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Overseas news
Oil prices continued rising on Thursday as attacks on oil tankers in the Gulf continued. The closure of the Strait of Hormuz, which is one of the world’s most significant oil pathways, was another factor.
In the US, Federal Reserve Bank of Richmond President Tom Barkin said that high inflation and strong employment data may cause the US Federal Reserve (the Fed) to alter the course of its monetary stance.
“Monetary stance” refers to the direction of a central bank’s policy for key rates. It may choose to raise (a “tight policy”) or lower (a “loose policy”) these rates.
Meanwhile, China set its economic growth target for 2026 at 4.5%-5%, its lowest in years. This comes as it shifts its growth strategy toward being less export-reliant and more consumption-driven.
While China has focused on manufacturing for export for many years, recent factors such as efforts to raise local production in other countries and US tariffs may be causing it to rethink its approach.
Local developments
Headline inflation in the Philippines accelerated to 2.4% in February. The figure was driven by a faster rise in prices of rentals, electricity, and food products.
Headline inflation looks at price changes in the Consumer Price Index (CPI). This is a standard “basket” of goods and services that a typical family spends on.
Also, the Philippine government plans to procure at least 1 million barrels of oil to ensure domestic supply amid ongoing Middle East situation.
Since fuel is a major factor in the cost of goods and services, supply issues have the potential to cause sudden price spikes.
Oil supply and prices may cause some uncertainty in many sectors, but it is unknown right now how the situation will continue to unfold. For now, avoiding big changes to your investments and continuing your strategy might be the right decision for you.
