The Market Monitor Minding the Nation's Business
Inflation in the Philippines cooled to 1.8% in March 2025, the lowest recorded since June 2020, largely due to the continued decline in food and non-alcoholic beverage prices—especially rice—according to the Philippine Statistics Authority (PSA).
In a press briefing on Friday, PSA Undersecretary Claire Dennis Mapa noted that the March figure was lower than both February 2025’s 2.1% and the 3.7% recorded in March 2024.
Data showed that inflation in food and non-alcoholic beverages slowed to 2.2% from 2.6% the previous month, accounting for more than half of the overall downtrend.
Among the key drivers of this decline were cereals and cereal products, which posted a 5.2% deflation in March, steeper than the 3% deflation in February. Rice, in particular, has seen negative inflation for three consecutive months: -2.3% in January, -8.4% in February, and -7.7% in March.
Mapa pointed to Executive Order 62, implemented in July 2024, as a major factor behind the decline. The order reduced tariffs on imported rice, helping bring down local prices.
“Kung i-compare natin noong—say, base natin noong July 2024, kung saan nagsimula ‘yong reduction sa tariff, bumaba na rin substantially ‘yong presyo ng bigas per kilo,” he said.
From July 2024 to March 2025, PSA data shows regular milled rice prices dropped by P4.90 per kilogram, from P51.11 to P46.09. Well-milled rice fell by P4.19 (from P56.44 to P52.25), while special rice declined by P2.60 (from P64.75 to P62.15).
Transport also contributed to the easing inflation, recording a -1.1% rate in March from -0.2% in February, driven by lower fuel prices and slower fare increases. This group accounted for 27% of the overall downtrend.
Meanwhile, the restaurants and accommodation services sector posted an inflation rate of 2.3%, contributing 16% to the month’s lower inflation figure.