Inflation in the Country Drops to 1.8% in March 2025

Headline inflation in the country dropped to 1.8% in March 2025, according to the Bangko Sentral ng Pilipinas (BSP) and Philippine Statistics Authority (PSA), as prices of food, transport, and services slowed due to lower rice costs and government supply measures.

This rate is lower than February’s 2.1% and falls within BSP’s forecast range of 1.7% to 2.5%. The year-to-date average inflation stands at 2.2%, near the low end of the government’s target of 2% to 4%.

Food and non-alcoholic beverages saw slower price increases, dropping to 2.2% in March. Transport costs also fell further, while restaurants and accommodation services posted smaller increases.

Rice prices continued to decline because of cheaper global rates and local efforts to ensure stable supply. Meanwhile, meat inflation eased, though prices remain high due to the impact of African Swine Fever.

Core inflation, which excludes selected food and energy items, slowed to 2.2% from 2.4% in February.

The BSP said the latest inflation figures support its forecast of stable prices. The Monetary Board will review these numbers during its policy meeting on April 10, 2025. (ASC)