DOF: Uninterrupted supply chain key to low inflation

The Department of Finance (DOF) stated that maintaining an uninterrupted supply chain during the COVID-19 lockdown is crucial for keeping inflation low.

Finance Undersecretary Gil S. Beltran noted that nonfood commodity prices decreased in March due to lower global fuel prices, contributing to a year-on-year headline inflation of 2.5 percent.

This inflation rate is the lowest recorded this year, with the three-month average remaining within the government's target of 2-4 percent.

Despite the overall easing, food prices, particularly for fish and vegetables, saw an increase in March, although rice prices continued their downward trend.

The uninterrupted decline in rice prices for 11 months is attributed to the removal of import restrictions under the Rice Tarrification Act.

Inflation rates for goods excluding food and energy also decreased, suggesting a further easing of inflation in the coming months.

Beltran emphasized the importance of ensuring that the supply chain for essential goods is not disrupted, even while adhering to quarantine measures.