Headline inflation or the overall inflation in the Philippines slowed down further to 7.6 percent in March 2023 from 8.6 percent in February 2023. Inflation rate in March 2022 was lower at 4.0 percent. The average inflation for the first quarter of 2023 stood at 8.3 percent.
Among the 13 commodity groups, the continued downtrend of the overall inflation in March 2023 was mainly brought about by the heavily-weighted food and non-alcoholic beverages, which recorded a lower inflation rate of 9.3 percent from 10.8 percent in the previous month.
This was followed by transport with an inflation rate of 5.3 percent from 9.0 percent in the previous month. The third primary driver of the downtrend of the headline inflation during the month was housing, water, electricity, gas and other fuels, which recorded a 7.6 percent inflation rate from 8.6 percent in February 2023.
Other commodity groups that contributed to the downtrend in the March 2023 headline inflation were health and information and communication commodity groups, which registered lower inflation rates during the month at 3.9 percent and 0.7 percent, respectively, compared with their previous month’s inflation rates.
In contrast, higher inflation rates were observed in the following commodity groups:
a. Alcoholic beverages and tobacco, 12.2 percent from 11.0 percent;
b. Clothing and footwear, 5.0 percent from 4.8 percent;
c. Recreation, sport and culture, 4.6 percent from 4.4 percent;
d. Restaurants and accommodation services, 8.3 percent from 8.1 percent; and
e. Personal care, and miscellaneous goods and services, 5.6 percent from 5.3 percent.
March headline inflation slows down to 7.6 percent – PSA
The indices of furnishings, household equipment and routine household maintenance; and education services retained their corresponding previous month’s annual increments at 6.2 percent and 3.6 percent. Similarly, the annual rate in the financial services index remained at zero percent.
In terms of contribution to the March 2023 headline inflation rate, the top three commodity groups were the following:
a. Food and non-alcoholic beverages with 46.6 percent share or 3.5 percentage points;
b. Housing, water, electricity, gas and other fuels at 21.6 percent share or 1.6 percentage points; and
c. Restaurants and accommodation services at 10.6 percent share or 0.8 percentage points.
Food inflation at the national level also continued to move downward at 9.5 percent in March 2023 from 11.1 percent in February 2023. In March 2022, food inflation was lower at 2.8 percent.
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