Inflation Update: With sticky inflation, policy rates by the BSP likely to remain unchanged this month
Prices of food and non-alcoholic beverages continue to be the biggest sources and contributors to the country’s inflation.
![Colorful veggies at the refrigerated shelves of the grocery store](https://wealthinsights.metrobank.com.ph/app/uploads/2023/04/grocery-veggies-aa-1.jpg)
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.
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Inflation Update (April 5, 2024)
We are retaining our average inflation forecast for 2024 with a downward bias.