The Bangko Sentral ng Pilipinas (BSP) projects overall inflation in March to settle within the range of 1.7 to 2.5 percent.

In February, overall inflation stood at 2.1 percent, slower than January’s 2.9 percent due to cheaper food and non-alcoholic beverages, data from the Philippine Statistics Authority show.

In a statement on Monday, the BSP said higher energy prices in March could slow down deceleration of overall inflation.

“Upward price pressures for the month emanate from higher electricity rates and higher prices for fish and meat,” the BSP said.

Rice prices easing

Last 11 March, Meralco announced a rate hike of P0.2639 per kilowatt-hour (kWh) as electricity demand increased due to the hotter weather.

Thus, the overall rate increased to P12.2901 per kWh from P12.0262 per kWh.

“Nonetheless, higher electricity, fish and meat prices are expected to be offset by lower prices of rice, fruits and vegetables, owing to favorable domestic supply conditions as well as the peso appreciation,” BSP continued.

According to the Bankers Association of the Philippines, the peso strengthened against the US dollar toward P57.21/$1 on Monday from a peak of P58.52/$1 in February.