THE Philippines’ inflation rate accelerated further in March, marking its second straight month of acceleration, amid faster increases in food and transportation costs, the Philippine Statistics Authority (PSA) reported yesterday.
At a press briefing, National Statistician and PSA chief Claire Dennis Mapa said inflation — which measures the rate of increase in the prices of goods and services — quickened to 3.7% in March 2024 from 3.4% in February 2024.
Last month’s inflation rate, however, was slower than the 7.6% rate seen in March 2023.
This brought the year-to-date inflation print to stand at 3.3%, falling within the government’s ceiling of 2% to 4%.
It also fell within the BSP’s 3.4% to 4.2% forecast range for the period.
Uptrend
Mapa said the main factor that influenced the overall inflation uptrend in March was the heavily-weighted Food and Non-Alcoholic Beverages index which saw an inflation rate of 5.6% from 4.6% in February.
The Food and Non-Alcoholic Beverages index contributed 76.4% to the overall inflation rate increase for the month.
Faster upticks in Transport index at 2.1% from 1.2% month-on-month as well as Restaurants and Accommodation Services at 5.6% from 5.3% a month earlier also contributed to March’s inflation uptrend.
Likewise, food inflation — which tracks price movements in a “basket” of foods commonly purchased by households — accelerated to 5.7% from 4.8% in February.
The main culprit was rice again which saw an inflation rate of 24.4%, faster than 23.7% in February.
This was also the fastest inflation print for the grain staple in nearly 15 years when it clocked in at 24.6% in February 2009.
Meat inflation also increased to 2% from 0.7% month-on-month.
Meanwhile, inflation rate felt by the bottom 30% income households in the country also rose to 4.6% from 4.2% in February, still due to faster increases in Food and Non-Alcoholic Beverages at 7.1% from 6.4% a month earlier.
Food inflation for the income class, likewise, quickened to 7.4% from 6.5%.
Dry Season
National Economic and Development Authority (NEDA) secretary Arsenio Balisacan said that the agency is “closely monitoring weather conditions and their effects on the supply of key commodities.”
Balisacan said NEDA is keeping a close eye on whether this will result in sudden price increases.
The NEDA chief reaffirmed the government’s commitment to secure the nation’s food and energy supplies while proactively addressing potential price fluctuations.
As El Niño conditions persist and La Niña threatens the latter half of the year, the government is implementing strategic measures following a holistic approach to managing inflation, according to the country’s chief economist.
The Development Budget Coordination Committee retains its target range for the inflation rate at 2% to 4% for 2024 until 2028.
The DBCC expressed optimism that the monetary and non-monetary measures will rein in commodity prices and prevent future surges. (GMA Integrated News)
