Gov't programs to ease global impact on inflation 

The Philippine government is prepared to roll out targeted subsidies and other forms of assistance to mitigate the potential inflationary impact of rising global tensions, particularly in the Middle East, according to a report by Philippine News Agency.

In a Bagong Pilipinas interview on Friday, Department of Economy, Planning and Development (DEPDev) Undersecretary Rosemarie Edillon assured that the government has laid out contingency measures in anticipation of potential spikes in oil prices.

“Actually, nakahanda po talaga ang gobyerno sa kahit anong possibility rito. Una sa lahat siyempre ang priority natin is to make sure that yung kaligtasan ng ating mga kababayan na nandon sa apektadong lugar (Actually, the government is really prepared for any possibility here. First of all, of course, our priority is to make sure of the safety of our countrymen who are in the affected areas),” she said.

“Pangalawa naman, yung magiging epekto nito dito sa ating bansa, nandiyan na rin po yung pwedeng epekto niya sa pagtaas ng presyo ng gasolina, mga krudo, nakahanda na rin ang ating programa tungkol sa fuel subsidy natin at iba pa po pwedeng maging assistance to make sure na maibsan natin yung negative impact nito especially on inflation (Secondly, its impact on our country, there is also the possible impact it will have on the increase in the price of gasoline, crude oil, our program regarding our fuel subsidy and other things are ready to alleviate the negative impact of this, especially on inflation),” she added.

Edillon assured the public that the government has readied a range of support mechanisms, from fuel subsidies for affected sectors to inflation-mitigating measures for basic goods.

She noted that the systems are already in place for quick response in case the tension escalates.

Meanwhile, Edillon said that despite growing global uncertainties, DEPDev projects inflation to remain within the government’s target range of 2 percent to 4 percent.

“Hopefully naman yung iba pang mga commodities natin magtuloy-tuloy pa rin yung pagstabilize ng market (Hopefully, mag-stabilize na rin yung tension sa Middle East kasi mukhang pwede yata magkaroon ng rollback sa susunod na linggo in which case, maano naman po yung inflation natin magiging maayos din (our other commodities will continue to stabilize in the market. Hopefully, the tension in the Middle East will also stabilize because it looks like there could be a rollback next week, in which case, our inflation will also be fine),” she said.

Edillon explained that for 2025, the government reduced its growth target to between 5.5 and 6.5 percent, down from the government's earlier forecast of 6 to 8 percent, given the current global uncertainties.

She said the DEPDev aims for the government to have a little allowance so it could move and respond easily in case of any eventuality.

Edillon encouraged the public to be prudent, adopt cost-saving strategies, and continue to monitor developments.

“Kung halimbawa may tumataas na isang commodity, pwede naman tayong bumili ng substitute niya para hindi tayo maapektuhan ng inflation. Itong sa pagtaas ng presyo ng gas, sinasabi nga po namin is planuhin ng maayos ang paggamit ng sasakyan, paglabas natin (For example, if a commodity increases in price, we can buy its substitute so that we are not affected by inflation. With the increase in gas prices, we are advising planning our vehicle usage properly when we go out),” she said.

Edillon also assured that the government remains fully committed to acting swiftly to limit inflation’s impact, especially on vulnerable sectors.