March inflation seen to slow to 2% on lower food, transport costs

Analysts anticipate that inflation in the Philippines further slowed in March due to decreasing food prices and reduced transportation expenses.

A BusinessWorld poll of 18 analysts yielded a median estimate of 2% for the March consumer price index (CPI), which would be the slowest monthly inflation in six months.

Rizal Commercial Banking Corp. chief economist Michael Ricafort expects March inflation to be around 1.9 percent, citing improved agricultural output due to better weather conditions and lower importation costs.

He added that rice prices must have continued to decline amid the implementation of a lower tariff on imported rice at 15 percent from 35 percent, with world rice prices at the lowest in more than three years.

Agriculture Secretary Francisco Tiu Laurel Jr. stated that rice prices in local markets have declined to P45 per kilo from a peak of P64 per kilo.

Ricafort also noted that prices of other commodities have decreased as China's economic slowdown weakens demand for various goods.

If these estimates are accurate, the March inflation rate would be the slowest recorded in almost five years, since May 2020.

The Philippine Statistics Authority is scheduled to release the official March inflation data on April 4.