Inflation in the Philippines Accelerates to 3.7% in March 2024
The country’s inflation rate increased to 3.7% in March 2024, fueled by higher food and transportation costs, according to a report from the Philippine Statistics Authority. National Statistician Claire Dennis Mapa announced during a press briefing that inflation rose from 3.4% in February 2024 to 3.7% in March 2024, falling within the Bangko Sentral ng Pilipinas’ forecast range of 3.4% to 4.2%.
The uptick in inflation was mainly driven by a faster increase in the prices of food and non-alcoholic beverages, which climbed to 5.6% from the previous month’s 4.6%. Factors such as the deceleration in the price drop of vegetables, tubers, and cooking bananas, as well as the prices of meat, cereals, and cereal products, contributed to the acceleration of food inflation.
Transportation costs also played a role in the upward trend, with inflation reaching 2.1% in March, up from 1.2% in February. Mapa highlighted the 3.6% inflation in passenger transport and the rise in oil prices as key factors behind the rapid increase in transportation costs’ inflation rates.
Core inflation, however, decreased to 3.4% in March 2024, lower than both the previous month’s 3.6% and March 2023’s 8.0%. Food prices surged to 5.7% this month, with rice inflation staying high at 24.4%. Mapa noted that rice inflation is expected to continue rising until July due to the “base effect.”
Overall, the latest report signals a challenging economic landscape for the Philippines in terms of rising inflation and its impact on consumer prices.
