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

The Philippines’ inflation rate continued its downward trend in May, falling to 1.3%—its lowest since November 2019—thanks largely to declining utility costs, according to the Philippine Statistics Authority (PSA).

National Statistician Claire Dennis Mapa reported the figure during a press briefing in Quezon City, noting that it falls within the Bangko Sentral ng Pilipinas’ (BSP) projected range of 0.9% to 1.7% for the month. This marks the fourth consecutive month of easing inflation and brings the year-to-date average to 1.9%, slightly below the government’s target range of 2% to 4%.

Undersecretary Rosemarie Edillon of the Department of Economy, Planning, and Development (DEPDev) hailed the slowdown as a sign of the government’s efforts to manage inflation effectively. She reaffirmed the administration’s commitment to targeted policies aimed at protecting Filipino purchasing power.

The main driver behind the deceleration was a significant drop in the Housing, Water, Electricity, Gas, and Other Fuels index, which eased to 2.3% from 5.4% in April—contributing 68.4% to the overall decline. Reductions in electricity and water rates, along with cheaper restaurant services and transport costs, also contributed to the easing.

Food inflation remained steady at 0.7%, significantly lower than the 6.1% recorded in May 2024. Meat, seafood, and dairy were the main contributors.

Inflation for the bottom 30% income households dropped to zero, driven by sharper price declines in food and transportation.

Regionally, Metro Manila’s inflation rate slowed to 1.7%, while nine other regions—particularly BARMM, SOCCSKSARGEN, and Northern Mindanao—recorded further month-on-month declines.

To further support consumers, the government cited new policy efforts, including an extended deadline for fish import permits, strengthened DA-FDA cooperation on animal vaccines, and the expansion of the “Benteng Bigas Meron Na” program. This initiative offers P20-per-kilo rice to vulnerable groups and is currently available in Metro Manila, Cebu, and several provinces, with more areas set to be covered in the coming months.