Inflation fell to 2.5% in March: PSA

April 7, 2020

Headline inflation in the Philippines decelerated further to 2.5 percent in March, from 2.6 percent in the previous month. Inflation in March a year ago was higher at 3.3 percent

The slowdown in inflation in March 2020 was primarily due to transport whose index dropped at an annual rate of 1.8 percent, the Philippine Statistics Authority (PSA) said Tuesday.

Slower annual increments in the indices of alcoholic beverages and tobacco at 18.0 percent; and housing, water, electricity, gas, and other fuels at 1.1 percent, also pushed down the inflation during the month.

Higher annual increases were noted in the following commodity groups:

Food and non-alcoholic beverages, 2.6 percent; Furnishing, household equipment and routine maintenance of the house, 4.2 percent; Communication, 0.5 percent; and Recreation and culture, 1.6 percent.

Excluding selected food and energy items, core inflation slowed down further to 3 percent in March 2020. In the previous month, core inflation was posted at 3.2 percent, and in March 2019, 3.5 percent.

For food, its annual rate at the national level climbed to 2.6 percent during the month. In the previous month, food inflation was 2.1 percent, and in March 2019, 3.1 percent.

The following food groups registered higher annual mark-ups during the period compared with their annual growth rates in February 2020:

Fish, 10.5 percent; Oils and fats, 1.3 percent; Fruits, 9.9 percent; Vegetables, 8.1 percent; and Food products, not elsewhere classified, 7.1 percent.

Slower annual growth rates were observed in the indices of other cereals, flour, cereal preparation, bread, pasta and other bakery products; and meat, both at 2.6 percent.

The index of milk, cheese and egg retained its previous month’s annual rate of 3.4 percent. The rest of the food groups such as rice and corn exhibited annual declines during the month.

Inflation in NCR decelerated further to 1.7 percent during the month, from 2 percent in February.  In March 2019, inflation was higher at 3.2 percent.

Commodity groups that primarily pushed down the inflation in NCR were housing, water, electricity, gas, and other fuels; and transport whose indices declined at annual rates of 0.9 percent and 3.0 percent, respectively.

Lower annual increments in the indices of health at 2.1 percent; recreation and culture, 0.8 percent; and restaurant and miscellaneous goods and services, 2.0 percent also slowed down the inflation in NCR during the month.

Annual inflation in AONCR ( Areas outside National Capital Region) also continued to move slower at 2.7 percent in March. Inflation in the area was recorded at 2.8 percent in the previous month and 3.4 percent in March 2019.

Contributing primarily to the downtrend in the inflation in AONCR was transport  which dropped at an annual rate of 1.3 percent during the month.  In addition, slowdowns in the annual increases were posted in the indices of alcoholic beverages and tobacco at 18.7 percent; housing, water, electricity, gas, and other fuels, 1.9 percent; and health, 2.9 percent.

Lower inflation was observed in 10 regions in AONCR in March 2020.

Among the regions in AONCR, Region X (Northern Mindanao) registered the lowest inflation during the month at 2.0 percent, while Region V (Bicol Region) and Region XII (Socccsksargen) exhibited the highest inflation at 3.2 percent. DMS