Finance Secretary Ralph G. Recto welcomed the sharp decline in the Philippines’ inflation rate to 1.8 percent in March, the lowest since the pandemic, while assuring that the government will remain vigilant in its efforts to protect consumers’ purchasing power.
“This is great news, especially for consumers and businesses,” Recto said, emphasizing that the government would continue to monitor prices closely and take proactive actions to maintain the positive momentum, particularly amid global uncertainties.
The decrease in inflation was largely driven by slower price increases in both food (2.3 percent from 2.6 percent in February) and non-food items (1.4 percent from 1.6 percent). The reduction in food inflation greatly benefitted low-income households, with inflation for the bottom 30 percent of households dropping to 1.1 percent from 1.5 percent in February.
“The priority remains alleviating the burden on vulnerable sectors, particularly low-income families,” Recto affirmed, highlighting government measures that resulted in a significant 7.7 percent year-on-year decline in rice prices in March, a drastic improvement from last year’s 24.4 percent increase. This success was attributed to decisive actions, including the lowering of rice import tariffs and the reduction of the maximum retail price for imported rice.
Other government initiatives included expanded rice allocations for vulnerable groups, the continued rollout of various agricultural programs, and stricter import regulations to ensure food availability. The government also took steps to address price manipulation and protect both consumers and producers through the Anti-Agricultural Economic Sabotage Council.
Recto also noted energy sector measures aimed at stabilizing prices, including the Department of Energy’s Green Energy Auction and the Energy Regulatory Commission’s ordered refund to Meralco customers, providing financial relief to consumers. These steps, along with long-term structural reforms, are expected to contribute to more stable prices and improved economic stability.
Despite challenges, the government’s proactive measures in March have positioned the Philippines to sustain inflation control and continue fostering affordability for all sectors of society.
