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Saturday, June 6, 2026 Vol. 21 No. 235
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TRANSPORT, FOOD COSTS EASE;
MAY INFLATION IS 6.8% April factory output grows faster, at 12% T
BALANCING INFLATION Men on bicycles carry LPG tanks through Manila streets as jeepneys move through the background, reflecting a daily balancing act between household energy costs and transport expenses. With LPG serving as a primary cooking fuel and jeepneys heavily dependent on gasoline, both essentials remain tightly linked to global oil prices and currency movements, underscoring how inflation is ultimately felt in parallel—at home and on the road—where families and commuters absorb the same imported cost pressures in different forms. MDALMACIO | DREAMSTIME.COM
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By Justine Xyrah Garcia
ESPITE the slowdown in headline inflation in May, economists said the Philippines remained vulnerable to imported price pressures, with rice, gasoline, and liquefied petroleum gas (LPG) accounting for more than a third of the overall increase in consumer prices. Data released by the Philippine Statistics Authority (PSA) on Friday showed headline inflation slowed to 6.8 percent in May from the three-year high of 7.2 percent recorded in April. Despite the deceleration, av-
erage inflation in the first five months of the year stood at 4.5 percent, still above the Bangko Sentral ng Pilipinas’ (BSP) 2- to 4-percent target range. PSA said rice, gasoline, and LPG remained among the biggest
drivers of inflation in May, contributing a combined 2.5 percentage points, or nearly 37 percent, of the 6.8-percent headline rate. Former Socioeconomic Planning Secretary Dante B. Canlas said the country’s inflation remains largely influenced by developments abroad, particularly tensions in the Middle East that continue to affect food and energy prices. “The easing in May stems from an announced ceasefire that has however not been sustained. Expect price volatilities from energy and food as long as the Iran war persists,” Canlas told the BusinessMirror. PSA data showed rice inflation accelerated to 15.6 percent in May from 13.7 percent in April, the fastest pace since July 2024. Rice also remained the single largest contributor to overall inflation, accounting for 1.1 percentage points
of the 6.8-percent headline rate. Meanwhile, gasoline inflation eased to 51.6 percent from 59.6 percent in April, while LPG inflation slowed to 41 percent from 45.8 percent. Despite the moderation, both commodities remained among the largest contributors to inflation. Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo R. Rivera acknowledged that a significant portion of the May rate “appears to be linked to external factors, particularly fuel and other imported commodities.” However, he noted that domestic supply constraints, particularly in logistics and food, also play an important role. “The current inflation story is a combination of imported
₧42.64B
R
EFORMS aimed at improving the ease of doing business and strengthening the Philippines’s competitiveness helped lift foreign investment approvals by more than 50 percent in the first quarter, according to the country’s trade officials. Trade Secretary and Board of Investments (BOI) Chairman Ma. Cristina Roque said the latest figures show that the country continues to attract foreign investors despite a challenging global environment. In May, the Philippine Statistics Authority (PSA) showed that approved foreign investment commitments registered with investment promotion agencies (IPAs) reached P42.64 billion from January to March, up 52.31 percent from P27.99 billion in the same period last year. (See: https://businessmirror.com.ph/2026/05/14/ central-luzon-top-site-for-foreigninvestment-commitments/) “The strong first-quarter performance demonstrates that the Philippines remains a compelling
₧27.99B
Q1 2026
Q1 2025
“The strong first-quarter performance demonstrates that the Philippines remains a compelling destination for foreign investments.” — Trade Secretary Ma. Cristina Roque, underscoring investor confidence amid global headwinds
destination for foreign investments,” Roque said in a statement. South Korea emerged as the largest source of approved foreign investments during the period, accounting for P25.37 billion or 59.51 percent of total commitments. “With South Korea accounting for nearly 60 percent of total inflows, the results reflect the strength of our economic partnership and continued investor confidence in the Philippines as a destination for highimpact investments that generate
Foreign investment approvals registered with investment promotion agencies (IPAs) in Q1 2026, rising 52.31% from P27.99 billion a year earlier, signaling stronger investor commitments despite global uncertainty.
jobs and support economic growth,” Roque said. Overall approved investments, including both foreign and domestic commitments, reached P125.95 billion in the first quarter. Domestic investments accounted for P83.31 billion of the total. The approved projects are expected to generate 21,623 jobs. Among investment promotion agencies, the BOI accounted for the largest share of approved investments, recording P58.20 billion from 50 projects. Of this amount,
See “April Factory Output,” A2
52.7%
Output surge in the manufacture of coke and refined petroleum products, the biggest contributor to April's manufacturing growth. This marked a sharp turnaround from a 3.4% decline in March.
