Moody's: War spells inflation, trade problems

RISING global commodity prices due to the ongoing conflict in the Middle East pose a “significant” risk to the Philippines, as this could push up both consumer and producer inflation and widen trade gap, according to Moody's Analytics.

- BY ANDREA E. SAN JUAN X@andreasanjuan

In an email sent to the BusinessMirror on Monday, Moody's Analytics economist Sarah Tan pointed out that the ongoing conflict in the Middle East has introduced “renewed uncertainty” into the Philippines's economic outlook, particularly through higher oil and energy prices.

“For the Philippines, which imports more than 50 percent of its domestic energy needs, rising global commodity prices pose a significant risk,” Tan told this newspaper.

She explained that higher oil and energy prices would likely push up both consumer and producer inflation, increasing import costs and widening the trade deficit.