THE country’s inflation rate has further slowed down to 1.3 percent in May 2025, the lowest since November 2019.
In a report, the Philippine Statistics Authority (PSA) said the top three main contributors to the May 2025 headline inflation were housing, water, electricity, gas and other fuels with 37.1 percent share or 0.5 percentage point; food and non-alcoholic beverages with 25.7 percent share or 0.3 percentage point; and restaurants and accommodation services with 15.5 percent share or 0.2 percentage points.
The main drivers to the downward trend in the headline inflation were the slower annual increment in the indices of housing, water, electricity, gas and other fuels at 2.3 percent in May 2025 from 2.9 percent in the previous month; restaurant and accommodation services at 2.0 percent from 2.3 percent; and transport from 2.4 percent to 2.1 percent.
The furnishing, household equipment and routine household maintenance index also recorded a slower annual growth of 2.0 percent during the month from 2.1 percent in April 2025.
Higher inflation rates were observed in the indices of alcoholic beverages and tobacco, rising to 3.8 percent from 3.7 percent; information and communication, from 0.3 percent to 0.4 percent; recreation, sport, and culture, from 2.1 percent to 2.2 percent; and education services, from 4.2 percent to 4.3 percent.
Food inflation remained steady at 0.7 percent for May 2025.
The main contributors to food inflation were the indices of meat and other parts of slaughtered land animals, with a share of 216.6 percent or 1.5 percentage points; fish and other seafood, with a share of 133.6 percent or 0.9 percentage points; and milk, other dairy products, and eggs, with a share of 55.8 percent or 0.4 percentage points.
In a statement, the Department of Economy, Planning, and Development (DEPDev), formerly known as the National Economic and Development Authority (Neda), said the continued decline in the country’s headline inflation shows progress toward easing price pressures and achieving a more stable cost of living for Filipinos.
DEPDev Office-in-Charge and Undersecretary for Policy and Planning Rosemarie Edillon noted that the bottom 30 percent income households experienced zero percent inflation in May 2025, reflecting a sharp decline from 5.3 percent in the same month last year.
He said food inflation also declined significantly to 2.0 percent, down from 8.2 percent in May 2024 for the said group.
By region, the National Capital Region posted a slower inflation rate of 1.7 percent in May, down from 2.4 percent the previous month.
Other regions maintained a low average inflation rate of 1.2 percent, with nine regions, including Soccsksargen, Bangsamoro Autonomous Region in Muslim Mindanao (Barmm), and Northern Mindanao, recording lower inflation rates than the previous month.
Edillon said the Marcos Administration reaffirmed its commitment to implementing targeted policies aimed at mitigating inflationary pressures and safeguarding the purchasing power of Filipino families to sustain this downward trend.
These policies include the recently launched Benteng Bigas Meron Na program, which aims to improve access to affordable rice by offering P20 per kilo milled rice from the National Food Authority (NFA) to vulnerable groups such as (Pantawid Pamilyang Pilipino Program) 4Ps beneficiaries, senior citizens, persons with disabilities, and single parents. (TPM/SunStar Philippines)