Inflation down 1.3% in May

MANILA, Philippines — Lower prices of utility and energy costs pulled inflation down in May, the Philippine Statistics Authority (PSA) reported on Thursday.

Consumer price growth markedly slowed to 1.3 percent last month, slightly lower than the 1.4 percent recorded in the previous month and 3.9 percent in the same month last year.

This is the lowest inflation rate since November 2019 at 1.2 percent.

It hit the 1.3 percent median forecast of The Manila Times poll of economists and within the central bank's 0.9- to 1.7-percent estimate for the month.

“The downtrend in the overall inflation in May 2025 was primarily brought about by the slower annual increment in the index of housing, water, electricity, gas and other fuels at 2.3 percent in May 2025 from 2.9 percent in the previous month,” the PSA said in a statement.

Other key contributors were restaurant and accommodation services, which was recorded at 2.0 percent in May, down from 2.3 percent in April 2025.

Transport costs also saw a faster annual decline of 2.4 percent in May, compared to a 2.1 percent drop the previous month.

Core inflation, which excludes volatile food and energy items, remained at 2.2 percent in May, unchanged from the previous month but lower than last year's 3.1 percent.

To date, both headline and core inflation still fell within the central bank's 2.0 to 4.0 percent target at 1.9 percent and 2.5 percent, respectively.