Inflation slows to 2% in March, food and fuel costs ease

Inflation likely slowed further in March due to easing food prices and reduced fuel costs, with analysts predicting a median estimate of 2% inflation for the month, lower than February's 2.1%, marking the slowest monthly increase since September.

The Bangko Sentral ng Pilipinas (BSP) projects headline inflation within the range of 1.7 percent to 2.5 percent in March, citing higher electricity rates and fish prices but expecting these to be offset by lower rice, fruits, and vegetables prices due to favorable domestic supply conditions and peso appreciation.

Manila Electric Co. (Meralco) raised electricity rates by P0.2639 per kilowatt-hour (kWh), while the price of a kilo of round scad (galunggong) increased slightly compared to February, but rice prices have been on a downtrend due to government interventions and lower global prices.

The Philippine Statistics Authority reported that rice inflation decreased to 4.9% in February from 2.3% in January, with the Department of Agriculture slashing tariffs on rice imports and releasing buffer stocks at subsidized prices to ensure food security.

Despite these measures, the BSP noted that upward price pressures for March include higher electricity rates and fish prices, but expects lower prices of rice, fruits, and vegetables to offset these increases.