Inflation quickens to 4.1 percent in March as fuel, transport costs surge

MANILA, April 8 ------ Inflation quickened to 4.1 percent in March as fuel and transport costs surged, the Philippine Statistics Authority said. This was faster than the 2.4 percent clip seen in February, which was also quicker than the 2 percent inflation in January. It was also above the 2 to 4 percent target range set by economic managers. It was also higher than the forecast range of the Bangko of between 3.1 and 3.9 percent.

PSA Undersecretary and National Statistician Claire Dennis Mapa said this was also the fastest clip since July 2024, when inflation hit 4.4 percent. Economists had been forecasting inflation to accelerate this year due to base effects, or the low inflation rates seen in 2025. The outbreak of war in the Middle East, however, has caused oil prices to skyrocket in the past few weeks, fueling concerns about even faster inflation. “The uptrend in the overall inflation in March 2026 was primarily influenced by the annual increment of the transport index at 9.9 percent during the month, from an annual decrease of 0.3 percent in February 2026,” the PSA said.

Fuel prices have risen sharply since the US and Israel launched a war against Iran at the end of February. Gasoline prices had risen 27.3 percent in March from February, while diesel prices had gone up 59.5 percent. Electricity costs had also gone up by 9.2 percent, the PSA said.

The price hikes for gasoline and diesel were the highest since September 2022, when Russia’s invasion of Ukraine also sent fuel and food prices skyrocketing. Core inflation, which strips out volatile fuel and food items, meanwhile, also climbed to 3.2 percent.

Inflation for the bottom 30 percent income households is higher at 4.2 percent, from 2.5 percent in February. Mapa said inflation will likely go higher in April. “Definitely we’re seeing higher numbers in April. We’ve had series of price increases,” he said. He also noted that inflation will likewise continue to climb for the poorest Filipinos. “Sa ngayon, 4.2 ang sa bottom 30 percent, mataas na yun kasi galing yun sa…ang February natin for the bottom 30 pct income household ay nasa 2.5. So 1.7 percentage points, medyo substantial yon,” he said. “And we will see sa April, but at 4 percent level the inflation rate is already high,” he noted.

Mapa also noted that the purchasing power of the peso is at P0.75 in March. Purchasing power refers to the amount of goods and services money can buy. “Yung purchasing power of peso natin kasi inversely related yan sa inflation rate ano. So siyempre pag tumnataas yunginflation, bumababa yung ating purchasing power,” he explained.

The Department of Economy, Planning and Development (DEPDev) said the government is ready to address inflation by boosting fuel supply, providing cash assistance, and imposing anti-hoarding guidelines for food. The BSP kept rates steady during an off-cycle monetary policy setting meeting last month amid concerns that spiraling fuel prices and the depreciation of the peso would start impacting other goods and services.

Source: news.abs-cbn.com