The Philippines' inflation rate eased to 6.8 percent in May, down from 7.2 percent in April, as timely government interventions helped mitigate upward pressures from high global oil prices, the Department of Economy, Planning, and Development (DEPDev) reported.
Key Inflation Figures
The Philippine Statistics Authority (PSA) announced on Friday that the year-to-date average inflation stood at 4.5 percent. The moderation was largely due to slower increases in transport costs, which rose 16.2 percent in May compared to 21.4 percent in April. Diesel price increases slowed to 58.5 percent from 122.7 percent, while gasoline rose 51.6 percent, down from 59.6 percent. This contributed to a decline in non-food inflation to 7.4 percent from 8.2 percent.
Electricity and Food Inflation
Electricity inflation, however, increased to 8.9 percent from 8.3 percent due to higher generation charges, tighter grid supply, and peso depreciation, offsetting fee suspensions and VAT exemptions under the Philippine Natural Gas Industry Development Act. Food inflation slowed to 5.8 percent from 6.1 percent, driven by slower price increases for vegetables (6.2 percent from 10.4 percent), fish (8.8 percent from 9.4 percent), and meat (-2.5 percent from -1.9 percent) due to oversupply. However, rice inflation rose to 15.6 percent from 13.7 percent, and corn inflation increased to 25.5 percent from 21 percent. Inflation also rose for flour, bread, and other cereals (3.5 percent from 3 percent).
Government Response
DEPDev Secretary Arsenio M. Balisacan emphasized the importance of targeted interventions, including fuel assistance for public utility vehicle operators and drivers, ensuring adequate fuel supply, and stabilizing food prices. The government plans to expand support for vulnerable sectors, procure fuel, explore alternative sources, and accelerate renewable energy transition. The El Niño Task Force will reconvene for cloud-seeding, solar-powered irrigation, and crop diversification.
Balisacan noted that while the easing is encouraging, price pressures remain elevated due to domestic shocks and geopolitical tensions. The UPLIFT Committee will continue monitoring inflation and pursue measures to strengthen food production, improve logistics, and support vulnerable sectors.
