Philippine inflation rate climbs to 3.7% in March

Consumer prices accelerated for the second consecutive month, driven by faster increases in food and transportation costs, the Philippine Statistics Authority (PSA) reported on Friday, April 5.

Based on the PSA report, the the country’s headline inflation quickened to 3.7 percent in March this year from 3.4 percent in February.

This figure was brought about by the increase in rice inflation from 23.7 percent to 24.4 percent during the month— almost toppling the comparable high record of 24.6 percent readout in February 2009.

It also contributed 3.7 percent to the headline inflation during the month, which nearly comprised the whole growth price increase last month.

PSA Undersecretary Claire Dennis S. Mapa said that all the price growth in the three types of rice– namely regular, well-milled, special– that they monitor rose during the month.

A kilogram of regular rice would cost a consumer P51.11 last month, significantly higher than the P39.90 in March 2023 and P50.44 in February.

For well-milled rice, a kilogram had an average of P56.44 in March compared to the P44.23 and P55.93 recorded previously.

As for special rice, it soared to P64.75 last month from P54 in March 2023 and P64.42 in February this year.

For Filipino poor households or those whose income is below the average national income, the impact of rice were further noticeable as it contributed 80 percent to their inflation rate of 4.6 percent.

Mapa said that some rice farmlands reported damages in their irrigation systems, leading to low rice production but assured some farms to have better production.

Earlier, the PSA undersecretary said that the uptrend in rice inflation may continue to July or August this year due to the low base effect seen last year.

Meat products, particularly pork, were also noted to be a major factor in the higher inflation rate which swelled to 2.7 percent from the previous 0.7 percent.

According to the PSA monitoring chart of meat products, the average price of kasim or pork shoulder moved up to P329.52 last month from the previous price of P315.29 in March 2023.

Liempo or pork belly also experienced an increase to P344.29 from P327.27, while meat with bones had an average price of P297.30 from P286.49 in March 2023.

Transport prices, notably oil, also increased during the month from 1.2 percent to 2.1 percent as prices jacked up during the last days of March.
In a separate statement, National Economic and Development Authority Secretary Arsenio M. Balisacan said that the government will continue to monitor the weather conditions and its effects on key commodities.

He also noted that they are starting the preparations for La Niña which include food and energy security, availability of clean water supply, and public health and safety.

“While we continue to face multiple risks, such as potential adjustments in transportation fares, wages, and service utility fees, the Marcos Administration is committed to managing the country’s inflation. This will be key to sustaining our growth momentum and providing a better life for our countrymen,” said Balisacan.

Earlier, the Development Budget Coordination Committee, an inter-agency responsible for setting economic indicators, retained its target range for inflation at 2.0 to 4.0 percent for 2024 until 2028 while they reduced the growth target to 6.0 to 7.0 band from the previous 6.5 to 7.5 percent.

— Xander Dave Ceballos