The government is prepared to deploy targeted subsidies and other aid to mitigate the potential inflationary impact of rising global tensions, particularly in the Middle East, according to the Department of Economy, Planning and Development (DEPDev).
DEPDev Undersecretary Rosemarie Edillon said in a Friday interview with Bagong Pilipinas that contingency measures are in place for potential spikes in oil prices.
Edillon cited the government’s preparedness for any scenario, saying that a top priority is ensuring the safety of Filipinos in affected areas.
She said programs are ready to address the domestic impact of rising fuel and crude oil prices, including fuel subsidies and other assistance to lessen the negative effects on inflation.
She assured the public that the government has a range of support mechanisms ready, from fuel subsidies for affected sectors to inflation-mitigating measures for basic goods.
Edillon said systems are already in place for a quick response should tensions escalate.
Despite growing global uncertainties, DEPDev expects inflation to remain within the government’s target range of 2 percent to 4 percent, Edillon said.
She expressed hope that other commodities would continue to stabilize in the market and that Middle East tensions would also ease, potentially leading to a rollback in prices next week, which would positively impact inflation.
For 2025, the government reduced its growth target to between 5.5 percent and 6.5 percent, down from an earlier forecast of 6 percent to 8 percent, given current global uncertainties, Edillon said.
She said DEPDev aims for the government to have flexibility to respond easily to any eventuality.
Edillon encouraged the public to be prudent, adopt cost-saving strategies, and continue monitoring developments.
She said if the price of a commodity increases, consumers could buy a substitute to avoid being affected by inflation. Regarding rising gas prices, she recommended careful planning of vehicle usage when going out.
Edillon said the government remains fully committed to acting swiftly to limit inflation’s impact, especially on vulnerable sectors.
