Metro Manila (CNN Philippines, April 7) — Inflation softened further in March as crashing global oil prices kept transportation costs down, the Philippine Statistics Authority said Tuesday.
Prices of basic goods rose by 2.5 percent in March. This is the slowest rate so far this year after February’s 2.6 percent pickup. The pace is also slower compared to the 3.3 percent climb logged in March 2019.
By location, inflation picked up faster in the provinces, where the prices of basic items rose by 2.7 percent versus a 1.7 percent increase in Metro Manila. Prices climbed the fastest in the Bicol region and in SOCCSKSARGEN in Mindanao at 3.2 percent.
The actual figure is slightly faster than the 2.4 percent estimate given by Bangko Sentral ng Pilipinas Governor Benjamin Diokno last week, who said tumbling oil prices and the two-month price freeze due to the COVID-19 outbreak would keep inflation at bay.
READ: Why oil prices are crashing and what it means
Consumers enjoyed a series of big-time rollbacks in retail pump prices during the month due to a global supply glut, sending the benchmark Dubai crude prices falling to multi-year lows which has spilled over to April. Lockdowns imposed in Luzon as well as select provinces also kept demand for fuel down.
The PSA said transport costs declined by 1.8 percent last month, which mainly triggered the softer inflation print. Price increases for alcohol and tobacco, as well as housing and utility costs also slowed compared to a year ago.
The cost of food and non-alcoholic drinks rose by 2.6 percent despite a price freeze on basic items in place since March 8, when Malacañang declared a public health emergency due to the coronavirus outbreak. In particular, food costs grew by 3.7 percent in Metro Manila, much faster than the 2.3 percent climb in the regions. Rice and corn prices remained lower than last year’s levels, but the tags on fish, fruits, and vegetables all climbed by nearly a tenth.
The cost of furnishing and household equipment also picked up 4.2 percent versus the previous month, according to PSA data. Meanwhile, the rise in costs for restaurant and takeout meals, education, health, and clothing stood steady from February.
