Philippine inflation eases to 6.8% in May amid pump price rollbacks

By Katherine K. Chan, Reporter

HEADLINE inflation came in slower than expected in May as pressures from transport costs eased following several pump price rollbacks during the month, the Philippine Statistics Authority (PSA) reported.

Inflation settled at 6.8% in May, easing from 7.2% in April but quickened from 1.3% in the same month last year, according to PSA data.

This marked the first time in half a year or since November 2025 that the headline print cooled month on month, and was the slowest pace in two months or since the 4.1% in March.

The May reading also came in as a surprise for economic managers and the market, as a BusinessWorld poll of 16 economists conducted last week yielded a median estimate of 7.9% for the month.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) earlier said last month’s headline clip was likely between 7.1% and 7.9%.

Still, May marks the third month in a row that the headline inflation has topped the central bank’s 2%-4% target, bringing the year-to-date average inflation to 4.5%.

However, core inflation, which excludes volatile food and energy prices, bucked the headline print’s trajectory as it quickened to 4.1% in May from 3.9% a month ago and 2.2% in May 2025.

This was the fastest pace seen since the 4.4% recorded in December 2023.