Date: April 2003

Inflation Slows to 2.9 Percent in March

The country's annual inflation rate slowed to 2.9 percent in March from 3.1 percent in February, mainly because of slower increases in the prices of food and miscellaneous items last month. This brought the average inflation rate to 2.9 percent in the first quarter of the year.

In its latest monthly inflation report, the National Statistics Office (NSO) said that prices of consumer products and services went up by 3.1 percent in Metro Manila and by 2.9 percent in areas outside the metropolis in March.

On the average, the first quarter inflation rate was estimated at 3.3 percent in Metro Manila and 2.7 percent in areas outside Metro Manila.

Prices also slowed to 0.1 percent on a monthly basis in March from 0.2 percent in February because of the decline in the prices of corn, eggs, fish, fruits and vegetables.

Inflation Rate, Mar 2003 (In Percent)
	YoY	MoM
Average	2.9	0.1
Food, Bev., Tob.	1.8	-0.3
Food	1.8	-0.3
Clothing	2.0	0.2
Housing, Repair	2.7	0.2
Fuel, Light, Water	5.2	1.4
Services	6.7	0.5
Miscellaneous	1.6	0.2
Source: National Statistics Office

By commodity group, price movement in food, beverage and tobacco (FBT) slowed to 1.8 percent in March from 2.3 percent in February. On a monthly basis, food prices actually dropped 0.3 percent in March. Among the items whose prices dropped last month are fruits and vegetables, eggs, and meat. Slower increases were also noted in the prices of corn, fish, and miscellaneous foods.

In March, the annual inflation rate for clothing was estimated at 2 percent; housing and repair, 2.7 percent; fuel, light and water, 5.2 percent; services, 6.7 percent and miscellaneous items, 1.6 percent.

On a monthly basis, prices of clothing rose by 0.2 percent in March; housing and repair, 0.2 percent; fuel, light and water, 1.4 percent; services, 0.5 percent; and miscellaneous items, 0.2 percent.

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