Inflation cools to 2.5% in March

Inflation slowed further to 2.5% in March, amid the spread of the coronavirus disease 2019 (COVID-19) in the country.

The latest figure is a deceleration from 2.6% in February, and the 3.3% in March last year.

It is also the same reading as December 2019, the slowest since inflation clocked in at 1.3% in November 2019.

The Philippine Statistics Authority (PSA) attributed the slowdown to the drop in transport prices during the month.

"The slowdown in inflation was primarily due to transport index dropping to 1.8%," it said in a statement.

Data available from the Department of Energy (DOE) showed year-to-date adjustments of pump prices stood at a net decrease of P12.75 per liter for gasoline, P12.89 for diesel, and P16.25 for kerosene as of March.

Transport was also hit during the month as the government placed the National Capital Region (NCR) on quarantine starting March 15, and the entire Luzon under enhanced community quarantine starting March 17.

Slower annual increments were also seen in alcoholic beverages and tobacco at 18%; and housing, water, electricity, gas, and other fuels at 1.1%.

"Excluding selected food and energy items, core inflation slowed down further to 3.0 percent in March 2020," said the PSA.—AOL, GMA News