Inflation eases to 1.8% in March 2025

MANILA, Philippines, April 5 ------ Philippine inflation continued to ease with the March 2025 inflation rate declining to 1.8% from 2.1% in the previous month, according to the Philippine Statistics Authority (PSA). March 2025’s inflation rate showed a drop from the same month in 2024, which was at 3.7%.  

The PSA said the national average inflation rate from January to March is currently 2.2%. The lowered inflation rate was brought by the slower rise of food and non-alcoholic beverage prices at 2.2% in March 2025, said the PSA. February 2025’s food and non-alcoholic beverage inflation rate was 2.6%. There was also a slower inflation rate for transport at -1.1% in March 2025, compared to the decline in February 2025 at -0.2%. The PSA also said the prices for restaurants and accommodation services were increasing at a slower rate for March 2025 at 2.3% from 2.8% in February 2025.  

Slower inflation rates were also recorded in the following commodity groups, with their current inflation rates in March 2025 compared to February 2025:  

• Clothing and footwear: 1.8% (down from 2.1%)  

• Furnishings, household equipment and routine household maintenance: 2.1% (down from 2.3%)   

• Health: 2.2% (down from 2.3%)  

• Recreation, sport and culture: 2.2% (down from 2.4%)  

However, several commodity groups still recorded higher inflation rates, namely:  

• Alcoholic beverages and tobacco: 3.6% (up from 3.4%)  

• Housing, water, electricity, gas and other fuels: 1.7% (up from 1.6%)  

• Information and communication: 0.4% (up from 0.3%) 

• Food and non-alcoholic beverages were the main contributors to the overall inflation rate, as well as housing, water, electricity, gas and other fuels. Despite the drop in inflation rate, restaurants and accommodation services were also a contributor to the overall increase of the prices of goods. 

Core inflation, which does not include volatile goods such as food and energy, also slowed down, going from 2.4% in February 2025 to 2.2% in March 2025. The National Economic and Development Authority (NEDA) said this is the lowest inflation rate since the COVID-19 pandemic. In May 2020, inflation was 1.6%. “While the inflation rate continues to ease and remain within the target range, we commit to monitoring risks and shocks, particularly on anticipated electricity rate hikes and higher prices of fish and meat, and addressing them through timely and targeted  interventions,” NEDA Secretary Arsenio Balisacan said in a statement.  

Food inflation has eased to 2.3% in March 2025 from 2.6% in February 2025. Rice was the largest contributor to the decline in food inflation. Rice inflation fell further from -4.9% in February 2025 to -7.7% in March 2025. Inflation rate for meats and other slaughtered land animals declined from 8.8% in February 2025 to 8.2% in March 2025.  

The inflation rate of vegetables, tuber, plantains, cooking bananas and pulses also declined from 7.1% in February 2025 to 6.9% in March 2025. There was also a decline in corn. As it went from -1.6% in March 2025 compared to the 0.7% the previous month. Meanwhile, higher inflation rates were recorded among the following in March 2025:  

• Fish and other seafood: 5.5% (up from 2.9%)  

• Milk, other dairy products and eggs: 3.4% (up from 2.7%)  

• Oils and fats: 4.0% (up from 3.5%)  

• Ready-made food and other food products not elsewhere classified: 3.8% (up from 3.7%)  

Source: philstar.com