BSP forecasts May inflation at 1.3%, two more rate cuts likely

The Bangko Sentral ng Pilipinas (BSP) forecasts May 2025 inflation at between 0.9 percent and 1.7 percent, with a median estimate of 1.3% from a BusinessWorld poll.

A strong peso and moderating global oil prices have lowered the cost of energy, while food supply has improved due to better weather conditions, leading to lower rice prices.

However, higher vegetable and meat prices may partially offset these positive factors.

Inflation dropped to 1.4 percent in April, marking its third straight month below 2% and the lowest since November 2019.

The Monetary Board will maintain a measured approach in adjusting monetary policy to support price stability and sustainable economic growth, with at least two more rate cuts likely this year amid benign inflation.

Official May 2025 inflation data will be released by the Philippine Statistics Authority on June 5, with another meeting scheduled for June 19 to decide on policy settings.