PBBM Warns of Stagflation Risk as Inflation Hits 7.2%, Growth Slows to 2.8% | Business 360

Added: 2026-05-20

[00:00:00]The president and several economists are warning about the risk of stagflation where high prices, slow growth, and weak jobs hit the country all at once.

[00:00:11]Chesca Sulit has [music] these details.

[00:00:15]As to the economy the concern that we have we is the concern about stagflation which is when the the GDP growth is stagnant but inflation continues to to to to increase. President Ferdinand Marcos Jr. has once again raised the alarm over the country's stagflation risks. At a round table with Japanese media, Marcos warned that the impact of the Middle East conflict has spilled over to the rising prices of goods and services at home. The crisis has led to a spike in fuel prices over the past months affecting several sectors including transportation, manufacturing, agriculture, and MSMEs. The latest data from the Philippine Statistics Authority has shown that the country's inflation rate surged to 7.2% in April and economic growth slowed to 2.8% for the first quarter of the year. With these figures, economist Jonathan Ravelas says that the country is potentially at risk of stagflation but stresses that we are not there yet. Stagflation is characterized by high inflation, high unemployment, and slow economic growth.

[00:01:28]At the start of the year we were ready to spend.

[00:01:32]Things were getting brighter then suddenly things changed.

[00:01:36]Now, it's very difficult to convince household to spend when prices are going up where every month prices of goods gasoline, and electricity continues to go up. De La Salle University economists have also warned that the Philippine economy is decelerating. In the DLSU report on the Philippine economy for May 2026, academics now project a growth rate of 3.11% for this year. That's lower than last year's 4.4%.

[00:02:11]The experts also warned that the rising cost of fertilizer could drive up agricultural production costs, which may eventually lead to higher prices for consumers. Meanwhile, the peso is also expected to depreciate further in 2026.

[00:02:26]The economists say the country's currency may hit a record low of 63.5 pesos against the US dollar in August.

[00:02:34]For Avelas, the country's economic growth may still improve. He projects that government spending may pick up in the second part of this year, addressing the deceleration. As of now, he says consumers have shifted to a cautious recovery mode as Filipinos opt to be selective with buying in order to save up their money. Cherie Sweet, Billionaire News Channel.