The Philippines’ annual inflation rate eased to 6.8% in May from 7.2% in April, helped by slower increases in food and transport costs, according to data released by the country’s statistics agency on Friday.
The reading came in below the 7.5% median forecast in a Reuters poll and was also lower than the Philippine central bank’s projected range of 7.1% to 7.9%.
Despite the moderation, inflation remained elevated, with average inflation for the first five months of 2026 standing at 4.5%, above the central bank’s target range of 2% to 4%.
Core inflation, which strips out volatile food and energy prices, accelerated to 4.1% in May from 3.9% a month earlier, indicating underlying price pressures remain present in the economy.
The latest figures come after the Bangko Sentral ng Pilipinas raised its benchmark interest rate by 25 basis points in April in an effort to contain inflationary pressures.
Market attention is now turning to the central bank’s next policy meeting on June 18, where policymakers will assess whether further monetary tightening is needed despite the softer headline inflation reading.
The lower-than-expected inflation print may provide some relief for consumers and businesses, although price growth remains above the central bank’s comfort zone.
Reuters
