Philippine Inflation Rises to 3.9% in May, Highest in 5 Months

In Manila, headline inflation in the Philippines increased to 3.9 percent in May 2024, up from 3.8 percent in April, the highest rate in five months. The Philippine Statistics Authority (PSA) revealed this rise on Wednesday, citing higher housing, utility, gas, and transportation prices.

According to the most recent data, the consumer price index increased by 3.9% year over year in May, slightly higher than the previous month. However, this rate is much lower than the inflation rate of 6.1 percent in May 2023. The May inflation rate falls within the Bangko Sentral ng Pilipinas' (BSP) predicted range of 3.7-4.5 percent, and it continues within the BSP's goal range of 2-4 percent for the sixth month.

The PSA highlighted that the national average inflation rate for the first five months of 2024 is currently 3.5%. Food inflation fell slightly in May, to 6.1 percent from 6.3 percent in April. In May 2023, however, food inflation was 7.5% higher.

This inflation data highlights the continued effect of growing expenses in critical industries on the broader economy. Despite these challenges, the BSP's target range has been consistently adhered to, indicating some stability.