Inflation – the rate of increase in consumer prices – in the country further slowed for the fifth straight month in March as costs of food as well as beverages continued to drop from its highest levels last year, the Philippine Statistics Authority reported yesterday.
Based on the PSA report, the country’s headline inflation clocked in at 3.3 percent last month, weaker than the 3.8 percent in February and significantly slower compared with 4.3 percent in the same period last year.
The March inflation rate is the lowest since the 2.7 percent level registered in December 2017 and well within the Bangko Sentral ng Pilipinas forecast for the month of 3.1 percent to 3.9 percent.
Last month’s figure brought the country’s first quarter average inflation rate at 3.8 percent, within the Duterte administration’s target for 2019 of three to four percent.
“The downtrend was primarily due to slower annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 3.4 percent,” PSA said.
In March, inflation of alcoholic beverages and tobacco was seen at 10.8 percent while housing, water, electricity, gas and other fuels, and furnishing, household equipment, and routine maintenance of the house, both at 3.4 percent.
Health registered a 3.9 percent inflation rate last month, communication at 0.3 percent; and restaurant, miscellaneous goods, and services at 3.7 percent.
Excluding selected food and energy items, core inflation slid further to 3.5 percent from 3.9 percent in April.
Inflation of corn dropped further by 2.4 percent, while slowdowns in the annual increments were also recorded in rice (1.4 percent), fish (4.8 percent), oils and fats (3.8 percent), fruits (1.7 percent), vegetables (four percent); and sugar, jam, honey, chocolate, and confectionary (7.1 percent).
In Metro Manila, inflation decelerated further to 3.2 percent from 3.8 percent in April and 5.2 percent in the same month last year.
Areas outside the National Capital Region posted slower inflation at 3.4 percent, down from 3.8 percent in the previous month, and 4.1 percent in March 2018.
Malacañang said yesterday that the government will remain vigilant to maintain the prices of goods as the country’s inflation rate further eased.
Presidential spokesperson Salvador Panelo said that the government is pleased with the further deceleration of the inflation rate, saying this is the effect of the government’s efforts.
“The administration’s resolve to cushion the impact of inflation has resulted in the downward path of inflation for five straight months,” he said.
“We are confident that this slide would continue further for the rest of the year as President Rodrigo Roa Duterte’s signing of Republic Act No. 11203 last February is expected to further ease inflation. Our economic managers expect rice prices to go down and even cut inflation by 0.5 to 0.7 percentage point this year,” he added. (Chino Leyco and Argyll Geducos)
