Philippine annual inflation sizzles to 7.2% in April

Inflation in the Philippines skyrocketed to a three-year high of 7.2% in April as the oil shock continued to push fuel and food prices higher, the Philippine Statistics Authority reported on Tuesday, May 5.

This is nearly double the 4.1% inflation print recorded in March and over five times faster than the 1.4% inflation rate logged a year before. It is also the highest inflation rate since March 2023, and the increase is the largest since the one from December 1993 to January 1994, when inflation jumped from 7.4% to 12.8%.

The latest inflation figures place the 2026 average print at 3.9%, on the upper end of the government target range of 2% to 4%.

National Statistician Dennis Mapa said historically high fuel prices remain the main driver for inflation, with gasoline prices logging a 59.6% inflation rate and diesel seeing a triple-digit inflation print at 122.7%.

Despite consecutive rollbacks in the past few weeks, Mapa said fuel prices remain elevated due to the Middle East situation.

Food prices, particularly the cost of rice and fish, were also among the main drivers of the faster inflation rate in April.

Inflation of rice and cereal products shot up to 11% in April from March’s 3.6%, while inflation of fish prices jumped to 9.4% from 6.6%.

Mapa said the soaring prices of fuel may have deterred some fisherfolk from fishing.

“So, ‘pag konti ‘yung lumalabas o hindi lumalabas ‘yung ating mga fisherfolk, siyempre bumababa ‘yung ating production,” he said.

(So, if only a few fisherfolk head out to sea or they don’t at all, of course our production is going to go down.)

Inflation of liquefied petroleum gas (LPG) prices also surged to 45.8% from 3.7%.

In Metro Manila, inflation accelerated to 5.5% in April from 3.5% due to higher utility prices brought by the oil shock. Meanwhile, areas outside Metro Manila recorded an average inflation rate of 7.7%, nearly double the previous inflation print of 4.2%.

Central Visayas continued to log the fastest inflation rate at 10.8% compared to March’s 7.4%, while the Negros Island Region recorded the slowest at 4.9% from 1.5%.

In a statement, the Department of Economy, Planning, and Development (DEPDev) vowed to ramp up efforts to cushion the impact of the oil shock on vulnerable sectors. This includes the Department of Energy’s search for alternative energy sources while developing local capacity to ensure stable fuel supply.

DEPDev also noted targeted support being provided to vulnerable sectors, such as the service contracting program of the Land Transportation Franchising and Regulatory Board.

“As of April 24, 2026, 1.11 million drivers were given financial assistance. As of April 27, 2026, there have also been 366,009 fuel subsidy recipients and 2.36 million commuters who were given 20% fare discounts,” the socioeconomic planning department said.

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The Bangko Sentral ng Pilipinas earlier forecast inflation could soar between 5.6% and 6.4% as higher fuel prices have begun to impact the cost of food and electricity.

Source: Rappler

Energy Crisis and Inflation: How Rising Costs Are Reshaping Philippine Housing Affordability

The Philippine property market has always been closely tied to macroeconomic realities, but in 2026, the pressure is coming from multiple directions at once. Rising energy costs, persistent inflation, and shifting global conditions are converging to reshape how Filipinos—and especially OFWs—approach housing decisions. What was once a relatively predictable growth story is now entering a more complex phase, where affordability is no longer just about property prices, but about the total cost of living.

At the center of this shift is the energy problem. The Philippines remains heavily dependent on imported fuel, making it vulnerable to global price shocks. When oil and electricity costs rise, the impact cascades through the economy. Transportation becomes more expensive, construction materials increase in price, and household utility bills climb. For property buyers, this translates into a higher “real cost” of owning a home, even if the property price itself hasn’t increased dramatically.

Developers are already feeling the strain. Construction costs have risen due to more expensive cement production, steel imports, and logistics. These increases are rarely absorbed entirely by developers; they are passed on, at least partially, to buyers. This helps explain why even in areas where demand has softened, prices have not dropped significantly. Instead, the market is seeing a slowdown in launches, a shift toward smaller units, and a growing focus on mid-market and affordable housing segments.

