diff --git a/package/confd/confd.mk b/package/confd/confd.mk
index 80b24e9f..70f4b8e9 100644
--- a/package/confd/confd.mk
+++ b/package/confd/confd.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-CONFD_VERSION = 1.1
+CONFD_VERSION = 1.2
 CONFD_SITE_METHOD = local
 CONFD_SITE = $(BR2_EXTERNAL_INFIX_PATH)/src/confd
 CONFD_LICENSE = BSD-3-Clause
diff --git a/src/confd/configure.ac b/src/confd/configure.ac
index 9f8ea983..639ba8b6 100644
--- a/src/confd/configure.ac
+++ b/src/confd/configure.ac
@@ -1,6 +1,6 @@
 AC_PREREQ(2.61)
 # confd version is same as system YANG model version, step on breaking changes
-AC_INIT([confd], [1.1], [https://github.com/kernelkit/infix/issues])
+AC_INIT([confd], [1.2], [https://github.com/kernelkit/infix/issues])
 AM_INIT_AUTOMAKE(1.11 foreign subdir-objects)
 AM_SILENT_RULES(yes)
 
@@ -15,6 +15,7 @@ AC_CONFIG_FILES([
 	share/migrate/Makefile
 	share/migrate/1.0/Makefile
 	share/migrate/1.1/Makefile
+	share/migrate/1.2/Makefile
 	src/Makefile
 	yang/Makefile
 ])
diff --git a/src/confd/share/migrate/1.2/10-ietf-interfaces-phys-address.sh b/src/confd/share/migrate/1.2/10-ietf-interfaces-phys-address.sh
new file mode 100644
index 00000000..97233aae
--- /dev/null
+++ b/src/confd/share/migrate/1.2/10-ietf-interfaces-phys-address.sh
@@ -0,0 +1,15 @@
+#!/bin/sh
+# Migrate phys-address -> custom-phys-address with static option
+
+file=$1
+temp=${file}.tmp
+
+jq '(
+    .["ietf-interfaces:interfaces"].interface[] |=
+    if has("phys-address") then
+        .["infix-interfaces:custom-phys-address"] = { "static": .["phys-address"] } | del(.["phys-address"])
+    else
+        .
+    end
+)' "$file" > "$temp" &&
+mv "$temp" "$file"
diff --git a/src/confd/share/migrate/1.2/Makefile.am b/src/confd/share/migrate/1.2/Makefile.am
new file mode 100644
index 00000000..5171e8b4
--- /dev/null
+++ b/src/confd/share/migrate/1.2/Makefile.am
@@ -0,0 +1,2 @@
+migratedir          = $(pkgdatadir)/migrate/1.2
+dist_migrate_DATA   = 10-ietf-interfaces-phys-address.sh
diff --git a/src/confd/share/migrate/Makefile.am b/src/confd/share/migrate/Makefile.am
index 62da7622..df1d8ba9 100644
--- a/src/confd/share/migrate/Makefile.am
+++ b/src/confd/share/migrate/Makefile.am
@@ -1,2 +1,2 @@
-SUBDIRS             = 1.0 1.1
+SUBDIRS             = 1.0 1.1 1.2
 migratedir          = $(pkgdatadir)/migrate