Economists

"If inflation were to surprise again to the downside, the risk of a back-to-back rate cut in June would likely increase," he added.

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UnionBank chief economist Carlo Asuncion also sees May inflation at 1.3 percent, which he believes will mark the low point for the year.

"From there, we see a gradual pickup — reaching around 1.9 percent by August during the typhoon season and breaching two percent later in the year," he said.

UnionBank has cut its full-year inflation forecast to 1.8 percent from 2.2 percent, with a year-end projection of 2.6 percent.

Asuncion said the benign outlook is underpinned by stable oil prices, limited cost pressures from China and a steady peso. "These factors help offset the impact of higher US tariffs," he said. "This strengthens the case for a BSP rate cut at the June 19 policy meeting."