The March 2024 inflation rate of 3.7 percent falls within the BSP’s projected range of 3.4 to 4.2 percent.
The outcome aligns with the BSP’s expectations that inflation will likely remain within the target range during Q1 2024, primarily due to negative base effects.
However, there is a possibility that inflation could temporarily exceed the target range in the next two quarters due to adverse weather conditions affecting domestic agricultural output and positive base effects.
The inflation outlook carries upside risks. These risks may arise from increased transport charges, higher prices for food commodities facing supply constraints, elevated electricity rates, global oil price fluctuations, and the implementation of a legislated minimum wage increase.
Looking forward, the Monetary Board will take the latest inflation data into account during its upcoming monetary policy meeting on April 8, 2024.
Additionally, the BSP continues to support non-monetary measures by the National Government to address supply-side pressures on prices and maintain the disinflation process.