Philippine Inflation Rate Declines to 6.8% in May Amid Slower Food and Transport Costs
Philippine annual inflation slows to 6.8% in May
Image: Channel Newsasia
In May, the Philippines recorded an annual inflation rate of 6.8%, a decrease from 7.2% in April. This decline was primarily due to slower increases in food and transport prices, falling below both market expectations and the central bank's projections. The average inflation rate for the first five months of 2023 was 4.5%.
- 01The annual inflation rate in the Philippines decreased to 6.8% in May from 7.2% in April.
- 02This rate was lower than the 7.5% forecast by economists in a Reuters poll.
- 03Core inflation, which excludes food and energy, rose to 4.1% in May from 3.9% in April.
- 04The average inflation rate from January to May was 4.5%, exceeding the central bank's target range of 2.0% to 4.0%.
- 05The Philippine central bank raised interest rates by 25 basis points in April to manage inflation.
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The Philippine Statistics Authority reported that the annual inflation rate for May 2023 was 6.8%, a decrease from 7.2% in April. This decline was attributed to slower price increases in food and transportation sectors, which helped the inflation rate fall below the 7.5% median forecast from a Reuters poll and the central bank's projection of 7.1% to 7.9%. Despite this decrease, the average inflation rate for the first five months of the year stood at 4.5%, which is above the Bangko Sentral ng Pilipinas (BSP) target range of 2.0% to 4.0%. Additionally, core inflation, which excludes the more volatile food and energy prices, increased to 4.1% in May from 3.9% in April. In response to rising inflation, the BSP had raised interest rates by 25 basis points in April, and the next policy meeting is scheduled for June 18.
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The reduction in the inflation rate may ease the financial burden on consumers, particularly in food and transport sectors.
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