Persistent low inflation rate recorded at 1.3% in the Philippines
The Almighty Drop in the Philippines' Inflation Rate 🇵🇭
Here's the lowdown on the nation's inflation rate dippin' down to 1.3% in May '25, a figure not seen since Nov '19. The Philippine Statistics Authority (PSA) spilled the beans in a report, revealin' the main factors screwin' with the numbers.
Housing, water, electricity, gas, and other fuels took the top spot, accountin' for 37.1% and a teeny 0.5% point of the overall inflation. Food and non-alcoholic beverages tag-teamed in second place with a 25.7% share and an added 0.3%. Restaurants and accommodation services rounded out the top three with a 15.5% share and a 0.2%.
The lower end of the inflation seesaw was brought about by slower increases in multiple sectors. Housing and water prices chilled out, inchin' down from 2.9% to 2.3%. The restaurant and accommodation services also cooled their jets, dippin' from 2.3% to 2.0%. The transportation sector joined the party, garnering a downward move from 2.4% to 2.1%.
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Furnishin', household equipment, and routine household maintenance ain't left out of the action, either. The index for these items clocked a slower annual growth of 2.0% in May, down from 2.1% in April of the same year.
Alcoholic beverages and tobacco, information and communication, recreation, sport, and culture, and education services all saw increasin' inflation rates. But worry not, food inflation stayed steady at 0.7%.
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The meat and other parts of slaughtered land animals, fish and other seafood, and milk, other dairy products, and eggs were the primary contributors to food inflation.
The Department of Economy, Planning, and Development (DEPDev) spoke up about the downward trend in inflation, lauding it as progress and a step towards easin' price pressures. The bottom 30% income households received a well-deserved break with zero percent inflation in May, an improvement from 5.3% in the same month last year. Food inflation for this group also slid significantly to 2.0%.
Inflation in the National Capital Region slowed down to a sedate 1.7%, dippin' from 2.4% the previous month. Roughly nine regions, includin' Soccsksargen, Bangsamoro Autonomous Region in Muslim Mindanao (Barmm), and Northern Mindanao, witnessed lower inflation rates compared to the previous month.
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DEPDev reiterated the Marcos Administration's dedication to puttin' policies in motion to fight inflation and maintain the purchasing power of Filipino families. New initiatives like the Benteng Bigas Meron Na program, which offers subsidies on rice to vulnerable groups, are part of these efforts.
So there ya have it, folks! Keep your eyes peeled for more news and updates on the nation's ever-changin' economic landscape! 🤙🇵🇭
[1]Edillon, Rosemarie (2025). Personal communication. 🔗ENRICHMENT: Impact on Different Income Groups[3]PSA (2025). Report on the Inflation Rate for May 2025. 🔗ENRICHMENT: Drivers of Inflation in Previous Months
The decrease in inflation rate in the Philippines may positively impact the various sectors of the society, particularly the education and culture, as a lower inflation rate usually means more financial stability for families. With a better financial situation, people might be able to afford educational expenses and cultural activities more easily.
In addition, the Philippines Department of Economy, Planning, and Development's (DEPDev) implementation of new policies such as the Benteng Bigas Meron Na program, providing subsidies on rice to vulnerable groups, can help alleviate economic challenges faced by the lower-income households and possibly improve their access to quality education and cultural events.
