Philippines inflation slows to 1.3% in May, BSP sees stability ahead

Headline inflation in the Philippines continued to slow, easing to 1.3 per cent year-on-year (YoY) in May from 1.4 per cent in April, according to official data.

The figure fell within the projected forecast range of 0.9 to 1.7 per cent and brought the average inflation for the year-to-date to 1.9 per cent—below the government’s target range of 2 to 4 per cent.

On a month-on-month (MoM) seasonally adjusted basis, inflation rose slightly to 0.2 per cent in May, following a -0.1 per cent decline in April. Core inflation, which excludes volatile food and energy prices, remained unchanged at 2.2 per cent.

The continued moderation in inflation was largely attributed to slower price increases for non-food items. Declines in electricity rates and domestic petroleum product prices helped ease non-food inflation.

The Bangko Sentral ng Pilipinas (BSP) said the latest data support its view of a manageable inflation environment, as commodity price pressures continue to abate.

ALCHEMPro News Desk (HU)