Inflation Update: With sticky inflation, policy rates by the BSP likely to remain unchanged this month

The Philippines’ headline inflation further accelerated to 3.7% year-on-year in March from 3.4% in February 2024, mainly driven by accelerated prices of food and non-alcoholic beverages.

We retain our yearend average inflation forecast at 4.3% (with a downward bias) as there continues to be a strong upward inflation pressure for the year due to rising rice prices, the effects of El Niño, and emerging geopolitical risks.

As the year-to-date headline inflation print is now closer to the lower band of our baseline forecast range, a re-evaluation of current estimates may be necessary in the near term.

Find out more on our latest inflation report below.