The country’s headline inflation rate increased in May for the fourth consecutive month at 3.9 percent, near the upper end of the government’s target range.
Data from the Philippine Statistics Authority showed on Wednesday, June 5, that the latest inflation print is marginally higher than the 3.8 percent reported in April but is lower than the 6.1 percent recorded in May 2023.
The latest figure also fell within the Bangko Sentral ng Pilipinas (BSP) expected range of 3.7–4.5 percent for the month and within the government’s target range of 2 to 4 percent.
Core inflation, which excludes volatile goods like food and gasoline, decreased to 3.1 percent in May from 3.2 percent in April.
Year-to-date, average inflation for the first five months of the year is at 3.5 percent.
In a press briefing, PSA chief and National Statistician Claire Dennis Mapa attributed the increase in headline inflation to housing, water, electricity, gas, and other fuels from 0.4 percent in April to 0.9 percent in May.
Mapa said the average cost of power in May was P1444.60 for 120 kWh of electricity consumed, which was more expensive than the P1,384.35 average in April.
Additionally, Mapa said the average cost of an 11 kg tank of cooking gas or liquefied petroleum gas (LPG) increased from P1,113.18 in April to P1,404.60 in May.
Mapa also mentioned that the higher power bills may have resulted from the Luzon and Visayas grids being placed on red and yellow warnings.
“That’s possible, because of course if you have higher demand, compared to supply, that would trigger some adjustments in the prices upward,” he said.
Mapa also said that transportation inflation also increased from 2.6 percent in April to 3.5 percent in May.
He attributed the transportation inflation to a faster increase in prices of diesel at 7.2 percent in May from 4.2 percent in April, and prices of gasoline at 5.2 percent from 3.4 percent.
Rice prices saw a slight deceleration from 23.9 percent in April to 23 percent in May.
Mapa saw a drop in the average global price of rice despite the ongoing inflationary trend in the grain, especially in Thailand and Vietnam, which has an effect on retail pricing in the Philippines.
“Continuously, bumababa ang average world price of rice halimbawa sa Thailand and Vietnam,” Mapa said.
“In terms of world prices, it is going down so that’s why we’re seeing a also a slight decreases in the retail price of rice in the country,” Mapa added.
With the tariff reduction supported by the National Economic Development Authority (NEDA) the day prior, Mapa anticipates potential pricing modifications.
“Iyong tariff reduction natin, kasi malaki. Yung aming estimate, very quick estimate, on the impact ng price per kilo, all things being the same, from the reduction of the tariff is about P6-7. All things being the same yun ah, very quickcomputation,” Mapa said.
“And that would have impact, a large impact on the inflation for rice and the overall inflation,” Mapa added. (TCSP)
