The Philippines’ inflation rate eased to 6.8 percent in May, down from 7.2 percent in April, marking a slight slowdown in the pace of price increases and coming in below the Bangko Sentral ng Pilipinas’ (BSP) forecast range.
Data released by the Philippine Statistics Authority (PSA) showed that the May inflation rate was lower than the BSP’s projected range of 7.1 percent to 7.9 percent for the month. Despite the decline, inflation remains elevated and continues to put pressure on household budgets.
National Statistician and Civil Registrar General Claire Dennis Mapa said the slower inflation was primarily driven by easing price increases in transportation, food, and housing-related expenses, including electricity, gas, and other fuels.
A key factor behind the moderation was the slowdown in diesel price inflation. Mapa noted that diesel inflation dropped to 58.5 percent in May from a triple-digit rate of 122.7 percent recorded in April.
While fuel prices remained affected by geopolitical tensions in the Middle East, Mapa said some commodities posted lower month-on-month prices, helping reduce overall inflation.
“Some items registered lower prices while others increased, but overall inflation for the basket of goods declined,” he said.
The PSA, however, remains cautious as potential risks to prices persist. Authorities are closely monitoring the impact of the approaching typhoon season and the expected effects of El Niño on food production and supply.
Rice prices also continue to be a major concern, given the commodity’s significant share in the average Filipino household’s spending basket.
Mapa said rice inflation remains a key driver of higher living costs, particularly among lower-income households.
For the bottom 30 percent of income earners, inflation was recorded at 8.4 percent in May, significantly higher than the national average, largely due to rising prices of rice and gasoline.
Despite the slowdown in May, the country’s average inflation rate for the first five months of the year stood at 4.5 percent, still above the government’s target range of 2 to 4 percent.
Economists and policymakers continue to watch inflation trends closely as they assess the impact of global oil prices, weather disturbances, and food supply conditions on consumer prices in the months ahead.
