BSP: Philippine inflation to exceed 4% target until 2027

The Bangko Sentral ng Pilipinas (BSP) expects the country’s inflation rate to breach its 4 percent target until next year due to consumer price shocks from the Middle East war.

‘The inflation outlook has deteriorated amid the ongoing conflict in the Middle East. Higher global oil and fertilizer prices have begun feeding through to domestic fuel and food prices. At the same time, core inflation has continued to rise, pointing to a broadening of underlying price pressures,’ the BSP said on Thursday.

This was as the central bank announced a 25-basis point increase in its policy interest.

‘The latest BSP projections now indicate a higher inflation path. Average headline inflation is seen to breach the 4-percent tolerance ceiling in both 2026 and 2027,’ it said.

‘Inflation expectations have also risen further, heightening the risk of de-anchoring from the target due to more persistent inflationary pressures.’

In March, Philippine inflation already surged to 4.1 percent, from 2.4 percent in February, as the Middle East war caused oil price shocks and unprecedented local currency depreciation.

United Airlines hiking fares 15-20% on jet fuel spike

United Airlines has implemented broad-based fare hikes of 15 to 20 percent as it seeks to offset the surge in gasoline prices while protecting profits, executives said Wednesday.

The big US carrier, which has also trimmed its 2026 flying capacity by 5 percent, aims to recover 100 percent of the added costs from the jet fuel price spike due to the Middle East war.

Chief Executive Scott Kirby described oil prices as ‘incredibly volatile,’ but said the company’s plan is based on the assumption that ‘fuel may remain higher for longer.’

While the airline has yet to see pullback from customers due to high fares, United may cut back additional flights in 2027 if demand ebbs, Kirby said.

United on Tuesday reported higher first-quarter profits but lowered its full-year profit forecast due to jet fuel costs. United expects fuel prices to average $4.30 per gallon in the second quarter, up 55 percent from the average in the first quarter.

Other carriers too

Other airlines have also announced fare increases and capacity curtailments in response to the surge in oil prices since the US-Israel siege on Iran launched on Feb. 28.

The head of the International Air Transport Association on April 17 called on authorities to put ‘well-coordinated plans in place’ in case of jet fuel rationing.

Worries about jet fuel availability are more acute in Asia and Europe compared with the United States, said United Chief Financial Officer Michael Leskinen.

‘We don’t see a lack of availability being an issue at all in the US. It’s a price issue,’ Leskinen said.

‘However, even in Europe and Asia, as we sit here today, we think it’s a price issue not an availability issue,’ said Leskinen adding that ‘spot outages’ could happen in Europe and Asia if the conflict drags on.

Nickel Asia to buy 20% of Kazakhstan copper mine

Nickel Asia Corp. (NAC) is venturing into Kazakhstan by acquiring a 20-percent stake in a company with interest in a copper mine, seeking to expand its footprint across Asia.

The listed mining company signed an agreement with Silk Road Resources Ltd., a private entity incorporated under the Astana International Financial Centre (AIFC), a financial hub in Astana and East Copper Production LLP.

NAC did not disclose the acquisition cost when asked for additional information, but only said the deal involved acquiring a 20-percent stake in East Copper, the sole legal and beneficial owner of GRK MLD LLP.

GRK, in turn, holds subsoil use rights for the Karchiga copper mine in Kazakhstan. The copper deposit is situated within the Central Asian Orogenic Belt, a globally recognized highly mineralized metallogenic domain.

GRK has an annual production capacity of 8,500 tons of copper sulfide concentrate and 2,000 tons of copper cathode.

Robust industry

Data from the AIFC showed that Kazakhstan’s mining sector contributed more than 12 percent of the country’s gross domestic product, amounting to 16.1 million Kazakhstani Tenge. It accounted for one-third of exports.

AIFC also noted that Kazakhstan is one of the world’s top 10 copper producers, holding a market share of 3.2 percent.

NAC said the transaction supports a broader goal of diversifying its business and growing its presence across the region.

‘This investment supports the company’s strategy to expand market capitalization and earnings by evolving beyond nickel into a diversified natural resources development platform with a growing presence across Asia,’ the firm said in a disclosure on Wednesday.

Due diligence

The sale is subject to the completion of the due diligence on East Copper and GRK, along with other closing conditions and the necessary regulatory approvals.

NAC reported an attributable net income of P6.27 billion in 2025, a 312 percent surge from a year ago, due to strong export prices and higher sales.

Revenues from saprolite and limonite ore rose by 39 percent to P27.25 billion.

