Global oil price drop, price freeze to slow March inflation —BSP

Inflation or the rate of increase in the prices of commodities is seen to decelerate to as slow as 2.0% in March on the back of global drop in petroleum prices and price freeze imposed in light of the state of emergency due to coronavirus disease 2019 (COVID-19) threat.

The Bangko Sentral ng Pilipinas (BSP) said Tuesday its Department of Economic Research projects March 2020 inflation to settle within the 2.0% to 2.8% range.

“The sharp decline in the prices of petroleum products due to the significant fall in global crude oil prices contributed to the downward price pressures for the month,” the central bank said.

“In addition, the prices of selected food products remained broadly stable in March due to adequate supply and favorable weather conditions along with the price freeze imposed on basic necessities by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA),” it added.

The BSP also cited the slightly higher electricity rates in Meralco-serviced areas.

“Going forward, the BSP will continue to monitor economic and financial developments, and stands ready to implement appropriate policies in support of its primary mandate of price stability conducive to balanced and sustainable economic growth,” it said.—AOL, GMA News