HEADLINE inflation increased to 3.7 percent year-on-year in March from 3.4 percent in February. This is within the BSP’s forecast range of 3.4 – 4.2 percent for the month.
The resulting year-to-date average of 3.3 percent was within the Government’s inflation target range of 3.0 percent ± 1.0 percentage point for the year.
On a month-on-month seasonally adjusted basis, headline inflation slowed down to 0.3 percent in March from 0.9 percent in the previous month.
Meanwhile, core inflation, which excludes selected volatile food and energy items and measures underlying demand-side price pressures, decelerated further to 3.4 percent year-on-year in March from 3.6 percent in February.
Headline inflation rose owing mainly to higher food inflation which accelerated during the month on account, in turn, of faster meat inflation and the continued uptrend in rice prices.
On the other hand, non-food inflation held steady year-on-year as higher inflation for transport as well as restaurants and accommodation services was offset by slower inflation for housing, water, electricity, gas and other fuels.
The latest inflation outturn is consistent with the BSP’s projections that inflation path is likely to be within the target range in Q1 2024 but will accelerate in the middle of the year due to the possible impact of adverse weather conditions on domestic agricultural output as well as positive base effects.
The Monetary Board will consider recent price developments and will update its outlook for inflation at its upcoming monetary policy meeting on 8 April 2024.
About the Author
