Manila: Headline inflation further slowed to 1.3 percent in May, down from 1.4 percent in April, marking the lowest recorded rate since November 2019's 1.2 percent, as reported by the Philippine Statistics Authority (PSA).
According to Philippines News Agency, National Statistician Dennis Mapa stated that this brought the year-to-date average inflation to 1.9 percent, aligning with the lower end of the government's target range of 2 to 4 percent. The reduction was primarily attributed to a slower increase in the index of housing, water, electricity, gas, and other fuels, which decreased to 2.3 percent from 2.9 percent in April. Additionally, restaurant and accommodation services recorded a slower inflation rate of 2 percent, down from 2.3 percent in April. The transport index saw a faster annual decline to 2.4 percent in May from 2.1 percent the previous month, while food inflation remained steady at 0.7 percent.
Mapa highlighted the impact of the PHP20 per kilogram rice program, initiated under President Ferdinand R. Marcos Jr.'s directives, in reducing rice prices. The average price of regular milled rice decreased to PHP43.19 per kg from PHP51.11 in May 2024, while well-milled rice and special rice prices also saw declines. The bottom 30 percent income households experienced zero percent inflation in May 2025, a significant drop from the 5.3 percent recorded in the same month last year. The National Capital Region posted a slower inflation rate of 1.7 percent in May, down from 2.4 percent the previous month, while other regions maintained a low average inflation rate of 1.2 percent.
In a separate statement, the Department of Economy, Planning, and Development (DEPDev) expressed optimism about the continued decline in headline inflation, viewing it as progress toward easing price pressures and achieving a more stable cost of living. Rosemarie Edillon, DEPDev officer in charge and Undersecretary for Policy and Planning, emphasized the government's commitment to implementing policies to mitigate inflationary pressures and protect the purchasing power of Filipinos.
The Food and Drug Administration (FDA) and the Department of Agriculture (DA) are enhancing their collaboration to ensure the availability of animal vaccines amid ongoing African Swine Fever (ASF) and Avian influenza outbreaks. The Bureau of Animal Industry is assessing a controlled ASF vaccination campaign, with hopes for a commercial rollout before the year's end. The DA has also extended the deadline for fish import permits to June 2025, allowing importers more time to comply with revised guidelines.
DEPDev announced that the PHP20 per kg rice program will expand to Phases 2 and 3 in July and September, covering more areas in Visayas and Mindanao. Edillon reiterated the government's commitment to executing necessary measures to keep prices stable and expressed confidence in meeting the headline inflation target of 2 to 4 percent for the year.