For buyers, the situation is more nuanced. Inflation affects not just big-ticket purchases like real estate, but everyday expenses—food, utilities, transportation, and education. When these costs rise, disposable income shrinks. This directly impacts a household’s ability to qualify for housing loans or maintain mortgage payments. Even a small increase in monthly expenses can make the difference between affordability and financial strain.

OFWs, long considered the backbone of Philippine real estate demand, are not immune either. Global economic uncertainty, particularly in energy-sensitive regions like the Middle East, can affect job stability and remittance flows. A dip in remittances doesn’t just reduce purchasing power; it also weakens confidence. Many OFWs delay property purchases during uncertain times, preferring liquidity over long-term commitments. This has a ripple effect on pre-selling markets, where developers rely heavily on overseas buyers.

Interest rates add another layer of complexity. While rates may not be aggressively rising, they remain elevated enough to influence borrowing behavior. Higher borrowing costs reduce loan affordability, particularly for first-time buyers. Combined with inflation, this creates a double burden: higher monthly amortizations and reduced income flexibility.

Yet, this environment is not purely negative. It is forcing a recalibration that could ultimately strengthen the market. Buyers are becoming more selective, prioritizing location, accessibility, and long-term value over speculative gains. Properties near transport infrastructure, economic zones, and emerging business districts are gaining attention because they offer resilience against rising costs. Living closer to work or transport hubs, for example, can offset high fuel prices and commuting expenses.

Developers, in response, are adjusting their strategies. There is a noticeable pivot toward integrated communities where residential, commercial, and lifestyle components are combined. The idea is simple but powerful: reduce the need for long-distance travel. This kind of development is no longer just a lifestyle upgrade; it is becoming a practical response to economic pressure.

Energy efficiency is also starting to matter more. While still not a primary selling point for most buyers, features such as better insulation, natural ventilation, and solar-ready systems are gaining relevance. In a high-energy-cost environment, these features translate directly into savings. Over time, this could reshape buyer preferences and push the market toward more sustainable building practices.

Geographically, the affordability equation is shifting as well. Metro Manila, already one of the most expensive areas in the country, is facing growing resistance from buyers who are priced out not just by property values but by the overall cost of living. This is accelerating the movement toward provincial and secondary markets. Cities like Cebu, Davao, and emerging hubs in Central Luzon are benefiting from this trend, offering lower entry prices and improving infrastructure.

For investors, the key takeaway is that the definition of “affordable” is evolving. It is no longer just about the purchase price per square meter. True affordability now includes energy costs, transportation expenses, financing conditions, and income stability. Properties that align with these realities—those that minimize ongoing costs and maximize convenience—are likely to outperform in the coming years.

For end-users, caution and planning are more important than ever. Locking in fixed-rate financing, choosing locations with strong infrastructure access, and maintaining financial buffers are becoming essential strategies. The era of easy property gains driven by rapid appreciation is giving way to a more disciplined market, where long-term sustainability matters more than short-term speculation.

The Philippine real estate market is not collapsing under the weight of inflation and energy costs, but it is undeniably transforming. Rising costs are forcing both buyers and developers to rethink assumptions and adapt to a new economic landscape. In many ways, this shift could lead to a healthier, more balanced market—one that prioritizes real value over hype.

The challenge, and the opportunity, lies in understanding this transition. Those who adjust early—by focusing on efficiency, location, and financial resilience—will be in the strongest position to navigate the changing dynamics of housing affordability in the Philippines.

Source: Ziggurat Real Estate

Inflation accelerates to 4.1% in March

Higher fuel prices, along with increased transport costs, pushed the country’s inflation rate to 4.1 percent last month, the Philippine Statistics Authority (PSA) reported.

It was markedly higher than the 2.4 percent and 1.8 percent a month and year earlier.

This is also higher than the 3.7 percent median forecast of The Manila Times' poll of economists, and the Bangko Sentral ng Pilipinas' estimate of 3.1 to 3.9 percent.

This marks the first time inflation breached the 2.0- to 4.0-percent target since it reached 4.4 percent in July 2024.

Core inflation, which excludes select food and energy items, rose to 3.2 percent in March 2026, from 2.9 percent in the previous month. It was also higher than the 2.2 percent core inflation in March 2025.

To date, headline and core inflation is still within the target at 2.8 percent and 3.0 percent, respectively.

Source: Manila Times