Philippines: Inflation drops to lowest level since June 2022 in May
Inflation came in at 6.1% in May, which was down from April’s 6.6%. May’s figure marked the lowest inflation rate since June 2022. Looking at the details of the release, prices for food and non-alcoholic beverages grew at a more moderate pace in May. In addition, housing and utilities prices rose at a softer pace. However, prices for clothing and footwear were broadly steady from the previous month’s reading.
The trend pointed up slightly, with annual average inflation coming in at 7.3% in May (April: 7.2%).
Lastly, consumer prices rose a seasonally adjusted 0.25% from the previous month in May, swinging from April’s 0.03% drop.
Analysts at the EIU commented on the outlook:
“We anticipate a moderation in consumer price inflation over the remainder of 2023, after it peaked at 8.7% in January. The main driver of this trend will be a lowering of global oil and commodity prices. […] Sticky core inflation will be the main factor continuing to feed into headline inflation. This will be evident in increasing prices for clothing and footwear, restaurants and accommodation and personal care services. The most notable risk to this forecast arises from extreme weather events affecting agriculture production and, subsequently, food prices.”