BACOLOD City – The escalating conflict between Israel and Iran is expected to have serious economic repercussions globally, with local business leaders warning it could contribute to hyperinflation and significantly impact the country’s economic growth.
Frank Carbon, Vice President for Government Affairs of the Metro Bacolod Chamber of Commerce and Industry (MBCCI), explained that hyperinflation refers to an extremely rapid and out-of-control rise in prices of goods and services over a defined period.
“Hyperinflation is generally defined as inflation rising at more than 50 percent per month,” Carbon said, warning of its possible effects should the geopolitical tension worsen.
To help cushion the impact, MBCCI is advising households and small businesses to review their financial habits and prepare for possible price surges. Among the practical steps recommended is preparing a detailed weekly list of expenses.
“Go through the list line by line. Identify expenses that can be deferred until the budget allows or consider cutting them off entirely,” Carbon said.
He also suggested switching to cheaper alternatives where possible and reducing the consumption of essential utilities such as electricity, water, and rented space.
He emphasized the importance of buying budget or downsized packs to avoid wasteful consumption and to help manage resources more effectively.
“Prepare your plans and don’t just sit in the sheepfold,” Carbon said, stressing the urgency of financial preparedness.
Carbon also warned that a potential closure of the Strait of Hormuz — a vital global oil shipping route — could severely disrupt fuel supply chains, which would further drive up fuel prices and create a domino effect on the cost of living.
“If fuel prices go up, food prices — already on the high side — will rise even more. And then other costs will follow: power, water, and transportation,” he added.
The MBCCI continues to monitor the situation and urges the public to remain proactive in managing their finances amid global uncertainties./PN
