The Department of Economy, Planning, and Development (DEPDev) said targeted government interventions helped ease price pressures in May, as inflation slowed despite elevated global oil prices and persistent increases in key food staples.
The Philippine Statistics Authority reported that headline inflation eased to 6.8 percent in May from 7.2 percent in April, bringing the average inflation rate from January to May to 4.5 percent.
DEPDev Secretary Arsenio Balisacan said the slowdown showed the impact of timely and coordinated government measures, particularly in cushioning households from external shocks.
“While global oil prices remain elevated, transport inflation has begun to slow down. The government’s timely and targeted interventions help mitigate the impact of external shocks on Filipino households,” Balisacan said.
He said measures to stabilize transport costs, including fuel assistance for public utility vehicle operators and drivers and efforts to ensure adequate fuel supply, helped ease the impact of higher fuel prices on commuters, transport workers, and businesses.
Food inflation also slowed to 5.8 percent in May from 6.1 percent in April, driven by slower price increases in vegetables, fish, and meat amid oversupply in key producing areas.
Vegetable inflation eased to 6.2 percent from 10.4 percent, while fish inflation slowed to 8.8 percent from 9.4 percent. Meat inflation remained in negative territory at -2.5 percent from -1.9 percent.
However, DEPDev said price pressures persisted in several staples. Rice inflation rose to 15.6 percent from 13.7 percent, while corn inflation climbed to 25.5 percent from 21 percent. Inflation for flour, bread, cereals, bakery products, and pasta also increased to 3.5 percent from 3 percent.
Balisacan said the government will continue pursuing targeted measures to stabilize prices, protect household purchasing power, and strengthen food security.
These include expanding support for vulnerable sectors, ensuring adequate fuel supply, exploring alternative fuel sources, accelerating the shift to renewable energy, and strengthening farmers’ preparedness through cloud-seeding operations, solar-powered irrigation systems, and crop diversification programs.
“While the easing of inflation in May is encouraging, we recognize that price pressures remain elevated,” Balisacan said. “Well-targeted government interventions are critical to cushioning the impact of domestic shocks such as weather disturbances and external headwinds such as ongoing geopolitical tensions, while preserving business continuity.”
He said the UPLIFT Committee will continue monitoring inflation and pursuing measures to boost domestic food production, improve logistics and market efficiency, and ensure timely support for vulnerable sectors.