33.4% Share of factories operating at 90%-100% capacity, indicating a significant portion of manufacturers were running near full utilization.
THE 2050 FOOD CRUNCH:
Why the Philippines must break free from the global rice trap
See “Inflation,” A2
Investors bite as reforms gain ground, DTI reports By Bless Aubrey Ogerio
HE country’s manufacturing output expanded at a faster pace in April, sustaining the double-digit growth recorded in the previous month, according to the Philippine Statistics Authority (PSA). Preliminary results of the Monthly Integrated Survey of Selected Industries (Missi) showed the Volume of Production Index (VoPI)—which measures the actual quantity of goods produced by manufacturers—grew by 12 percent in April. This was faster than the 10.2-percent growth posted in March and reversed the 2.4-percent contraction recorded in April 2025. The PSA said the acceleration was mainly driven by the manufacture of coke and refined petroleum products, which posted a 52.7-percent increase in output during the month, a turnaround from the 3.4-percent decline recorded in March. The agency also cited stronger production in computer, electronic and optical products,
P5.24 billion came from foreign investors while P52.96 billion represented local investments. BOIapproved projects are projected to create 6,226 jobs. Among BOI-approved foreign investments, Singapore was the largest contributor at P2.97 billion, followed by China at P762.80 million and the United States at P489.35 million. The energy sector, including renewable energy projects, remained the biggest investment magnet during the quarter, accounting for P29.58 billion or 23.48 percent of total approved investments. Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said the first-quarter results indicate sustained investor interest in the country and reflect the impact of government efforts to improve the business climate. “This strong first-quarter performance sets the tone for sustained foreign investment inflows in the months ahead, driven by ongoing reforms, improved ease of doing business, and proactive investment promotion,” Rodolfo said.
IRRI scientist Dr. Jauhar Ali and Tao Corp. executive Julio Sy Jr. during a forum on rice security and hybrid rice innovation hosted by Tao Corporation, where experts warned of global supply risks and called for modernized farming systems. JOEL C. PAREDES
By Joel C. Paredes
‘T
HERE may come a time when nobody can share a single bowl of rice.” This was one of the grim global warnings from a leading International Rice Research Institute (IRRI) scientist regarding food security beyond 2050—unless the Philippines, a major riceimporting country, seriously addresses its food staple by adopting modern technologies, especially hybrid rice. While some might view this narrative as self-serving for the institute, Dr. Jauhar Ali emphasized that hybridization is already paving the way for high-yielding rice varieties—ranging from climate-resilient to “green super” hybrid rice varieties. This was also the focus of a corporate forum for agri-
cultural stakeholders recently hosted by the Tao Corporation, which presented this outlook as a direct challenge to other agriculture industry stakeholders to begin transforming rice farming into a viable, modern business for the future.
The geopolitical trap
THE IRRI scientist identifed structural traps binding local food security, citing recent global data mapping out an intensely volatile and consolidated global rice trade. While the world’s gross rice production registers at a seemingly massive 563 million tons, Dr. Ali pointed out that a meager fraction—only about 60 million tons—is actually traded on the open global market. The vast majority is reportedly consumed See “Global Rice Trap,” A2
PESO EXCHANGE RATES n US 61.6350 n JAPAN 0.3853 n UK 82.7635 n HK 7.8676 n CHINA 7.8676 n SINGAPORE 48.0135 n AUSTRALIA 43.9642 n EU 71.5952 n KOREA 0.0402 n SAUDI ARABIA 16.4172 Source: BSP (June 5, 2026)