The Philippines' inflation rate held steady at 8.5 per cent in March, no change from the previous month amid lower prices of food and utilities, the government said Tuesday. The index, however, was up from 4.2 per cent in the same month last year, the National Statistics Office (NSO) said. The NSO said decreases in the prices of food and utilities offset the rise in the costs of clothing, housing and repairs and services in March. The food index alone eased to 7.4 per cent in March from 7.8 per cent the previous month. While the March inflation rate was the same as the previous month and the central bank predicts an decelerating trend, it warned that inflationary pressures remained. "There are risks to the outlook that could raise inflation expectations," said deputy central bank governor Amado Tetangco. "It is important to prevent these from seeping into the demand side." The March index brought to 8.4 per cent the average inflation rate for the first three months of the year.
