Analysts Expect Inflation to Further Slow in March

Inflation likely slowed further in March amid easing food prices and lower transport costs, strengthening the case for the Bangko Sentral ng Pilipinas (BSP) to cut rates as early as April, analysts said.

- KEISHA TA-ASAN

The Philippine Statistics Authority is set to release the official March inflation data on April 4.

Union Bank of the Philippines chief economist Ruben Carlo Asuncion said inflation may have gone down to 1.8 percent in March from 2.1 percent in February. He estimated that inflation may continue to hit below two percent until June.

"These monthly forecasts suggest looming inflation hovering around the low end of the BSP's inflation target range of two to four percent," Asuncion said. "Without a doubt, the inflation forecasts support a rate cut of 25 to 50 basis points sooner than later."

If realized, March inflation would mark the slowest growth in nearly five years or since the 1.6 percent recorded in May 2020.