Inflation rate eases for 4th straight month at 1.3% in May

The Philippines’ inflation rate eased further for a fourth month in a row in May on the back of a slowdown in utility costs during the period, continuing its deceleration trend back to pre-pandemic levels, according to the Philippine Statistics Authority (PSA).

At a press briefing in Quezon City on Thursday, National Statistician and PSA chief Claire Dennis Mapa reported that last month’s inflation print —which measures the rate of growth in consumer goods and services costs— slowed down to 1.3% from 1.4% in April.

This was consistent with the Bangko Sentral ng Pilipinas’ (BSP) forecast that the inflation rate will settle within the 0.9% to 1.7% range in May.

It was also the slowest since November 2019, when inflation settled in at 1.2%.

“We are encouraged by this development. It reflects the success of our sustained efforts to protect the purchasing power of Filipinos and ensure a more affordable cost of living,” Department of Economy, Planning, and Development (DEPDev) officer-in-charge and Undersecretary for Policy and Planning Rosemarie Edillon said in a statement.

'Optimistic'

May’s inflation rate brought the year-to-date rate to 1.9%, falling slightly below the government’s ceiling of 2% to 4% for the entire 2025.

“We are optimistic about the government meeting its headline inflation target of 2% to 4% for the year,” Edillon said.

The DEPDev official said the government remains committed to executing the necessary measures to keep prices low and stable. 

“Ang pangunahing dahilan ng mas mababang antas ng inflation nitong Mayo 2025 kaysa noong Abril 2025 ay ang mas mabagal na pagtaas ng presyo ng Housing, Water, Electricity, Gas and Other Fuels sa antas na 2.3%,” Mapa said.

(The main reason for the easing of the inflation rate in May 2025 versus April 2025 was the slower increase in Housing, Water, Electricity, Gas and Other Fuels [index] with a rate of 2.3%.)

In April, the inflation rate for the utilities index was at 5.4%.

“Ito ay may 68.4% share sa pagbaba ng pangkalahatang inflation sa bansa,” he said.

(This had a 68.4% share in the overall decline in inflation. in the country.)

The major contributors to the decline in utilities’ inflation rate were electricity, down to 2.8% from 5.4%, and water at 5.7% from 6.3%.

Also contributing to the overall downtrend was Restaurant and Accommodation Services index, which saw a decline to 2% from 2.3% month-on-month.

The third major contributor to May inflation’s deceleration was the stronger contraction in Transport index at -2.4% from -2.1% in April.

Food inflation

Food inflation, which tracks the price movements of food items in a "basket" commonly purchased by households, was steady at 0.7%—the same level seen in April.

In May 2024, food inflation was at 6.1%. 

The top three food groups in terms of contribution to food inflation during the period were as follows:

• Meat and other parts of slaughtered land animals with a share of 216.6% or 1.5 percentage points
• Fish and other seafood with a share of 133.6% or 0.9 percentage point
• Milk, other dairy products and eggs with a share of 55.8% or 0.4 percentage point

Bottom 30%

Meanwhile, inflation felt by the bottom 30% income households in the country saw no change or a zero percent inflation rate in May.

This was amid the sharper contraction in inflation rates in the Food and Non-Alcoholic Beverages index at -1.6% from -1.2% as well as the further deflation in the Transport index at -1.9% from -1.4%.

For economic class, food inflation also declined significantly to 2% from 8.2% year-on-year.

Tracking the national trend, the inflation rate in Metro Manila also slowed down to 1.7% from 2.4% in April.

Likewise, other regions outside the National Capital Region maintained a low average inflation rate of 1.2%, with nine regions—including Region XII (SOCCSKARGEN), Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), and Region X (Northern Mindanao)—recording lower inflation rates month-on-month.

“To sustain this downward trend, the Marcos Administration reaffirmed its commitment to implementing targeted policies aimed at mitigating inflationary pressures and safeguarding the purchasing power of Filipino families,” said Edillon.

The DEPDev official cited the strengthening collaboration between the Food and Drug Administration (FDA) and the Department of Agriculture (DA) to ensure the availability of safe and effective animal vaccines amid ongoing African Swine Fever (ASF) and Avian Influenza outbreaks. 

The DA’s Bureau of Animal Industry is assessing the controlled ASF vaccination campaign. 

The DA and the FDA have both expressed optimism on the commercial rollout of the ASF vaccine before the end of the year.

“The DA also extended the deadline for the issuance of fish import permits to the end of June 2025 to provide more time for importers to comply with the revised guidelines. The previous guidelines were amended to enhance the timeframe and product coverage, ensuring the availability of supplies in the source countries. With this, the DA expects the adjustment to encourage full utilization of the approved import volume,” said the DEPDev official.

Edillon also cited the “Benteng Bigas Meron Na” initiative, launched on May 15, 2025, which allows vulnerable groups such as the 4Ps beneficiaries, senior citizens, persons with disabilities, and single parents to avail of P20 per kilo of milled rice from the National Food Authority (NFA).

To date, the P20 per kilo rice is available in KADIWA Centers in Metro Manila, Cebu, Bulacan, Cavite, Laguna, Mindoro, and Rizal. 

Phases 2 and 3 of the program will be implemented in July and September, covering more areas across Visayas and Mindanao. —VAL, GMA Integrated News