DPWH exec: Fund release for ‘ghost’ project illegal

The Department of Public Works and Highways (DPWH) released funds amounting to at least P92.8 million for a flood control project in Pandi, Bulacan, linked to former Sen. Ramon ‘Bong’ Revilla Jr. and several others, despite alleged irregularities in billing documents, an official told the Sandiganbayan’s Third Division on Wednesday.

Testifying at the hearing for the malversation case against Revilla and his coaccused, DPWH finance director Genevieve Cuaresma confirmed alleged irregularities in the monthly certificate of payment and Statement of Work Accomplished (Sowa) for the project.

Cuaresma said the documents were not signed by former DPWH assistant district engineer Brice Hernandez and district engineer Henry Alcantara.

Hernandez is among the coaccused in the case, while Alcantara is a state witness.

The lack of signatures, according to Cuaresma, made the documents ‘incomplete, illegal,’ adding that the payments should not have been released as a result.

The Sowa also declared the project ‘95.17 percent’ complete but when Third Division chair Associate Justice Karl Miranda inspected the site last week, there were no visible structures aside from several steel sheet piles.

4 nabbed for selling puffer fish in Camarines Sur

Four vendors were arrested on Wednesday after authorities seized more than 66 kilograms of puffer fish being sold at the public market in Nabua town in Camarines Sur.

The Bureau of Fisheries and Aquatic Resources in Bicol (BFAR-5), in coordination with the Nabua police, inspected the public market at 6 a.m. This led to the arrest of the vendors for violating Fisheries Administrative Order No. 249, series of 2014, which bans the sale and distribution of puffer fish.

Wheng Bricia-Briones, BFAR Bicol information officer, said violators can be penalized with imprisonment from two months to a year, and a fine of not less than P10,000.

She said seven kilograms of puffer fish were worth P1,400; another seven kilograms were worth P1,540; 7.02 kilograms were worth P1,404; and 45 kilograms were seized, valued at P45,000.

Administrative charges will be filed against the four suspects.

The confiscated fish were brought to the BFAR regional office for proper disposition.

The agency reiterated its warning against the sale, whether fresh or processed, and consumption of pufferfish, locally known as ‘butete,’ citing its potent toxin that can cause serious illness or, worse, may lead to death.

Philippine government budget deficit widens to P349.7B in March

The national government’s budget deficit widened in March by nearly 2 percent from a year earlier to P349.7 billion, on higher energy spending amid the Middle East war.

According to the Bureau of the Treasury (BTr), the Marcos administration spent P654.8 billion during the month, up 5.23 percent year on year.

Spending was driven in part by allocations to the Department of Energy, which received P20 billion to fund measures aimed at cushioning the impact of the energy crisis.

Revenues, meanwhile, rose 9.25 percent to P305.1 billion, supported by gains in both tax and nontax collections.

The Bureau of Internal Revenue and the Bureau of Customs contributed P187.3 billion and P84.8 billion, respectively.

Nontax revenues surged 45.54 percent to P28.5 billion, boosted by the early remittance of dividends from government-owned and controlled corporations.

For the first quarter, the government’s budget deficit narrowed by 20.3 percent to P355.5 billion.

Cops, soldiers discover arms cache in Butuan City

Joint operating troops from the Police Regional Office in Caraga (PRO-13) and the Philippine Army uncovered an arms cache believed to belong to the New People’s Army (NPA) in Barangay Antongalon, Butuan City, on Monday.

Police Brig. Gen. Marcial Mariano P. Magistrado IV, director of PRO-13, said the discovery was made by personnel of Butuan City Police Station 4, the 29th Infantry Battalion, and the 25th Ordnance Explosive Disposal (EOD) Team of the Philippine Army after acting on a report from a concerned citizen.

Recovered from the site were five M76B rifle grenades, one M76C rifle grenade, one M76A-1 rifle grenade, two short plastic magazines for M16 rifles, four short alloy magazines for M16 rifles, one long magazine for an M16 rifle, two M60 barrels with defaced serial numbers, one handheld radio, and one Alcatel keypad cellular phone.

‘I commend our citizens for helping maintain peace and order in the region, particularly through their vigilance in reporting the presence of firearms and explosives. Our operatives are still conducting an investigation into the origin and intended use of the recovered items, as well as the individuals or groups responsible for storing them in the area,’ Magistrado said.

Authorities said the five M76B rifle grenades, one M76C rifle grenade, and one M76A-1 rifle grenade were deemed hazardous to handle and were immediately disposed of through controlled detonation at the site by the 25th EOD Team.

Meanwhile, the two recovered M60 barrels were turned over to the Butuan City Forensic Unit for ballistic examination.

5 alleged NPA rebels arrested in Negros Occidental

Five alleged members of the New People’s Army (NPA) were arrested during a warrant service operation in Talisay, Negros Occidental, on Wednesday, following a recent deadly clash in the province.

