Inflation slows down in March at 2.5 percent

MANILA, Philippines — Headline inflation in the country slowed to 2.5 percent in March, primarily due to the easing of transportation cost whose index dropped at an annual rate of 1.8 percent. The latest figure according to the Philippine Statistics Authority (PSA), is lower than in February 2020 at 2.6 percent and in March 2019 at 3.3 percent.

“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,” PSA said in a report released Tuesday.

The PSA in its report said the prices of commodities such as food items and petroleum products were collected during the implementation of the enhanced community quarantine in Luzon and in other provinces in the country.

The enhanced community quarantine in Luzon that started on March 17 adversely affected several industries. It was originally set to end at midnight on April 13 but was approved to be extended by the government until April 30.

Meanwhile, higher annual increases were noted in other commodity groups, such as in food and non-alcoholic beverages at 2.6 percent; furnishing, household equipment and routine maintenance of the house at 4.2 percent; communication at 0.5 percent, and; recreation and culture at 1.6 percent.

“Excluding selected food and energy items, core inflation slowed down further to 3.0 percent in March 2020. In the previous month, core inflation was posted at 3.2 percent, and in March 2019, 3.5 percent,” read the report.

The PSA said food inflation inched up to 2.6 percent from the 2.1 percent in February. Fish (10.5%), fruits (9.9%), vegetables (8.1%), oils and fats (1.3 percent), and other food products (7.1 percent) all registered higher annual markups.

But slower annual growth rates were observed in the indices of other cereals, flour, cereal preparation, bread, pasta, and other bakery products, as well as meat at 2.6 percent, according to PSA.

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

Meanwhile, in Metro Manila, inflation eased to 1.7 percent in March, from 2.0 percent in February. In March 2019, inflation in the capital region was higher at 3.2 percent.

Annual inflation in areas outside the National Capital Region (AONCR) continued to move slower at 2.7 percent in March 2020 from 2.8 percent in February. In March 2019, the figure was marked at 3.4 percent.

/MUF