PH inflation slows to 7.6% in March

MANILA, PHILIPPINES — The headline inflation in the Philippines slowed from 8.6% in February to 7.6% in March. 

According to the Philippine Statistics Agency (PSA), this downtrend was mainly brought by three commodity groups — food and non-alcoholic beverages; transport; and housing, water, electricity, gas, and other fuels. 

Food and non-alcoholic beverages recorded a 9.3%  inflation rate last month from 10.8% in February. Inflation in transport services, meanwhile, decreased from 9% to 5.3%.

Similarly, housing, water, electricity, gas, and other fuels recorded a 7.6% inflation rate from 8.6% in February 2023.

Other commodity groups contributing to slower inflation include health and information (-3.9%) and communication commodity groups (-0.7%). 

In contrast, higher inflation rates were observed in alcoholic beverages and tobacco (12.2%); clothing and footwear (5%); recreation, sport, and culture (4.6%); restaurant and accommodation services (8.3%); personal care, and miscellaneous good and services (5.6%). 

PSA added that the average inflation rate of the Philippines for Q1 2023 stood at 8.3%. 

Earlier this month, the Bangko Sentral ng Pilipinas raised key interest rates by 25 basis points (bps) to anchor inflation expectations and achieve a return to the 2.0- to 4.0-per cent inflation target.