Philippine inflation hits lowest in almost 6 years at 1.3%

Philippine inflation slowed to 1.3% in May, the lowest in nearly six years and within the Bangko Sentral ng Pilipinas' forecast range of 0.9% to 1.7%.

This decrease was primarily driven by slower price increases in housing, water, electricity, gas, and other fuels, with utility costs slowing to 2.3% from 2.9% in April.

Electricity price growth eased to 2.8% from 5.4% in April, while water bills moderated to 5.7% from 6.3%.

Rice inflation significantly declined to 7.7% in May from a 12.8% increase in January, with the government's P20 per kilogram rice program expected to contribute to continued price decreases.

Core inflation remained stable at 2.2% in May, and headline inflation has decelerated for four consecutive months.

The Bangko Sentral ng Pilipinas expects inflation to settle at 2.3% for the full year, noting the continued easing of commodity price pressures.