A drop in food, fuel, electricity and transport costs in March has reduced inflation in the Philippines to 6.4%, the government said Tuesday.
The inflation rate was within the 5.9% to 6.8% range forecast for the month, and lower than the 7.3% posted in February, central bank Governor Amando Tetangco said.
The National Statistics Office said the yearly inflation rate was at 6.9%, lower than 7.1% in February.
Tetangco said “appropriate monetary and trade policies contributed to the more subdued price movement.”
He said the slowdown in price increases indicates the government will achieve its inflation target for 2009 of 2.5% to 4.5%, down from 9.3% in 2008. Last year, inflation peaked at 12.5% in August.