Inflation continues to quicken in March

Inflation continued to accelerate to its quickest pace in at least four years in March, data released by the Philippine Statistics Authority (PSA) revealed Thursday.

According to data released by the PSA, inflation accelerated to 4.3 percent in March using the base year 2012. This is faster than the adjusted 3.8 percent in February this year, and the 3.1 percent in March 2017.

"The monthly change of the seasonally adjusted CPI for all items at the national level increased by 0.6 percent in March 2018," the PSA said.

This is in line with the central bank's projection that inflation settled within the 3.8- to 4.6-percent range in March.

During the month, higher prices were recorded in food and non-alcoholic beverages; alcoholic beverages and tobacco; housing, water, electricity, gas; and furnishing.

There were also higher rates reported in prices of products in health; communication; and restaurant and miscellaneous goods and services.

Based on the initial data available from the PSA — from January 2013 to March 2018 — the latest inflation figure is the fastest since at least four years.

The PSA has yet to release historical inflation figures for the years 2012 and earlier, and is reported to release the data in September this year.

In terms of the base year 2006, inflation was recorded at 4.8 percent in March, the fastest since the 4.9-percent registered in both July and August 2014.

Sought for comment, the Bangko Sentral ng Pilipinas (BSP) said it will continue to review the latest inflation figures and its implications on key monetary policy settings in the country.

"There's a pick-up in inflation that we recognize. Markets are already factoring this," BSP Governor Nestor Espenilla Jr. said in a text message to reporters.

"The coming task of the MB (Monetary Board) is to carefully evaluate the appropriateness of a measured policy response to firmly anchor inflation expectations in line with our forecast that inflation targets will continue to be met in 2018-19," he added.

The BSP has earlier set an inflation target of ±2.0 percent for the full-year 2017.

"This can allow as well for orderly adjustment in market rates and in the peso. We are closely monitoring the situation," Espenilla said. — RSJ, GMA News