PHL Inflation Falls to 1.8% in March, Lowest Since May 2020

The Philippines’ inflation rate eased to 1.8 percent in March 2025, the lowest level recorded since May 2020, bolstering the government’s commitment to maintaining price stability and safeguarding consumer purchasing power.

According to the Philippine Statistics Authority (PSA), the March figure dropped from 2.1 percent in February, largely due to slower price increases in both food and non-food items.

“This continued decline in inflation indicates the effectiveness of the government’s proactive measures to stabilize prices and protect the purchasing power of Filipino households,” National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said in a statement on April 4.

The last time inflation was this low was during the height of the COVID-19 pandemic, when it fell to 1.6 percent in May 2020.

Food inflation slowed to 2.3 percent in March from 2.6 percent in February, driven by a steeper year-on-year drop in rice prices, which fell 7.7 percent, compared to 4.9 percent the month prior.

Other food items also posted slower price increases, with meat and other parts of slaughtered land animals easing to 8.2 percent from 8.8 percent and vegetables and pulses down to 6.9 percent from 7.1 percent.

Non-food inflation also declined to 1.4 percent from 1.6 percent, amid lower prices for petroleum and restaurant services.

On a month-on-month, seasonally adjusted basis, inflation inched up by 0.1 percent, following a flat reading in February.

Year-to-date, average inflation stands at 2.2 percent, close to the lower end of the government’s 2 to 4 percent target range.

The Bangko Sentral ng Pilipinas (BSP) noted that March inflation was within its forecast range of 1.7 to 2.5 percent.

The central bank said the inflation trend supports its projection that price increases will stay within the target range through 2026.

“The latest inflation outturn is consistent with the BSP’s assessment that inflation will remain within the target range over the policy horizon,” the BSP said in a statement.

BSP’s Monetary Board is scheduled to review the March consumer price index (CPI) and other economic developments during its next policy meeting on April 10.

Balisacan stressed that while inflation remains subdued, the government is keeping a close watch on potential risks including possible electricity rate hikes and rising meat and fish prices.

He also acknowledged external uncertainties, particularly a new executive order issued by U.S. President Donald Trump that imposes new tariffs.

“With or without the trade policy changes in the US, maintaining sound macroeconomic fundamentals, improving the ease of doing business, maximizing existing trade agreements, and forging new partnerships are still the most important strategies we can pursue to ensure that we protect the purchasing power of Filipinos and promote rapid, sustained, and inclusive growth,” Balisacan said.

In response to global and climate-related risks, the government is expanding its support for the agriculture sector.

The Insurance Commission and Philippine Crop Insurance Corporation recently signed an agreement to enhance crop insurance services, especially in light of the weakening La Niña conditions reported by the Philippine Atmospheric, Geophysical, and Astronomical Services Administration.

To stabilize pork prices in Metro Manila, the Department of Agriculture (DA) has partnered with the local unit of Thailand’s Charoen Pokphand Foods PLC through a memorandum of agreement signed by Food Terminals Inc., a government-owned firm.

The DA is also collaborating with the National Housing Authority (NHA) to launch Kadiwa Stores in housing projects, with the agency providing technical and logistical support.

Meanwhile, the Department of Science and Technology is developing a rapid detection protocol for African Swine Fever through the Industrial Technology Development Institute under its Virology and Vaccine Research Program, aimed at enhancing biosecurity.

“Banking on the positive results of our short- and long-term initiatives to address inflationary pressures, the government will continue focusing on implementing policies to ensure that every Filipino benefits from a stable and resilient economy,” Balisacan said.