The Philippine Statistics Authority (PSA) announced that the country's inflation rate eased to 6.8% in May 2026, down from 7.2% in April 2026. According to the report, the decline was driven by slower price increases for food, particularly rice, vegetables, and meat, as well as lower electricity charges and some services.
Inflation Still Above Target
Although the rate remains high compared to the Bangko Sentral ng Pilipinas (BSP) target range of 2% to 4%, economists view the gradual slowdown as a positive sign. PSA data shows food inflation dropped to 8.5% from 9.1% in April, while non-food items such as transportation and housing utilities also exhibited slower increases.
BSP Monitoring and Outlook
The BSP stated it will continue to monitor factors such as global oil prices and the impact of El Niño on food supply. Additionally, improved supply chains and rice imports are expected to help sustain price declines in the coming months. The easing of inflation is seen as providing relief to consumers, especially low-income families directly affected by rising basic goods prices.
However, maintaining this trend remains a challenge for the government to bring inflation back to lower levels by the end of the year.
