The Philippines' annual inflation rate surged to 4.1% in March, surpassing the central bank's target range and exceeding forecasts. This marks the highest inflation rate since July 2024.
The primary driver was a significant increase in transport costs, with diesel prices jumping 59.5% and gasoline up 27.3% year-on-year. These gains are attributed to escalating Middle East tensions and global energy price volatility.
The Bangko Sentral ng Pilipinas (BSP) stated it will monitor incoming data closely for potential policy adjustments at its upcoming meeting on April 23. Core inflation also rose to 3.2%, indicating potential second-round effects. The BSP previously kept its key rate steady at 4.25% to address rising risks.