BSP sees faster inflation in March at 3.1%-3.9%

By Katherine K. Chan, Reporter

Costlier fuel, electricity, rice and the peso’s weakness drove inflation past the central bank’s point target in March, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

In its latest month-ahead inflation forecast, the BSP said inflation likely settled between 3.1% and 3.9% in March, faster than the 1.8% clip a year ago and 2.4% in February.

At the upper end of the forecast, inflation may have accelerated to its fastest pace in over two years or since the 4.1% in November 2023. It would also match the headline inflation logged in May 2024.

Meanwhile, at the bottom end, inflation would be the fastest print in 19 months or since the 3.3% clip in August 2024.

“Inflation risks have intensified with upward price pressures arising from the significant increase in domestic petroleum prices, higher rice prices, increased electricity charges in Meralco-serviced areas, and depreciation of the peso,” the central bank said in a statement.

Still, cheaper prices of vegetables, fish and meat likely tempered price pressures during the month, it added.