Philippines Posts Lower Inflation Rate in May 2025
Inflation rate in the Philippines for May decreased to 1.3%
Manila, PH - Good news for the Philippines as their annual inflation rate for May 2025 dipped slightly below the previous month's 1.4% rate, marking the lowest since November 2019, according to the stats agency.
economists polled by our website had predicted an annual inflation rate of 1.3% for May 2025, falling within the central bank's forecast range of 0.9%-1.7%.
The agency pointed out that the rate of increase in housing, water, electricity, and certain fuel costs eased in May 2025. This likely played a significant role in reducing the inflation rate.
The annual core inflation rate, which omits volatile food and energy prices, stood at 2.2% for May 2025.
It's worth noting that, in the case of bottom 30% income households, food inflation dropped significantly from 8.2% in May 2024 to 2.0% in May 2025. This decline is critical as food inflation is a core element in the Consumer Price Index (CPI). A decreased food inflation rate can lead to a drop in overall inflation.
The Philippine government's ongoing efforts to preserve purchasing power and maintain affordability could be another contributing factor to the lower inflation rate.
Interestingly, the core inflation rate remained unchanged at 2.2% in April 2025, suggesting that the underlying inflationary pressures were not intensifying. This stability in core inflation can contribute to a lower overall inflation rate.
Unfortunately, there's no detailed data available regarding the factors contributing to the inflation rate for May 2021. However, understanding the general factors mentioned above can help us comprehend declines in inflation rates over time.
The shrinking inflation rate could positively impact the finance sector, as lower inflation reduces borrowing costs and promotes economic growth. The lower core inflation rate, especially for the bottom 30% income households, may also mean improved purchasing power and affordability for consumers.
