UMVA has learned that the Development Budget Coordination Committee has dramatically reshaped the nation’s fiscal roadmap after a sluggish first quarter and a surge in inflation sparked by turmoil in the Middle East.
In a high‑stakes session with President Ferdinand R. Marcos Jr., the committee scrapped previous assumptions and redrew targets, acknowledging the volatile mix of slowing growth, soaring prices, a weakening peso and volatile oil markets.
“The DBCC met to recalibrate assumptions based on the latest developments on economic growth, inflation rates, foreign exchange and oil prices,” a palace spokesperson explained, hinting at a painstaking review that will feed directly into the 2027 budget blueprint.
Inflation has erupted to 7.2% in April, the steepest climb in three years, while the peso teetered near historic lows, closing at a record‑breaking P61.75 per dollar on May 19 and barely slipping to P61.746 the following Monday.
Meanwhile, President Marcos sat down with Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr., who laid out the central bank’s relentless focus on taming inflation, tracing its surge to the Middle East conflict and flagging the looming threats of higher food, fuel and transport costs.
With the Monetary Board slated to convene on June 18, officials are weighing a more aggressive policy stance, warning that unchecked price pressures could shatter inflation expectations and destabilize the economy.
