The annual inflation rate in the Philippines rose to 4.1% in March 2026, the highest since July 2024 and sharply above February’s 2.4%. The figure beat market expectations of 3.6%, breached the central bank’s 2–4% target range, and exceeded its own March forecast of 3.1%–3.9%. The acceleration was driven primarily by oil price shocks and a steep depreciation of the local currency.
Transportation costs recorded the strongest increase, surging 9.9% year-on-year after a 0.3% decline in February. This was mainly due to sharp jumps in fuel prices, with gasoline and diesel up 27.3% and 59.5%, respectively, together accounting for 54.8% of the overall pickup in inflation.
Price pressures broadened across almost all major components. Food and non-alcoholic beverages inflation rose to 3% from 1.8%, housing and utilities to 4.5% from 3.5%, clothing and footwear to 2.6% from 2.4%, and furnishings to 3.1% from 2.9%.
On a monthly basis, the consumer price index jumped 1.4%, the largest increase since January 2023 and well above February’s 0.2% gain. Meanwhile, annual core inflation climbed to 3.2%, its highest level since April 2024.
