The ongoing conflict has created economic shockwaves, leaving the oil supply hanging in the balance and price pressures threatening our collective affordability.

Yes Virginia, there’s no stopping inflation from rearing its ugly head. It could stay with us indefinitely depending on the resolution of the conflict—a market condition the monetary authorities are strongly averse to, as it triggers weakness in the peso and forces interest rates upward.

Even prior to the massive upward adjustment in pump prices early this week, the cost of food at the Salcedo weekend market went up significantly last Saturday. Most sellers warned us that incremental increases are now inevitable.

With crude oil prices soaring to a four-year high, the Palace is searching for measures to tame inflationary pressures, looking to mitigate the domino effect through the temporary suspension of excise taxes on petroleum products.

The Department of Agriculture, on the other hand, is seemingly taking a different path with its plan to impose a higher levy on imported artificial sweeteners and sugar substitutes, moving up from the current five percent tariff.

This initiative is designed to curb the heavy importation of artificial sweeteners, making them less competitive in order to protect the domestic sugar industry. This comes on top of the decision to extend the ban on raw and refined sugar imports until the end of the year.

From what I’ve gathered, the Department of Finance (DOF) is backing this initiative. The move follows a noted surge in the importation of artificial sweeteners; demand for aspartame and high-fructose corn syrup has reached levels equivalent to over 500,000 metric tons of raw sugar. This has significantly dampened manufacturers’ appetite for locally produced sugar—hence, the push for a higher tariff.

I fully subscribe to supporting domestic industries. However, we must ensure that solutions do not unintentionally hike the price of food, which is already expected to climb.

A tariff hike on artificial sweeteners will raise production costs for many food and beverage items. These incremental expenses will be passed on to us, the consumers, making everyday goods even more expensive.

For me, policy choices must be carefully designed to avoid introducing new price drivers into our grocery baskets. Yes Virginia, this hits close to home because soda with artificial sweetener is a staple in my own basket.

Simply put: a higher tariff on imported artificial sweeteners is another inflationary driver.

Although a specific new tariff level has yet to be set, I believe this is not the opportune time to adopt such a policy change—particularly when we are already in such a tight bind. Policy efficiency must always be balanced with economic impact.