The country’s inflation rate eased further to a five-year low in March, with price pressures tempered by lower food and transport costs, which the Philippine government said was in no small part due to its various interventions.
In a report released yesterday, the Philippine Statistics Authority (PSA) said headline inflation rate dropped to 1.8 percent in March, from 2.1 percent in February.
This marks the lowest headline inflation rate since the height of the COVID-19 pandemic in May 2020, when inflation was recorded at 1.6 percent.
Specifically, last month’s decline was driven by slower inflation in both food (2.3 percent from 2.6 percent) and non-food (1.4 percent from 1.6 percent) items.
The easing of food inflation was primarily due to the faster year-on-year decline in rice, which decelerated to -7.7 percent in March 2025 from -4.9 percent in February 2025.
Socioeconomic Planning Sec. Arsenio Balisacan, who heads the National Economic and Development Authority (NEDA), said the government will continue to implement strategies to safeguard the purchasing power of Filipinos.
“The continued decline in inflation indicates the effectiveness of the government’s proactive measures to stabilize prices and protect the purchasing power of Filipino households,” Balisacan said.
“While the inflation rate continues to ease and remain within the target range, we commit to monitoring risks and shocks, particularly on anticipated electricity rate hikes and higher prices of fish and meat, and addressing them through timely and targeted interventions,” he added.
Furthermore, the government will be vigilant regarding the potential implications of the recently issued Executive Order by United States President Donald Trump on tariff increases.
“With or without the trade policy changes in the US, maintaining sound macroeconomic fundamentals, improving the ease of doing business, maximizing existing trade agreements, and forging new partnerships are still the most important strategies we can pursue to ensure that we protect the purchasing power of Filipinos and promote rapid, sustained, and inclusive growth,” Balisacan said.
Meanwhile, the Department of Agriculture (DA) said the maximum suggested retail price (MSRP) it imposed on select food items helped curb price surges.
It was emphasized that food inflation makes up a significant portion of overall inflation.
To recall, the DA introduced an MSRP for imported rice in January, initially set at P58 per kilogram, which was gradually reduced to P45 by March 31.
The DA also set an MSRP for pork earlier in March, helping to lower meat prices.
“While some sectors doubted the effectiveness of our MSRP implementation, the inflation numbers clearly show that we are on the right path in protecting the welfare of millions of Filipino consumers, while also ensuring that agricultural workers and others in the value chain receive a fair return for their hard work,” said Agriculture secretary Francisco P. Tiu Laurel Jr.
He emphasized that the DA will continue to focus on boosting production and closely monitor prices to ensure that low-income Filipino families have access to affordable food.
Economic Planning Undersecretary and national statistician Dennis Mapa highlighted that rice played a major role in the decline, with its price dropping by 7.7 percent in March compared to a smaller 4.9 percent decline in February.
He also pointed out that other food items, such as meat and vegetables, saw slower price increases, further contributing to the overall decline in inflation.
The PSA noted that the slowdown in inflation for the bottom 30 percent of income households, which fell to 1.1 percent in March, was largely driven by lower food prices.
Rice alone accounts for roughly P18 of every P100 spent by a poor Filipino family.
For his part, House Speaker Martin Romualdez called the easing of inflation last month “a welcome development.”
“This shows that the intervention measures taken by President Ferdinand R. Marcos Jr. and his administration, like the drastic reduction in tariff on rice imports and the setting of maximum retail prices for rice and other food items, are paying off,” he said.
“We are happy for our people because slower inflation means less financial burden on their part,” he added.
Albay Rep. Joey Sarte Salceda said as “As expected, inflation continues to slow down as the price pressures present last year on rice and other key commodities are no longer as heated.”
“I expect prices of rice will continue to decline year-on-year, before resuming a slightly positive inflation rate midyear,” said the noted economist and chair of the Ways and Means panel.
“That said, we must remain vigilant about the prices of meat, which is in large part determined by the price of corn,” Salceda added.