The Philippines’ headline inflation or overall inflation slowed down further to 1.8 percent in March 2025 from 2.1 percent in the previous month, bringing the national average inflation rate from January to March 2025 to 2.2 percent. The inflation rate in March 2024 was higher at 3.7 percent.
The Philippine Statistics Authority said that the downtrend in the overall inflation in March 2025 was primarily brought about by the slower annual increment in the index of food and non-alcoholic beverages at 2.2 percent in March 2025 from 2.6 percent in the previous month.
Also contributed to the downtrend was the faster year-on-year decrease in the transport index at 1.1 percent during the month from a 0.2 percent annual drop in February 2025. In addition, a slower inflation rate was recorded for restaurants and accommodation services at 2.3 percent in March 2025 from 2.8 percent in the previous month.
Moreover, slower annual increases were noted in the indices of the following commodity groups in March 2025: clothing and footwear, 1.8 percent from 2.1 percent; furnishings, household equipment and routine household maintenance, 2.1 percent from 2.3 percent;
health, 2.2 percent from 2.3 percent; and recreation, sport and culture, 2.2 percent from 2.4 percent.
On the contrary, compared with their previous month’s inflation rates, higher rates were observed during the month in the indices of alcoholic beverages and tobacco at 3.6 percent from 3.4 percent; housing, water, electricity, gas and other fuels at 1.7 percent from 1.6 percent; and information and communication at 0.4 percent from 0.3 percent.
The indices of the rest of the commodity groups retained their respective previous month’s annual rates.
Food inflation at the national level further eased to 2.3 percent in March 2025 from 2.6 percent in the previous month. In March 2024, food inflation was higher at 5.7 percent.
