Inflation accelerates to 4.0% in March

Consumer prices in the Philippines grew at a faster pace in March to hit the quickest pace in six months and equal to the print recorded in October 2021, the Philippine Statistics Authority (PSA) reported on Tuesday.

Inflation clocked in at 4.0% in the past month, which compares with 3% in February and the downward revised 4.1% in March 2021. This is the fastest since September 2021's 4.2%.

PSA data also indicate that the last time inflation grew by at least 1 percentage point was in December 2019 when the print jumped to 2.4% from 1.2% in November the same year.

In a virtual briefing, National Statistician Claire Dennis Mapa said the fastest print was recorded in transport prices which grew by 10.3%, as gasoline prices surged by 36.7% and diesel by 58.0%.

Domestic pump prices were hiked in four out of five weeks of the month, except for the rollback implemented on March 22 when gasoline prices were reduced by P5.45, diesel by P11.45, and kerosene by P8.55.

The Department of Energy (DOE) has repeatedly attributed this to the ongoing conflict between Russia and Ukraine that has hit global supplies and drove global prices higher.

Other main drivers of inflation were alcoholic beverages and tobacco at 4.8%; restaurants and accommodation services at 3.0%; and furnishing, household equipment and routine household maintenance at 2.6%.

Mapa said the major drivers of inflation for the month were impacted by the ongoing geopolitical tensions in Ukraine.

Interventions

Malacañang said the economic managers are closely monitoring inflation. 

"Our economic managers continue to keep a tight watch over inflation as it hits 4% in March 2022. They attribute this upward trend in transport, gas, and other fuels, among others," acting presidential spokesperson Martin Andanar said in a statement. 

"Having said this, we will not relax in our efforts and will work twice as hard to address the national issue of higher prices," he added. 

Albay Representative Joey Salceda, chairman of the House ways and means panel, said the March inflation rate should "definitely be treated as a trigger for more government action to provide relief."

The lawmaker suggested that the national government speed up the promised assistance, such as the targeted cash subsidies announced by the Duterte administration.

“In any case, the House is ready to provide the necessary appropriations cover, or the necessary policy support. Whatever they need to get this done faster,” Salceda said.

According to Socioeconomic Planning Secretary Karl Kendrick Chua, the government will distribute unconditional cash transfers worth P500 per month to the poorest 50% of households. 

Moreover, around 115,000 public utility vehicle drivers and operators have each received P 6,500 as fuel subsidy.

Also to be given P3,000 as fuel subsidy are over 158,000 corn farmers and fishermen.

“The government stands ready to support consumers, commuters, public transport drivers and operators, and agricultural producers to ease the impact of high oil and commodity prices," Chua said.

"As COVID-19 cases subside, we also aim to move the entire country to alert level 1 to provide more opportunities for Filipinos to earn and provide for their families amid inflationary pressures,” he added. 

Salceda, meanwhile, urged the government to keep an eye on wheat prices.

"We should still see to it that we have adequate buffers of wheat, as that will be the next commodity that will see significant price increases due to this global situation," Salceda said.

Food inflation rose to 2.8% from 1.1% the previous month, with faster growth rates seen in flour, bread, and other bakery products; meat; fish and other seafood; milk, other dairy products, and eggs; oils and fats; sugar, confectionery and desserts; and ready-made food.

Slower annual increases for the month were seen in the indices of health; recreation, sport, and culture.

Broken down in terms of location, inflation in the National Capital Region came in at 3.4%, up from 1.9% in February and 2.5% in the same month last year.

Inflation then surged to 4.1% in March, which compares with 3.4% in February 2022 and 4.6% in March 2021.   — with reports from Anna Felicia Bajo and Mel Matthew Doctor/KBK/VBL, GMA News