Higher food and transportation costs increased inflation in March 2024, according to the Philippine Statistics Authority (PSA).
The data showed inflation in March 2024 was faster at 3.7 percent compared to the 3.4 percent posted in February 2024.
However, compared to last year, inflation was slower compared to the 7.6 percent posted in March 2023.
The increase in inflation is within the Bangko Sentral ng Pilipinas (BSP) expectations of 3.4 percent to 4.2 percent (See: https://businessmirror.com.ph/2024/04/02/bsps-march-outlook-inflation-at-3-4-4-2/).
However, it was slower than the expectations of BSP Governor Eli M. Remolona Jr. of 3.9 percent (See: https://businessmirror.com.ph/2024/03/21/bsp-inflation-could-have-hit-3-9-in-march/).
Food inflation at the national level rose to 5.7 percent in March 2024 from 4.8 percent in February 2024. In March 2023, food inflation was higher at 9.5 percent.
PSA data sgowed food and non-alcoholic beverages with 57.3 percent share or 2.1 percentage points to the increase in inflation.
This was followed by restaurants and accommodation services with 14.6 percent share or 0.5 percentage point and transport with 5.1 percent share or 0.2 percentage point.
Meanwhile, PSA data showed core inflation, which excludes selected food and energy items, slowed down to 3.4 percent in March 2024 from 3.6 percent in the previous month. In March 2023, core inflation was higher at 8 percent.
Inflation in the National Capital Region (NCR) moved at a faster pace at 3.3 percent in March 2024 from 3.2 percent in the previous month. In March 2023, inflation rate in the area was recorded at 7.8 percent.
The inflation trend at the national level and in NCR, overall inflation in Areas Outside NCR also showed an uptrend at 3.8 percent in March 2024 from 3.5 percent in February 2024. In March 2023, inflation in the area was recorded at 7.5 percent.