inflation. And what is driving inflation is that, if you look, there are several measures of inflation. Core inflation does not include fuel and food. Our core inflation is okay. We're down in the mid-two or three [percent],” Marcos said during a Kapihan forum with members of the media.

His remarks came as the country continued to grapple with elevated inflation, which reached 6.1 percent in August 2026.

“But, of course, oil, fuel, and food. Food follows fuel. It's that. That's where the inflation comes from. That's why we're trying to do everything that we can to keep prices down. That was one of the very first things that we did,” Marcos said.

The President said inflation risks remain tied to developments in the Middle East, where the Philippines sources much of its imported oil.

“But, you know, you have oil at 100 per barrel. Because of the closure of the Strait of Hormuz, there is no prospect of any new oil. There is a constant threat to oil supplies because they bombed the pipeline. The Red Sea is also becoming a war zone. So, nobody wants to do anything. Everybody is afraid of what's going to happen next. They're not sure of what's going to happen next. Maybe just a select group knows what's going to happen next. Cleverer than us, so they have good information, better information than we do. So that's what's happening in the world now,” he said.

Public spending

Marcos also said the government is working to accelerate public spending to support economic growth amid pressure on the peso and other economic indicators.

“And then, actually, what happened is also we are starting to increase public spending again so the growth rates kick up. And I think that will take effect very soon. You'll begin to see how public spending works,” he said.

The administration had earlier slowed or halted some construction contracts following allegations of irregularities involving flood control projects, contributing to delays in public spending.

Marcos said government spending remains below year-ago levels but is gradually catching up.

“But right now, we are maybe less than 10% below [public spending] what we were year on year, if you look at all public spending. So that's okay. The peso to the dollar, it's because of inflation, because of the weaknesses that we are seeing. Unemployment went up. And that's, again, because of lack of public spending. That's the effect there. So, at least it's something that we can do something about and are doing something about, which is to increase it again. We're catching up. We will be, if you want to refer to it, we will be current in public spending in the next couple of months,” he said.

“[But] I don't promise anything about inflation because, again, because of the oil prices. So, that's the situation there. It's a tough time. We have to be very, very careful. I hope the numbers will improve in the last quarter,” Marcos added.

Debt level

Marcos also defended the country’s rising national government debt, which reached a record P19.39 trillion at the end of July 2026, saying the figure should be viewed alongside the country’s assets and overall economic output.

“When you say X Trillion dollars or whatever, it’s just numbers in the air, and it doesn’t mean anything. I always remind people that a balance sheet has two sides. There is the asset side, and there's the liability side. If you're going to look at the liability side, which is essentially kung ano yung utang mo, you have to look also at the asset side to have a ratio,” he said.

“Our ratios of debt-to-GDP are fine. We are healthier than many economies. Those ratios are very important, and the debt-to-GDP is the primary one. So that’s my advice on how you can see both sides of the balance sheet,” Marcos added.

The Bureau of the Treasury earlier reported that the country’s debt-to-GDP ratio stood at 66 percent in the second quarter of 2026.