June 19 BSP interest rate cut anticipated

With inflation at its slowest pace in nearly six years in May, private-sector economists expect the Bangko Sentral ng Pilipinas (BSP) to continue reducing key borrowing costs this month.

- By DERCO ROSAL

Headline inflation slowed further to 1.3 percent last month from 1.4 percent in April, marking the lowest rate since November 2019, according to the Philippine Statistics Authority (PSA). Notably, the poorest households experienced no increase in overall prices.

According to the PSA, the continued easing of inflation in May was mainly due to the slower price movements in the housing, water, electricity, gas and other fuels sub-index. It clocked in at 2.3 percent in May from 2.9 percent in April.