MANILA, April 4 (Xinhua) - The Philippines' annual inflation rate slowed further to 1.8 percent in March from 2.1 percent in February, driven by slower increases in food and non-food prices, the Philippine Statistics Authority (PSA) said on Friday.

PSA chief Dennis Mapa told a news conference that the slower annual increment in the index of food and non-alcoholic beverages primarily brought about the downtrend in the overall inflation in March at 2.2 percent from 2.6 percent in February.

Mapa attributed the easing of food inflation to the faster year-on-year decline in rice, which decelerated to -7.7 percent in March from -4.9 percent in February, as well as in meat from 8.8 percent to 8.2 percent, and vegetables, tubers, plantains, cooking bananas, and pulses from 7.1 percent to 6.9 percent.

"Also contributed to the downtrend was the faster year-on-year decrease in the transport index at 1.1 percent during the month from a 0.2 percent annual drop in February 2025," Mapa said.

He added that a slower inflation rate for restaurants and accommodation services was recorded, at 2.3 percent in March, compared to 2.8 percent in the previous month.

The March inflation rate brings the national average inflation from January to March 2025 to 2.2 percent. In March 2024, the inflation rate was higher at 3.7 percent.

The core inflation, which excludes selected food and energy items, slowed to 2.2 percent in March 2025 from 2.4 percent in February 2025.

In March 2024, core inflation was faster at 3.4 percent.

National Economic and Development Authority Secretary Arsenio Balisacan said the March inflation rate is the lowest since the height of the COVID-19 pandemic in May 2020, when inflation was 1.6 percent.

Balisacan said the Philippines will be vigilant regarding the potential implications of tariff increases announced by U.S. President Donald Trump.

Philippine exports to the United States will be subjected to a tariff of 17 percent.

"With or without the trade policy changes in the U.S., maintaining sound macroeconomic fundamentals, improving the ease of doing business, maximizing existing trade agreements, and forging new partnerships are still the most important strategies we can pursue to ensure that we protect the purchasing power of Filipinos and promote rapid, sustained, and inclusive growth," Balisacan said. Enditem

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