Gatchalian warns of inflation spike

Senator Sherwin Gatchalian has raised alarm over the continued rise in the prices of basic commodities, warning that surging global fuel costs and escalating tensions in the Middle East could further weaken the Philippine economy.

Speaking during a media forum in Malate, the chair of the Senate committee on economic affairs said inflation, which recently climbed to 7.2 percent, may continue to accelerate due to persistent increases in global oil and coal prices.

Citing economic data from March and April, Gatchalian noted that rising fuel costs have already triggered successive weekly pump price hikes nationwide.

He warned that worsening conflict in the Middle East could push inflation even higher, estimating that inflation may climb from 4.5 percent to 4.8 percent should oil prices hit US$140 per barrel.

“(Our) GDP could drop to 3.5 percent and inflation could reach 8.6 percent if prices continue to surge,” Gatchalian said.

The senator stressed that the government must immediately pass measures aimed at increasing the take-home pay of middle-class workers to cushion the impact of rising prices on household budgets.

He also called for stronger government intervention through subsidies for vulnerable sectors, including low-income families, transport groups, and micro, small and medium enterprises.

Gatchalian further disclosed that he has urged the Departments of Agriculture and Trade and Industry to intensify monitoring of basic commodity prices to prevent possible profiteering and abuses in the market.

The lawmaker also questioned why domestic fuel price rollbacks have not reflected the sharp decline in international Brent crude prices.

“(I fully) support our president’s declaration of a state of national energy emergency (because) it as a necessary step to manage the impact of the crisis. And to reduce dependence on imported oil, (I am) pushing for an extension of incentives for electric vehicles,” he said.

Despite backing the promotion of electric vehicles, Gatchalian acknowledged that widespread EV adoption remains a long-term goal due to existing infrastructure limitations. TRACY CABRERA