Inflation eases to 1.8% in March 2025

Philippine inflation continued to ease with the March 2025 inflation rate declining to 1.8% from 2.1% in the previous month, according to the Philippine Statistics Authority (PSA).

March 2025’s inflation rate showed a drop from the same month in 2024, which was at 3.7%. 

The PSA said the national average inflation rate from January to March is currently 2.2%. 

The lowered inflation rate was brought by the slower rise of food and non-alcoholic beverage prices at 2.2% in March 2025, said the PSA. February 2025’s food and non-alcoholic beverage inflation rate was 2.6%. 

There was also a slower inflation rate for transport at -1.1% in March 2025, compared to the decline in February 2025 at -0.2%.  

The PSA also said the prices for restaurants and accommodation services were increasing at a slower rate for March 2025 at 2.3% from 2.8% in February 2025. 

Slower inflation rates were also recorded in the following commodity groups, with their current inflation rates in March 2025 compared to February 2025: 

• Clothing and footwear: 1.8% (down from 2.1%) 

• Furnishings, household equipment and routine household maintenance: 2.1% (down from 2.3%)  

• Health: 2.2% (down from 2.3%) 

• Recreation, sport and culture: 2.2% (down from 2.4%) 

However, several commodity groups still recorded higher inflation rates, namely: 

• Alcoholic beverages and tobacco: 3.6% (up from 3.4%) 

• Housing, water, electricity, gas and other fuels: 1.7% (up from 1.6%) 

• Information and communication: 0.4% (up from 0.3%)

Food and non-alcoholic beverages were the main contributors to the overall inflation rate, as well as housing, water, electricity, gas and other fuels. Despite the drop in inflation rate, restaurants and accommodation services were also a contributor to the overall increase of the prices of goods.

Core inflation, which does not include volatile goods such as food and energy, also slowed down, going from 2.4% in February 2025 to 2.2% in March 2025. 

The National Economic and Development Authority (NEDA) said this is the lowest inflation rate since the COVID-19 pandemic. In May 2020, inflation was 1.6%. 

“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,” NEDA Secretary Arsenio Balisacan said in a statement. 

Food inflation 

Food inflation has eased to 2.3% in March 2025 from 2.6% in February 2025. 

Rice was the largest contributor to the decline in food inflation. Rice inflation fell further from -4.9% in February 2025 to -7.7% in March 2025. 

Inflation rate for meats and other slaughtered land animals declined from 8.8% in February 2025 to 8.2% in March 2025. 

The inflation rate of vegetables, tuber, plantains, cooking bananas and pulses also declined from 7.1% in February 2025 to 6.9% in March 2025. There was also a decline in corn. As it went from -1.6% in March 2025 compared to the 0.7% the previous month. 

Meanwhile, higher inflation rates were recorded among the following in March 2025: 

• Fish and other seafood: 5.5% (up from 2.9%) 

• Milk, other dairy products and eggs: 3.4% (up from 2.7%) 

• Oils and fats: 4.0% (up from 3.5%) 

• Ready-made food and other food products not elsewhere classified: 3.8% (up from 3.7%) 

Source: Philstar

Filipinos struggling on meager income

IBON Foundation said that involuntary hunger doubled under the administration of President Ferdinand Marcos Jr.

In a statement, IBON said the administration failed to ensure higher wages and low prices.

"The rise in hunger is a wake-up call that many Filipinos are struggling on meager incomes and the high cost of living. This shows government's rhetoric of economic gains and a robust jobs market is empty — just like the bellies of millions of hungry Filipinos," the group said.

Citing figures from a Social Weather Stations (SWS) survey, the number of Filipinos experiencing involuntary hunger more than doubled since the start of the Marcos administration, from 11.6 percent or 2.9 million families in June 2022 to 27.2 percent or 7.5 million families in March of this year.

IBON said the average daily minimum wage of P469 falls way below the P1,227 family living wage needed by a family of five, as of February this year.

"An indirect indicator of low incomes is the number of households without savings in any form increasing to 20.1 million, or 74 percent of the total, in the fourth quarter of 2024, based on Bangko Sentral ng Pilipinas (BSP) data.

Meanwhile, the overall price level of food has increased by 16 percent between June 2022 and February 2025, according to inflation data from the Philippine Statistics Authority," it said in a statement.

The group said that "persistent low incomes and high prices" are also behind the rise in hunger.

Source: Business World

Infrastructure spending declines in December

Infrastructure spending slumped by nearly 20% in December, but still exceeded the full-year program, the Department of Budget and Management (DBM) said.

Latest data from the DBM showed that spending on infrastructure and other capital outlays fell by 19.8% or P36.3 billion to P146.7 billion in December 2024 from P183 billion in the same month in 2023.

“This was attributed to the combined impact of the base effects of high capital disbursements in 2023, as well as the ongoing processing and release of cash allocations for payments of completed and ongoing capital outlay projects of various departments/agencies during the latter part of 2024,” the DBM said.

For the full-year, expenditures on infrastructure and other capital outlays jumped by 10.1% to P1.33 trillion from P1.2 trillion in 2023. This also exceeded the P1.24-trillion program by 6.7%.

The DBM attributed the faster infrastructure spending to the implementation of the Department of Public Works and Highways’ (DPWH) banner infrastructure projects as well as defense modernization projects of the Department of National Defense.

DBM data showed overall infrastructure disbursements rose by 8.9% to P1.545 trillion in 2024 from P1.42 trillion in 2023. It exceeded the P1.473-trillion program for 2024 by 4.9%.

“This was equivalent to 5.8% of GDP, well within the 5-6% target for 2024 and sustaining the 5.8% outturn in 2023,” the department said.

Infrastructure disbursements also include infrastructure components of subsidy and equity to government-owned and -controlled corporations and transfers to local government units.

“This was credited mainly to the accelerated infrastructure spending of the DPWH for its accelerated implementation of construction activities, particularly from carry-over or previous years’ projects, progress billings from completed ongoing infrastructure projects, as well as the direct payments made by development partners for foreign-assisted rail projects of the Department of Transportation,” the DBM said.

Oikonomia Advisory and Research, Inc. Economist Reinielle Matt M. Erece said the P122.2-billion increase in infrastructure and capital outlays in 2024 was partly driven by defense modernization programs of the government.

“This can be in response to the heightened geopolitical tensions felt by a lot of countries,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said faster infrastructure spending last year can be partly attributed to preparations for the May elections.

“(This is) part of the preparations for the midterm elections, as basis for accomplishments that are consideration for the voters to choose some candidates based on their completed projects and programs,” he said.

Mr. Ricafort said the government likely expedited infrastructure projects in the first three months of 2025 ahead of the election ban.

The Commission on Elections’ ban on public works spending began on March 28 and will run for 45 days. The midterm elections are scheduled for May 12.

Mr. Erece said he expects slower infrastructure spending as the government “reviewed and removed some of the unprogrammed appropriations and other expenses that the administration felt were unneeded, at least in the short term.”

Source: Business World