MANILA, Philippines — The country’s inflation eased for the third straight month in March 2025, settling at 1.8 percent, down from 2.1 percent in February, the Philippine Statistics Authority (PSA) reported on Friday.

This brings the average inflation rate for the first quarter of 2025 to 2.2 percent, well within the government’s 2 to 4 percent target range. In comparison, headline inflation was at 3.7 percent in March last year.

The PSA attributed the continued downtrend to slower price increases in food and non-alcoholic beverages, as well as a sharper drop in transport costs. Inflation for food and drinks eased to 2.2 percent from 2.6 percent in February, while transport saw a 1.1 percent decline, compared to a 0.2 percent drop a month earlier.

Prices of goods and services related to restaurants and accommodation also decelerated to 2.3 percent from 2.8 percent.

Other commodity groups that posted slower inflation were clothing and footwear (1.8% from 2.1%), furnishings and household maintenance (2.1% from 2.3%), health (2.2% from 2.3%), and recreation and culture (2.2% from 2.4%).

However, some sectors saw higher prices. Alcoholic beverages and tobacco rose to 3.6 percent from 3.4 percent; housing, utilities, and fuel ticked up to 1.7 percent from 1.6 percent; and information and communication increased slightly to 0.4 percent from 0.3 percent.

Food inflation, which accounts for a major portion of household spending, further dropped to 2.3 percent in March from 2.6 percent in February — a significant improvement from 5.7 percent recorded in the same month last year.

The sharpest decline was seen in rice, with prices falling by 7.7 percent year-on-year, accelerating from a 4.9 percent decrease in February. Meat inflation also eased to 8.2 percent from 8.8 percent, while vegetables dropped to 6.9 percent from 7.1 percent.

The PSA also noted that core inflation, which excludes volatile food and energy items, slipped to 2.2 percent in March from 2.4 percent in the previous month. It was at 3.4 percent in March 2024.

Regional Trends

In the National Capital Region (NCR), inflation also eased to 2.1 percent in March from 2.3 percent in February, mainly due to slower increases in food and transport costs.

Meanwhile, inflation in areas outside NCR dropped to 1.8 percent from 2.0 percent. SOCCSKSARGEN posted the lowest regional inflation at -0.2 percent, while Cagayan Valley recorded the highest at 2.9 percent.