Duterte adviser amid Ukraine-Russia crisis: We should brace for price increases

The intensified conflict between Russia and Ukraine will bring about increases in the prices of commodities, Presidential Adviser for Entrepreneurship Joey Concepcion said Friday.

“We should brace for price increases. Inflation will go up,” Concepcion said during the Laging Handa briefing.

On Thursday, Russian President Vladimir Putin launched a military operation in Ukraine with explosions heard across the country.

Concepcion said the increase in the price of crude to over $100 per barrel will cause commodities prices to increase.

He added that since Ukraine supplies 25% of the world’s wheat, it might cause increase in the price of local bread.

“Epekto niyan dito sa Pilipinas ‘yung presyo ng pandesal,” the presidential adviser said.

“The shortage of Ukrainian wheat being 25% supplier in the world, of course will affect prices… That is a concern,” he said.

Concepcion said that price increase cannot be entirely absorbed by consumers, thus businesses have to squeeze their margins.

The presidential adviser reiterated his push to de-escalate the quarantine classification in Metro Manila and other major economic regions to Alert Level 1.

“Opening up of the economy will give more strength to our micro, small, and medium enterprises. Whatever happens in the Ukraine-Russia crisis, a strong Philippine economy can weather that,” Concepcion said.

“There's no other way to do it but reopen our economy so it can withstand any external pressure,” he added.

Analysts earlier told the public to brace for higher oil prices amid the Ukraine-Russia tension. They said the average price per liter of gasoline may increase from P68 to P77 while that of diesel may go up from P59 to P73.

The cost of the benchmark Brent crude has gone up to over $102 per barrel since 2014 just as Russia attacked Ukraine.

Analysts expect the price of crude to go up to $120 per barrel in the coming weeks.—AOL, GMA News