MANILA -- Inflation in March is expected to range from 1.7 percent to 2.5 percent, the Bangko Sentral ng Pilipinas said on Monday.

The BSP said higher electricity rates and higher prices for fish and meat could quicken inflation, but other factors may also dampen it.

"Nonetheless, these are expected to be offset by lower prices of rice, fruits, and vegetables, owing to favorable domestic supply conditions as well as the peso appreciation," the central bank said. 

Inflation eased to 2.1 percent in February from 2.9 percent in January amid slower price increases in food and non-alcoholic beverages.

Meanwhile, BPI said March Inflation likely moderated to 2 percent. But the Ayala-led lender also said that this may be the lowest rate for the year "as global inflation risks begin to build alongside fading favorable domestic base effects."

BPI noted that prices of imported meat, as well as the prices of major food items like rice and vegetables have continued to decline amid improved supply conditions, supported by stable weather, increased importations, and relative currency stability.  

The bank said a lower inflation print may prompt the BSP to cut rates on its April meeting.  

"Global oil prices have also remained stable and the Peso has behaved at around the 57 level, making the timing more appropriate for a rate reduction," BPI said. 

The bank added that if the first quarter GDP growth numbers set to be released in May continue to underperform, the BSP may implement another rate cut by June.

"However, there are still risks that could cap the BSP’s rate cuts at just 50 bps this year," BPI said.

The Philippine Statistics Office is set to release the official inflation figures on Friday, April 4.