Philippine Inflation Eases to 1.3% in May, Lowest Since 2019

The Philippines’ annual inflation rate slowed to 1.3% in May, edging just below April’s 1.4% and marking the lowest level since November 2019, according to data released by the Philippine Statistics Authority on Thursday.

The latest reading aligns closely with economists’ expectations, as a Reuters poll had forecast a 1.3% inflation rate for the month. It also falls within the Bangko Sentral ng Pilipinas (BSP)’s projected range of 0.9% to 1.7%, reinforcing market views that inflation remains under control.

A key factor in the decline was the slower increase in housing, water, electricity, and fuel costs, which helped ease consumer price pressures across the country. Despite continued volatility in global markets, domestic inflationary trends appear to be stabilizing.

Core inflation, which excludes volatile items such as food and energy, stood at 2.2% in May. While slightly higher than headline inflation, this measure suggests that underlying price pressures remain relatively moderate and manageable.

The lower inflation print strengthens expectations that the BSP may maintain its current policy stance for now, as it balances price stability with the need to support economic growth.

The cooling inflation rate is a positive signal for Filipino consumers, especially amid concerns about rising living costs in previous months. With essential items like utilities and fuel showing a slower pace of increase, households may experience slight relief in their monthly expenses.

The May inflation data reinforces confidence in the government’s inflation management and is likely to influence the central bank’s future monetary policy decisions.

The next policy move will depend on whether inflation continues to stay within the target band in the coming months, especially as the global economy remains uncertain.