The military operation was conducted along the Circumferential Road, Barangay Matab-ang of Talisay City, Negros Occidental, on Wednesday, the Police Regional Office Negros Island Region (PRO-NIR) said on Thursday.

Operatives were serving an arrest warrant for attempted murder against a suspect identified as alias ‘Glem’ when four additional individuals were apprehended after being found in possession of firearms and explosives, it said.

The arrested individuals were identified as alias ‘Glem,’ 48, of Zamboanga Sibugay and squad leader of the North Negros Front (NNF); alias ‘Dan,’ 25, of Himamaylan City, squad leader of Central Negros 2 (CN2); alias ‘Jud,’ 34, of San Carlos City; alias ‘Ju,’ 26, of Murcia; and alias ‘Je,’ 57, of Bacolod City.

Both ‘Glem’ and ‘Dan’ are listed on the Periodic Status Report (PSR) of wanted personalities, the police said.

Authorities said some of the suspects reportedly had visible body wounds, which led them to believe the group was previously involved in an armed encounter with troops of the 79th Infantry Battalion (79IB) in Toboso, Negros Occidental, on Sunday.

Authorities recovered four short firearms, live ammunition, and explosive devices from the suspects, the PRO NIR said.

The operation was led by the Regional Intelligence Division (RID) of PRO-NIR in coordination with the Criminal Investigation and Detection Group Regional Field Unit (CIDG-RFU), the Regional Intelligence Unit (RIU), the Regional Mobile Force Battalion (RMFB), the 6th Special Action Battalion of the PNP Special Action Force (6th SAB, PNP SAF), the Talisay City Component Police Station (Talisay CCPS), and the 79th Infantry Battalion (79IB) of the Philippine Army.

Decoding the Moonstar88 DNA

If you were in high school or college in the 2000s, chances are there was at least one guitar-toting student in your class-and what are the odds that when lunch break came, the song they played to show they had finally mastered their first barre chord was ‘Torete’ by Moonstar88?

It’s infectious and forgiving to play, and the payoff is worth more than you would expect. Before you knew it, everyone was singing their hearts out about unrequited love at high noon, because why not?

It’s hard to put into words exactly what makes Moonstar88 sound like Moonstar88, guitarist Herbert Hernandez says. But hard-pressed to give a reason, guitar-driven simplicity has got to be one of them.

Nothing too complex

They’re ‘not the most technical of musicians,’ they concede, but they have a keen ear for lyrics that hit from the very first line. And when lead vocalist Maysh Baay breathes life into them-coupled with Hernandez’s guitar work and the distinct ‘klangklang’ of drummer Bon Sundiang’s snares-the sound they create is unmistakably theirs.

‘Alam mong jinam ng banda ‘yong kanta sa acoustic guitar. Isa na ring sigurong dahilan eh hindi complex ‘yong chords at arrangement,’ Hernandez tells Lifestyle Inquirer. ‘There are those who concentrate on the sound or the hook-and there’s nothing wrong with that-but we focus more on the lyrics and the story we want to tell.’

It may not have been the original intention, but their instinct not to overcomplicate things leaves room for another defining element of the ‘Moonstar88 DNA’: the vocals. While Baay has a fuller, sturdier sound, there’s still a sweetness in her tone that harks back to the band’s early days with Acel Bisa’s whispery and fragile singing-the better to convey the sense of longing the music often evokes.

And this is something that has remained constant throughout the band’s 27-year musical journey-from ‘Torete’ and ‘Sulat’ to ‘Migraine’ and ‘Gilid.’ Hernandez and Sundiang can veer ‘super far out’ from what fans would expect in terms of production, but Baay’s singing always brings it back to center.

‘Alam namin na, at the end of the day, kapag kumanta at nag-record na si Maysh, ‘yon na ‘yon,’ Sundiang says.

‘Alam namin na, at the end of the day, kapag kumanta at nag-record na si Maysh, ‘yon na ‘yon’

Organic interplay

Fair enough-sound is better heard than explained. At the group’s recent contract signing with EMI Records Philippines, a sublabel of Universal Music Group, they let their music do the talking-playing two new singles ahead of their respective releases as part of their upcoming 13-track, all-original album.

‘Goma,’ an upbeat pop-rock anthem with a driving rhythm, speaks of being stretched to the limit but inevitably bouncing back into form. As its title suggests, ‘Kape Tayo’ is a tender midtempo ballad that yearns for warmth and companionship, ‘sa tamis at sa pait.’ (The band members aren’t much of drinkers, they joke.)

