Inflation at 1.3% in May, lowest since 2019
MANILA, Philippines — The Philippine inflation rate continued to slow in May 2025, easing to 1.3% from 1.4% in April, according to the Philippine Statistics Authority (PSA).
The PSA noted this is the country’s lowest inflation rate since November 2019, when it reached 1.2%.
The inflation rate has been on a steady decline since January, which started at 2.9%. For the first five months of 2025, the average inflation rate stands at 1.9%.
Inflation in May was driven by increases in housing, water, electricity, gas and other fuels (3.1%), food and non-alcoholic beverages (0.9%), and restaurants and accommodation services (2.0%).
The PSA reported slower inflation in key commodity groups, including:
- Housing, water, electricity, gas and other fuels: 3.1%
- Restaurant and accommodation services: 2.0%
- Transport: 2.4%
- Household equipment and routine maintenance: 2.0%
Higher inflation, meanwhile, was recorded in alcoholic beverages and tobacco (3.8%), information and communication (0.4%), recreation, sport and culture (2.1%), and education services (4.3%).
For food inflation, meat, fish and dairy products were the main drivers.
Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon said the slowdown in inflation is encouraging and reflects government efforts to boost Filipinos’ purchasing power.
“We remain committed to executing the necessary measures to keep prices low and stable. With this, we are optimistic about the government meeting its headline inflation target of 2 to 4 percent for the year,” Edillon said.
The Bangko Sentral ng Pilipinas said the latest data indicates inflation remains within a manageable environment. Risks to inflation continue to come from transport charges, meat prices, and utility rates.
“The Monetary Board at the same time noted the more challenging external environment, which would likely dampen global growth prospects, and thereby pose a downside risk to global commodity prices and domestic economic activity,” the central bank said.
House of Representatives Committee on Ways and Means Chair Rep. Joey Salceda urged the government to use the lower inflation rate as an opportunity to spend more efficiently.
“We may not be able to increase total spending significantly, but we can spend faster and spend better. With inflation stable, the next step is a good budget. It must be focused, it must move quickly, and it must deliver results that people feel,” Salceda said.
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