Inflation Eases Further, Hits 5-Year Low in May

Inflation in the country continued to ease in May, slowing to its lowest level in over five years due primarily to the downtrend in utility costs, the Philippine Statistics Authority (PSA) said.

- By Louella Desiderio

Headline inflation slowed further to 1.3 percent in May from 1.4 percent the previous month and 3.9 percent in May 2024, National Statistician Dennis Mapa said at a press conference yesterday.

The headline inflation, or the rate of increase in average prices of goods and services typically purchased by a Filipino household, was the lowest since November 2019 when inflation was at 1.2 percent.

Driving the downtrend in inflation was the slower increase in housing, water, electricity, gas and other fuels at 2.3 percent in May from the previous month's 2.9 percent.

Another major driver of the lower May inflation was restaurant and accommodation services, which posted a slower uptick of two percent last month from 2.3 percent in April.

In addition, the transport commodity group posted a faster decline of 2.4 percent in May from a 2.1-percent drop in the previous month.

Food inflation was steady at 0.7 percent and significantly lower than the 6.1 percent registered in the same month last year.

Inflation for rice was at -12.8 percent in May from -10.9 percent in April.