It is also higher than the forecast range set by the country’s monetary board.
According to the Bangko Sentral Ng Pilipinas (BSP) on Tuesday, April 7, the year-on-year headline inflation in the Philippines rose from 2.4 percent in February to 4.1 percent in March.
The figure is above the its forecast range of 3.1 percent to 3.9 percent for the month.
Meanwhile, on a month-on-month seasonally adjusted basis, headline inflation rose from 0.4 percent in February to 1.6 percent in March.
The acceleration of the headline inflation was mainly attributed to the surge in domestic petroleum prices, with diesel alone reaching beyond the PHP150 per liter mark as the ongoing Middle East conflict disrupted key global oil supply channels.
Likewise, electricity rates also rose due to higher transmission and generation charges.
Food inflation likewise increased due to higher domestic rice prices as farmgate prices rose due to the lean season, while postharvest, transport, and logistics costs for the grain also increased due to the mega oil price hikes implemented during the month.
The central bank noted that the inflation for households with incomes in the lowest 30 percent of the population also increased from 2.5 percent in February to 4.2 percent in March.
Core inflation, which excludes volatile food and energy items, also increased from 2.9 percent in February to 3.2 percent in March.
“Looking ahead, mounting risks to the inflation outlook require sustained vigilance,” said the board. “The BSP will carefully consider incoming data at its upcoming monetary policy meeting to assess the need for action in keeping with its price stability mandate.”
Meanwhile, the average inflation in Q1 2026 (January to March) also settled at 2.8 percent, which was below the BSP’s target of 3.0 percent for the full year, but was within the tolerance range of ±1.0 percentage point around the target.