Inflation eases to 1.8 percent in March

Headline inflation eased to 1.8 percent year-on-year in March from 2.1 percent in February. This was within the BSP’s forecast range of 1.7–2.5 percent for the month. Year-to-date, average inflation stands close to the low end of the Government’s target range of 2-4 percent at 2.2 percent. On a month-on-month seasonally adjusted basis, headline inflation rose to 0.1 percent in March from nil in February. Core inflation further slowed to 2.2 percent in March from 2.4 percent in the previous month.
Food inflation eased in March. Domestic rice prices continued to fall, reflecting lower global rice prices and the impact of government measures to stabilize supply. Meat inflation also slowed despite remaining relatively high due to the impact of African Swine Fever on domestic pork supply. Non-food inflation also fell following the decline in domestic petroleum prices and lower inflation for restaurants and accommodation services.
The latest inflation outturn is consistent with the BSP’s within-target inflation outlook over the policy horizon. The Monetary Board will consider the latest CPI print, along with latest domestic and global developments, at its monetary policy meeting on 10 April 2025.