Philippine Inflation Eases to 4.5% in March Amid Supply Challenges

The Philippine Statistics Authority (PSA) reported that the country's headline inflation rate eased to 4.5% in March, down from February's 4.7%. This marks a slowdown after five consecutive months of acceleration.

Despite easing slightly, March's figure is still above the Bangko Sentral ng Pilipinas' (BSP) target range of 2-4%, and higher than last year's 2.5% rate.

The decline in food prices was mainly responsible for the slower inflation; vegetables, fruits, and fish saw price decreases due to better weather conditions and improved harvest seasons.

However, meat prices, particularly pork, remain a significant driver of inflation at 20.9%, reflecting ongoing supply issues.

Authorities are emphasizing measures such as increasing imports, considering tariff adjustments, and promoting digital platforms for food distribution to stabilize prices further.

The BSP projects that inflation will return within the target range in 2022 as supply-side pressures ease.