BSP monitors global inflation risks from Ukraine crisis

The Bangko Sentral ng Pilipinas (BSP) is closely monitoring global developments, particularly the impact of rising oil prices due to the Ukraine-Russia conflict on domestic inflation.

Governor Benjamin Diokno stated that the BSP will remain vigilant against second-round effects from supply-side pressures or shifts in public expectations.

The government has allocated a budget for subsidies to sectors affected by higher oil prices, such as PUV drivers and farmers.

ING Bank’s senior economist Nicholas Mapa warned that 2022 may see a new supply shock driving up domestic prices, with fuel pump prices reaching unprecedented levels.