Headline inflation in the Philippines continued to slow, easing to 1.3 percent year-on-year in May from 1.4 percent in April, according to the latest data. This figure falls within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 0.9 to 1.7 percent for the month. The average inflation rate for the first five months of 2025 now stands at 1.9 percent—well below the government’s target range of 2 to 4 percent.

On a month-on-month seasonally adjusted basis, inflation slightly increased to 0.2 percent in May from -0.1 percent in April. Core inflation, which excludes volatile food and energy items, remained steady at 2.2 percent.

The continued moderation in inflation was primarily driven by slower price increases in non-food items, particularly lower electricity rates and declining domestic petroleum prices. Food inflation remained unchanged as falling rice prices—supported by lower global prices, strong supply from the dry season harvest, and government stabilization efforts—were offset by price hikes in fish, fruits and nuts, vegetables, and meat.

The BSP noted that the latest figures reinforce its outlook of a manageable inflation environment amid easing commodity price pressures. The central bank is set to review its monetary policy stance at the next meeting of the Monetary Board on June 19, 2025.