Philippine inflation drops to 1.3% in May

Philippine inflation eased further to 1.3% in May from 1.4% in April, according to the Philippine Statistics Authority (PSA), marking the lowest rate since November 2019.

The decline was attributed to slower increases in housing costs and transportation expenses, along with a continued decrease in restaurant and accommodation services prices.

Food inflation remained steady at 0.7%, while rice prices saw a more significant drop of -12.8% compared to April's -10.9%. The PHP20 per kilogram rice program helped lower the average price of regular milled rice to PHP43.19 per kg from PHP51.11 in May 2024.

The Bangko Sentral ng Pilipinas (BSP) noted that another month of benign inflation supports its ongoing easing cycle and could lead to further interest rate cuts, potentially lowering loan charges for banks.

Speaker Martin Romualdez welcomed the continuing drop in inflation and assured Filipinos that legislative measures would be taken to ensure affordability of basic goods and services through programs such as amendments to the rice tariffication law and support for farmers.

The Marcos Administration reaffirmed its commitment to implementing policies aimed at mitigating inflationary pressures and safeguarding the purchasing power of Filipino families.