Philippines: Inflation eases notably to over one-year low in March

Consumer prices came in flat over the prior month in March, down from the 0.2% increase logged in February. A sharp fall in the prices of food and non-alcoholic beverages was offset by equally notable increases in transport, and alcoholic beverages and tobacco prices. Meanwhile, housing, water, electricity, gas, and other fuels costs also ticked up.

Inflation retracted notably to 3.3% in March from 3.8% in February, falling closer towards the midpoint of the Central Bank’s target band of 3.0% plus or minus 1.0 percentage point. Likewise, core inflation, which excludes volatile food and energy prices, slowed to 3.5% in March from 3.9% in February, while annual average inflation ticked down to 5.2% from 5.3% in February.

Philippines Inflation Forecast

FocusEconomics Consensus Forecast panelists expect inflation to average 3.5% in 2019, which is down 0.2 percentage points from last month’s projection. For 2020, panelists see average inflation of 3.6%.