The country’s inflation rate rose to 3.7 percent in March 2024, driven by higher food prices, according to the Philippine Statistics Authority (PSA) on Friday. The March 2024 inflation of 3.7% is within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 3.4% to 4.2%.
Despite this increase, the average inflation rate for the first quarter of 2024 stands at 3.3%, well within the government’s targeted range of 2% to 4% for the entire year.
The PSA said the uptick is mainly due to a faster food inflation rate of 5.7% in March 2024, up from 4.8% in February 2024. This increase was influenced by rice inflation, which accelerated to 24.4% from 23.7%, and meat inflation increased to 2% from 0.7%.
The BSP said the risks to the inflation outlook remain tilted toward the upside. Looking ahead, the Monetary Board will consider the latest inflationoutturn in its upcoming monetary policy meeting on April 8, 2024, the BSP said.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said further local policy rate pause or cut could already be possible for the coming months.
The policy-making Monetary Board kept the overnight borrowing rate unchanged at 6.5% and the overnight deposit and lending facilities at 6% and 7% in its February meeting this year.
In a separate statement, the National Economic and Development Authority reaffirms the government’s commitment to secure the nation’s food and energy supplies while proactively addressing potential price fluctuations.
As El Niño conditions persist and La Niña threatens the latter half of the year, the government is implementing strategic measures following a holistic approach to managing inflation.
Albay Rep. Joey Salceda meanwhile said that with the recorded increase of inflation, the government’s gameplan to help ease the burden of rising prices of basic commodities should be focused on rice production.
Salceda, the chair of the House Ways and Means Committee and the bigger chamber’s resident economist, said that food inflation accounts for 57 % of the total inflation in March, which saw an increase in overall inflation to 3.7% from the previous month’s 3.4%.
Salceda explained that corn prices are declining, as well as the cost of fish, vegetables, bread and even bread.
“The game plan must be focused on rice,” he declared.
He lauded the efforts of the Department of Agriculture in helping farmers increase agricultural production, citing progress in the area of delivering programs such as the Survival and Recovery (SURE) Loan program of the Agricultural Credit Policy Council (ACPC).
As it is the dry season, Salceda advised farmers to stock up on water as a valuable resource during the long dry spell.
Salceda said PAGASA forecasts that the droughts will begin in May, and the rain that will be experienced this month should provide ample opportunity to impound water.