Manila: The Bangko Sentral ng Pilipinas (BSP) is forecasting that inflation for May 2025 will be within the range of 0.9 percent to 1.7 percent. If the prediction's lower end is met, it will represent the lowest inflation rate since October 2019, when it was recorded at 0.6 percent.

According to Philippines News Agency, the BSP attributed the potential decrease in inflation to several factors, including easing prices of rice and fish. These declines are driven by favorable domestic supply conditions. Additionally, lower oil prices, reduced electricity rates, and the appreciation of the peso are contributing to the downward pressure on prices for the month.

Despite these positive influences, the central bank noted that there could be partial offsets due to higher prices of vegetables and meat items. The BSP emphasized the importance of continuing a measured approach in adjusting monetary policy to maintain price stability, which is crucial for balanced and sustainable economic growth and employment.

In April of this year, inflation dropped to 1.4 percent, marking the lowest rate since November 2019. The official inflation data for May 2025 is scheduled to be released by the Philippine Statistics Authority on June 5.