QUICK LOOK: March 2025 inflation slows to 1.8% as food, transport costs ease

The Philippines’ headline inflation eased to 1.8 percent in March 2025, down from 2.1 percent in February and significantly lower than the 3.7 percent recorded in March 2024.

For the first quarter of 2025, the national average inflation stood at 2.2 percent, reflecting sustained price stability amid slower increases in key commodity groups such as food, transport, and restaurant services.

Highlights of the Philippine Statistics Authority report: Headline inflation

• Headline inflation slowed to 1.8 percent in March 2025 (from 2.1 percent in February).

• The Q1 2025 average inflation is 2.2 percent, down from 3.7 percent in March 2024.

• Main contributors to the downtrend:

  • Food and non-alcoholic beverages: 2.2 percent (from 2.6 percent)

  • Transport: -1.1 percent (from -0.2 percent)

  • Restaurants & accommodation: 2.3 percent (from 2.8 percent)

• Commodity groups with slower inflation:

  • Clothing & footwear: 1.8 percent (from 2.1percent)

  • Furnishings: 2.1 percent (from 2.3 percent)

  • Health: 2.2 percent (from 2.3 percent)

  • Recreation: 2.2 percent (from 2.4 percent)

• Slight uptick in:

  • Alcohol & tobacco: 3.6 percent (from 3.4 percent)

  • Housing, water, electricity, gas: 1.7 percent (from 1.6 percent)

 Food inflation

• Food inflation fell to 2.3 percent in March (from 2.6 percent in Feb; was 5.7 percent in March 2024).

• Key reasons for the drop:

  • Rice prices fell by 7.7 percent (from 4.9 percent)

  • Meat: 8.2 percent (from 8.8 percent)

  • Vegetables: 6.9 percent (from 7.1 percent)

  • Corn: -1.6 percent (from +0.7 percent)

• Bigger increases in prices of:

  • Fish & seafood: 5.5 percent (from 2.9 percent)

  • Dairy & eggs: 3.4 percent (from 2.7 percent)

 Core inflation

• Core inflation (excluding select food & energy items) dropped to 2.2 percent from 2.4 percent in Feb.

 NCR inflation

• Slowed to 2.1 percent in March (from 2.3 percent in February; 3.3 percent in March 2024).

• Decline driven by food, transport, and household spending items.

• Zero inflation recorded in the information & communication category.

Areas outside NCR (AONCR)

• Slowed to 1.8 percent in March (from 2.0 percent in February).

• SOCCSKSARGEN recorded the lowest inflation at -0.2 percent.

• Cagayan Valley retained the highest regional inflation at 2.9 percent.

— Ed: Corrie S. Narisma