Philippine Inflation Rate Jumps to 3.7% in March

The Philippine inflation rate climbed to 3.7% in March 2024, marking a consecutive monthly increase, primarily driven by rising food and transportation costs. The Philippine Statistics Authority (PSA) noted this uptick from February’s 3.4%, though it is a deceleration from the 7.6% rate a year prior.

National Statistician Claire Dennis Mapa highlighted that the Food and Non-Alcoholic Beverages sector was a significant contributor to this rise, with inflation in this category reaching 5.6%. The Transport and Restaurants and Accommodation Services sectors also saw notable increases.

Rice inflation notably surged to 24.4%, the highest in nearly 15 years, affecting overall food inflation, which accelerated to 5.7%. The lower-income households felt a more substantial impact, with inflation for the bottom 30% increasing to 4.6%.

Authorities, recognizing the influence of weather patterns on commodity supply and prices, are closely monitoring the situation. The dry season and potential El Niño effects are areas of concern, with the government taking proactive steps to mitigate adverse impacts on agriculture and water supply.

Efforts to control rice prices are deemed crucial in managing the country’s inflation, with emphasis on the importance of water impoundment and support for farmers facing drought conditions. The government maintains a 2% to 4% inflation target range for 2024-2028, hoping to stabilize prices through various measures.