THE Bangko Sentral ng Pilipinas (BSP) projects headline inflation for May 2025 to settle between 0.9 percent and 1.7 percent, reflecting easing price pressures from key commodities and favorable supply-side conditions.
In a statement, the BSP said the continued decline in the prices of rice and fish, attributed to improved domestic supply, contributed to the lower inflation forecast. Additional downward pressure came from declining global oil prices, reduced electricity rates and the appreciation of the peso against the US dollar.
However, the central bank noted that higher prices of vegetables and meat products may partially offset the easing trend.
Inflation in April fell to 1.4 percent from March’s 1.8 percent primarily driven by significant drops in food and transport costs, notably a 10.9 percent year-on-year decrease in rice prices and a 2.1 percent reduction in transport expenses.
Looking ahead, the BSP said the Monetary Board will maintain a measured approach to monetary policy adjustments to ensure price stability, while supporting sustainable economic growth and employment.
“The BSP remains committed to monitoring emerging risks to the inflation outlook and stands ready to deploy appropriate policy tools as necessary,” the statement read.
The May inflation data is scheduled to be released by the Philippine Statistics Authority on June 5. / KOC