Inflation Rises to 4% in March

Inflation in the country rose by 1 percent in a month as March’s inflation rate saw an uptick to 4 percent as compared to 3 percent in February as the government still touts it to be within the target threshold.

According to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, the 4 percent inflation recorded in March brings the average inflation in the first quarter of 2022 to 3.4 percent, still well inside the 2-4 percent target range of the government until 2024.

Diokno added that the economic consequences brought about by the Russian invasion of Ukraine have become a great hindrance to the global economic recovery.

Increases in oil prices and basic commodities in the international and domestic markets forced the Philippine monetary agencies to increase the average inflation forecast for the remainder of 2022 to 4.3 percent and 3.6 percent for 2023. This is an increase from the previously set inflation forecasts of 3.7 percent for 2022 and 3.3 percent for 2023.

Higher inflation rates may impact an economy negatively such as slower GDP growth, and higher cost of transport fares and food prices. (GFB)