Oil crisis pushes Philippine inflation to 4.1%, transport costs surge

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

April 7, 2026 | 10:25am

MANILA, Philippines — The Philippines’ inflation rate spiked to 4.1% in March 2026 due to a rapid rise in transport costs, the Philippine Statistics Authority (PSA) said on Tuesday, April 7.

This is a near-double increase from the inflation rate in February 2026, which was at 2.4%. The inflation rate in March 2025 was at 1.8%.

This is the highest since July 2024, which saw rapid increases in food inflation. The latest inflation rate surpasses the government’s target range, which is 2% to 4%.

PSA chief and national statistician Dennis Mapa said that the increase in inflation was mainly driven by the rapid rise in costs in the transport sector.

Transport inflation surged from -0.3% in February 2026 to 9.9% in March 2026. Mapa attributed this to the oil crisis caused by the war in the Middle East. After the US and Israel struck Iran, Tehran retaliated by closing down the Strait of Hormuz—a vital passage where 20% of global oil supplies travel through.

The food and non-alcoholic beverages sector was the second-highest contributor to the increase in inflation, which rose from 1.8% in February 2026 to 3.0% in March 2026. It is also the sector with the biggest share in overall inflation.

The biggest contributor to food inflation this month is the increase in the rice index, which finally registered a positive inflation rate for the first time in more than a year. The inflation of rice had been decelerating for 14 months until March 2026.

Other food groups also experienced higher inflation rates, including corn (12.4% from 9.4%); flour, bread and other bakery products, pasta products, and other cereals (2.5% from 2.4%); oils and fats (8.9% from 8.8%); fruits and nuts (5.1% from 3.8%); and vegetables, tubers, plantains, cooking bananas, and pulses (6.9% from 6.1%).

Meanwhile, housing, water, electricity, gas, and other fuels also increased to 4.3% in March 2026 from 3.5% in February 2026, further driving overall inflation.

There was an uptick in most industries, while a few were able to retain their inflation rate, according to the PSA.

Mapa said that the uptick in inflation is expected to increase in the following months, with the conflict showing little signs of slowing.

The Department of Economy, Planning, and Development (DEPDev) said that the government is rolling out measures to mitigate the impacts of inflation, including providing fuel subsidies and emergency oil procurements.

“The government is firmly committed to ensuring the continuous delivery of services, even as we pursue decisive measures to enhance the resilience of our economy and institutions, carefully balancing short-term relief measures and longer-term considerations toward enabling the economy to recover high growth quickly,” DEPDev Secretary Arsenio Balisacan said.