Inflation eases to 3.3% in March

THE increase in consumer prices has further cooled down for the fifth consecutive month in March, as food prices eased, the Philippine Statistics Authority (PSA) announced on Friday, April 5.

Data from the PSA showed that headline inflation decelerated to 3.3 percent in March, slower than the 3.8 percent in February and the lowest since January 2018’s 3.4 percent.

The slower pace of increase in the prices of goods and services was driven by lower prices of food and non-alcoholic beverages.

“The downtrend was primarily due to slower annual increase in the index of the heavily weighted food and non-alcoholic beverages at 3.4 percent,” the PSA said.

The PSA also noted the slowdowns in price increases in alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; furnishing, household equipment, and routine maintenance of the house; health; communication; and restaurant and miscellaneous goods and services.

The Bangko Sentral ng Pilipinas has set a two to four percent inflation rate target for 2019.

In a statement, Presidential Spokesperson Salvador Panelo said the Palace welcomed the “continuous deceleration” of the inflation rate.

“We are confident that this slide would continue further for the rest of the year, as President Rodrigo Roa Duterte’s signing of Republic Act 11203 (Rice Tariffication Law) last February is expected to further ease inflation,” Panelo said.

“Our economic managers expect rice prices to go down and even cut inflation by 0.5 percent to 0.7 percent point this year,” he added.

Panelo also pledged that the government would continue to look for ways to temper possible soaring prices of basic goods, especially amid the onslaught of El Niño. /