Consumer prices were seen to have remained stable in March as fuel stayed cheap and amid cuts in power and taxi rates, the Bangko Sentral ng Pilipinas (BSP) said.
In a statement, BSP Governor Amando M. Tetangco Jr. said rice prices had also started to ease, giving consumers a reprieve from high cost of living.
“Going forward, the BSP will continue to monitor developments that could affect inflation in line with the BSP’s commitment to price stability conductive to balanced and sustained economic growth,” Tetangco said.
Inflation in March is expected to average between 2.1 and 2.9 percent. In February, inflation stood at 2.5 percent, and the month before, consumer prices rose by an average of 2.4 percent.
At the low end of the projected band, inflation would be at a five-year low. If the average reaches the top end, this could suggest that inflation has bottomed out.
This month, government regulators ordered an across the board reduction in taxi fares by P10. The government said taxi operators should pass on savings they had realized as a result of cheaper fuel.
Oil prices in international markets have fallen by about half in the last six months due to fuel exporters’ decision to sustain production levels amid supply glut.
Rice prices also eased this month, the BSP said, reflecting the recovery of farms that were hit by Supertyphoon “Yolanda” in late 2013.
Congestion issues at Manila’s ports, which constrained the flow of commodities in the country, were also resolved earlier this year.
The BSP adjusts its monetary policy settings based on its inflation projections. This is done to protect the consumers’ purchasing power.