The national annual headline inflation rate continued to decelerate to 2.6 percent in March from 2.7 percent in February. The indices of alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; transport; recreation and culture; and restaurants and miscellaneous goods and services posted slower annual increases during the month. Inflation in March 2011 was 4.8 percent.

The annual headline inflation rate in the Philippines further settled downward to 2.7 percent in February from 4.0 percent in January. This was primarily due to the slowdown in the annual growth rate of the heavily-weighted food and non-alcoholic beverages index. Slower annual increments in all the other commodity groups except in health and recreation and culture indices were also noted during the month. Compared to February 2011, inflation declined by two percentage points. This is the lowest rate since October 2009.

The annual headline inflation rate of the country in July remained at its June figure of 3.9 percent. Higher annual growth rates posted in food, beverages and tobacco (FBT), housing and repairs (H&R) and services were offsetted by the slower increments in fuel, light and water (FLW) and miscellaneous items. Inflation a year ago was 0.2 percent.