March Inflation at 4.5%, More Relaxed Compared to 4.7% in February

According to government data released on Tuesday, the slower price movement of food and non-alcoholic beverages led to slight inflation ease.

The consumer price index rose 4.5% in March, a bit slower compared to 4.7% in February. This falls within the forecast of the Bangko Sentral ng Pilipinas (BSP) of 4.2% to 5% for March but exceeds the government’s 2% to 4% range.

The inflation forecast was raised from 2.7% to 2.8% for 2022. BSP Governor Benjamin Diokno believed that inflation will most likely breach the upper end of the government target of 2% to 4% for 2021.

Diokno said that inflation remains “transitory” and manageable despite the small uptick. The BSP still has tools at its disposal to provide support for the economy.

The areas within the NCR Plus bubble are still under Enhanced Community Quarantine (ECQ) after the one-week extension implemented by the government. This continues to put a strain on movements and economic activities.

Source: ABS CBN