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Year-on-year inflation in the Philippines slowed further to 7.6 per cent in March from 8.6 per cent in February due to the reduction of food and transportation costs, authorities said on Wednesday.

Philippine Statistics Authority (PSA) data showed the inflation rate in March 2022 was lower at 4 per cent, reports Xinhua news agency.

The average inflation rate for the first quarter of this year stood at 8.3 per cent.

In a news conference, PSA head Dennis Mapa said the heavily-weighted food and non-alcoholic beverages, which recorded a lower inflation rate at 9.3 per cent from 10.8 per cent in February, was the main driver of the continued downtrend of the overall inflation in March.

Mapa added transport came second, with an inflation rate of 5.3 per cent from 9.0 per cent in the previous month, and the third primary driver was housing, water, electricity, gas and other fuels, which recorded a 7.6 per cent inflation rate from 8.6 per cent in February.

Health and information and communication commodity groups also contributed to the lower March inflation, he said.

"While inflation is beginning to slow, it remains the most pressing issue the government must monitor and urgently address," National Economic and Development Authority Secretary Arsenio Balisacan said.

Meanwhile, the PSA said the core inflation, excluding volatile food and energy items in the headline inflation, rose to 8 per cent in March from 7.8 per cent in February.

The Manila-based Asian Development Bank (ADB) forecasts inflation in the Philippines to average 6.2 per cent in 2023 before easing to 4 per cent in 2024.

It also expects the Philippine economy to grow by 6.0 per cent this year, and to climb further by 6.2 per cent in 2024.

The ADB said local food supply constraints and rising global commodity prices led to high inflation rates in early 2023.

Inflation is projected to decelerate in the second half of 2023 and through 2024 as the series of monetary policy tightening take effect and global commodity prices ease.