The rise in consumer prices eased to 3.2 percent year-on-year in March from 3.4 percent in February amid slower price increases in the heavily weighted food and non-alcoholic beverages as well as utilities and fuels, household goods and transportation and communication, the National Statistics Office announced Friday. The comparative figure for March last year was from 2.6 percent.
The Bangko Sentral ng Pilipinas said consumer prices were seen to have kept a modest rate of increase in March, given a favorable food supply and lower domestic oil prices.
The Bangko Sentral ng Pilipinas said the rate of rise in consumer prices would likely remain modest this year and in 2014 due to expectations that the peso would stay relatively firm against the US dollar.
The average inflation in 2012 slowed to 3.2 percent, from the 4.6 percent recorded in the previous year, hitting the low end of the Bangko Sentral ng Pilipinas’ target range of 3 to 5 percent, the National Statistics Office (NSO) said Friday.
The rate of increase in consumer prices in the Philippines is expected to have kept a “muted reading” in November, with inflation easing further and settling at 3 percent year-on-year, according to DBS Group.
As the country’s inflation continues to ease, the Bangko Sentral ng Pilipinas may soon take steps to ensure that the average increase in consumer prices will not be too discouraging for businesses.
The rate of rise in the country’s consumer prices is expected to remain benign in June on the back of falling oil prices in the global market.
The rate of increase in consumer prices in May will likely be restrained, ranging from 2.5 to 3.4 percent, the Bangko Sentral ng Pilipinas said.
Inflation picked up in April to 3 percent, from 2.6 percent the previous month, due to price hikes of most commodity groups, including the heavily weighted food basket.
The rate of rise in consumer prices is “not likely to kick up much” in the second quarter despite the increase in oil prices.
The increase in consumer prices for this year is still expected to move within the official target of 3 to 5 percent even with the approval of a 50-centavo increase in the minimum jeepney fare.
The Bangko Sentral ng Pilipinas has eased concerns over rising oil prices in the global market, saying its estimates showed that inflation for the year can still average within the 3- to 5-percent target even if the Dubai crude hits as much as $160 a barrel.