And if these songs are a preview of their upcoming album-which will include four compositions by ‘Torete’ composer Darwin Hernandez, who’s marking his return to writing for the band after a long while-then ‘Moonstareros’ can expect something fresh but still close to home.

‘There’s something new because we’re now with EMI and we have new sounds or stories to tell. There’s something gifted kasi maraming regalong kanta sa ‘min si Darwin. But at the same time, the magic of our signature sound still comes out,’ Baay says of the new material, which will also feature collaborations with Jay Contreras of Kamikazee, Rye Sarmiento of 6Cyclemind, and Jazz Jorge of Gracenote.

Although the said tracks sound steadier than senti, with dashes of grit and urgency here and there, they still rely on the organic interplay of actual instruments and the band’s knack for melodies that spark LSS (last song syndrome). The topics may essentially be about love, but not from the same shade or perspective they have already explored before.

Happy and confident

There’s nothing drastic here that immediately suggests they’re trying to jump onto a trend-and that’s precisely the point. More than their music’s sincerity and unpretentiousness, it’s their disinterest in chasing whatever is in vogue that makes their work timeless and relatable across generations.

‘If you look at it, hindi siya ‘yong uso, pero nandiyan lang siya lagi,’ Hernandez points out.

Case in point: when the VCR for ‘Fortunate Change’ played at Seventeen’s Philippine show last March, a predominantly young audience-maybe sensing similarities in the instrumentation-spontaneously sang ‘Torete.’ This seemingly reflects Moonstar88’s streaming demographics, which show that their Gen Z listeners have already overtaken Millennials.

‘It’s overwhelming na nasa isipan kami ng mga bata,’ Baay says.

Needless to say, Moonstar88 was amused and slightly bemused, but that moment only proves that good music is good music-whether played in a classroom in the 2000s or a K-pop stadium in 2026. ‘That makes us happy and confident to just continue what we love to do,’ Hernandez says.

Nomura sees low risk of Philippine credit rating downgrade

An outright downgrade of the Philippine sovereign credit rating is unlikely unless the war in the Middle East drags on, Nomura Global Markets Research said, adding that growth should rebound as the government accelerates spending.

In a note, Nomura economists Euben Paracuelles and Nabila Amani said the country’s fiscal risks are more manageable than those facing many of its peers that are also under ratings pressure.

On Monday, Fitch Ratings revised its outlook on the Philippines to ‘negative’ from ‘stable,’ signaling that the country’s investment-grade ‘BBB’ rating could be downgraded within one to two years if fiscal conditions fail to improve.

The move followed last week’s setback, when S and P Global Ratings cut its outlook to ‘stable’ from ‘positive,’ dimming hopes that the country could soon secure its first-ever ‘A’ rating from one of the three major credit rating agencies.

Fitch’s rating stands one notch below S and P’s ‘BBB+,’ itself one step short of the coveted ‘A’ level.

Explaining their actions, both agencies pointed to the same challenge: The Philippine government, still reeling from the fallout of a major corruption scandal that paralyzed public spending, is confronting an oil shock with diminished fiscal buffers.

‘As we argued before, a shift to a negative outlook, much less a rating downgrade, by S and P, is unlikely over the next few months, even with its higher credit rating, and we believe it will be the same for Fitch, unless the crisis becomes is significantly prolonged,’ Paracuelles and Amani said.

Review cycle

‘By the next review cycle (which is usually 12 months, unless there are significant developments that warrant an earlier review), the main factors cited by Fitch for a downgrade will likely show some improvements, in our view,’ they added.

Moody’s Ratings, the third major agency, has yet to announce a rating action. But in an April 14 credit opinion, it warned that the conflict in the Gulf region has increased downside risks to the Philippines’ economic outlook by lifting global energy prices and intensifying external cost pressures.

A rating downgrade could mark the country’s first since 2005, when political turmoil and fiscal instability eroded the Philippines’ credit standing.

A lower rating could raise the government’s borrowing costs at a time when it is running a budget deficit to finance development spending.

Infrastructure spending

But looking ahead, Nomura said gross domestic product growth should rebound as the government implements catch-up infrastructure spending and as terms-of-trade pressures ease. This assumes that a US-Iran deal could be made.

The bank forecasts 2026 growth at 5 percent-above Fitch’s 4.6 percent-even after trimming its own projection from 5.3 percent to reflect the energy price shock.

‘We still think the government has a limited appetite to implement blanket fuel subsidies that tend to be difficult to unwind,’ Nomura said. ‘Therefore, the medium-term fiscal consolidation agenda is unlikely to be derailed, even if implemented more gradually to recalibrate for the external shock and evolving domestic economic conditions, in our view.