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

Building permit approvals continued to fall in January

Approved building permits continued to decline by record double digits in January, the Philippine Statistics Authority (PSA) reported.

The PSA, citing preliminary data, said building projects covered by the permits numbered 12,526 in January, contracting by 14.6% from 14,665 a year earlier.

This was the second straight month that construction starts fell. January’s decline was steeper than the revised 5% year-on year drop logged in December last year.

It was the largest decline to date since the PSA began tracking the indicator on a monthly basis in January 2024. Previously, approved building permits data were released on a quarterly basis.

Building projects in January covered a floor area of 3.72 million square meters (sq.m), up 29.5% from a year earlier.

Construction projects represented by the permits were valued at P48.58 billion in January, 26.1% higher from P38.52 billion a year earlier.

Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said that the decline in construction activity can be an indicator of a “waiting” behavior from developers as they expect rate cuts this year, which can help them save costs in financing these projects.

“I expect this behavior to change this year as rate cuts are seen underway and the price of construction materials has stabilized,” he said.

Last year, the Bangko Sentral ng Pilipinas (BSP) slashed benchmark rates by a total of 75 basis points (bps) since its easing cycle in August, bringing policy rate at 5.75%.

However, in February during its first policy meeting this year, the BSP kept its policy settings, surprising market expectations and at the same time signaled fewer rate cuts this year.

BSP Governor Eli M. Remolona told Bloomberg in a televised interview last March 19 that the central bank could still cut rates next month up to 75 bps if economic output weakens.

Headline inflation rose 2.9% in January, steady as December.

In February, inflation slowed to 2.1%, bringing the average inflation rate in the first two months to 2.5%, within the central bank’s 2-4% target.

Additionally, retail price growth in the National Capital Region (NCR) eased to 1.2% in January, its weakest pace in five months.

Construction materials retail price index (CMRPI) in January was slower than the 1.5% in December and 1.4% recorded in January 2024.

On the other hand, construction materials wholesale price index (CMWPI) also slowed to a record 0.1% that month, lower than the 0.2% in December and 1.5% a year earlier.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices.

The PSA noted that residential had the highest number of constructions at 7,671 or 61.2% of the total number of constructions during the month.

However, this segment dropped 14.1% year on year. Residential projects were valued at P20.94 billion higher than the P16.35 billion in January 2024.

Single homes accounted for 89.5% of the residential category with approved permits contracting by 11.3% to 6,863.

Permits for apartment buildings fell by 35% to 708, while permits for duplex or quadruplex homes also went down by 13% to 80.

Nonresidential projects, on the other hand, slipped 4.3% to 3,138 from 3,278 from January 2024.

These projects accounted 25.1% of the total and were valued at P24.16 billion, 40.4% higher from a year ago.

Approved commercial constructions which made up 72.9% of the nonresidential category dipped by 3.1% to 2,288 from 2,362 in January 2024.

Institutional permits were also down by 0.6% to 480 while industrial permits fell 13.1% to 193.

Meanwhile, approved agricultural projects went down by 7.6% to 109 from 118 a year earlier. Other nonresidential projects contracted by 26.9 to 68 year on year.

Alteration and repair permits fell by 17% to 977 and were valued at P2.49 billion.

On the other hand, approved permits for additions, construction that increases the height or area of an existing building, surged 24.8% to 463 from 371 in January 2024.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved building projects, accounting for 26.2% of the total, with 3,279 construction projects, followed by the Central Luzon (1,314 permits) and Ilocos Region (1,135 permits).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide.

Source: Business World

Philippine unemployment rate rises to 4.3% in January

There were 2.16 million jobless Filipinos in January, up from 1.63 million unemployed in December as the wealth of seasonal jobs during the Christmas rush might have started to wane, the Philippine Statistics Authority (PSA) reported.

That was equivalent to an unemployment rate of 4.3 percent, worse than the 3.1 percent rate in December 2024.

At the same time, there were 6.47 million employed individuals who sought additional jobs or extra working hours in January to augment their income, higher than 5.48 million in the preceding month.

Philippine historical jobs data

That translated to an underemployment rate of 13.3 percent, worse than the 10.9 percent previously.

The unemployment rate also worsened from last year’s full-year average rate of 3.8 percent.

By broad industry group, services continued to be the top sector in terms of the number of employed persons with a share of 61.6 percent of total employed persons in January 2025. The agriculture and industry sectors accounted for 21.1 percent and 17.2 percent of the total number of employed persons, respectively.

Source: Inquirer