Philippine inflation rate slightly rises to 3.9 pct in May

MANILA, June 5, (Xinhua): The Philippines’ inflation rate rose up to 3.9 percent in May from 3.8 percent in April, the Philippine Statistics Authority (PSA) said on Wednesday.

The May inflation rate brings the national average in the first five months to 3.5 percent.

In a news conference, PSA chief Dennis Mapa said the uptick in overall inflation in May was primarily influenced by the higher year-onyear increase in the index of housing, water, electricity, gas, and other fuels, which increased to 0.9 percent during the month from 0.4 percent in April.

He added the faster annual growth of the transport index, at 3.5 percent in May from 2.6 percent in April, also contributed to the uptrend of the overall inflation.

The food inflation decreased but still reached 6.1 percent in May from 6.3 percent in April. Rice inflation, a significant contributor to overall inflation, decreased to 23.0 percent for the month from 23.9 percent in April.

The core inflation, which excludes selected food and energy items, slowed to 3.1 percent in May.

To help manage food inflation and enhance food security, the government has agreed to reduce the rice duty rate to 15 percent from 35 percent for both in-quota and out-quota imports until 2028.

The government also approved the extension of the reduced tariff rates on corn, pork, and mechanically deboned meat until 2028.

The Asian Development Bank forecasts inflation in the Philippines to moderate to 3.8 percent in 2024 and 3.4 percent in 2025, falling within the 2 to 4 percent target range of the central bank.

Decelerating global oil prices and an extension in reduced tariffs on major food items, including rice, corn, and pork, will help contain food inflation, according to the ADB.