FX.co ★ Philippines Inflation Rate at Nearly 5-Year Low

In March 2025, the Philippines experienced a reduction in its annual inflation rate to 1.8%, down from 2.1% the previous month, marking the lowest level since May 2020. This figure came in below market expectations, which had projected a rate of 2.1%. The decline was largely due to moderated price increases in categories such as food and non-alcoholic beverages (reduced to 2.2% from 2.6% in February), clothing and footwear (down to 1.8% from 2.1%), and restaurant and accommodation services (decreased to 2.3% from 2.8%). Conversely, the costs related to transport fell further, registering a decline of -1.1%, compared to -0.2% previously. Meanwhile, inflation rose slightly in areas such as alcoholic beverages and tobacco (3.6% from 3.4%), housing and utilities (1.7% from 1.6%), and information and communication (0.4% from 0.3%). Core inflation, which excludes certain volatile food and energy prices, also decreased, settling at 2.2% from 2.4% in the previous period. On a monthly basis, consumer prices fell by 0.2%, maintaining the same rate of decline as observed in the prior month.