The Philippine Statistics Authority (PSA) has reported that the country’s headline inflation rate decreased to 1.3 percent in May 2025, down from 1.4 percent in April.

This marks the lowest inflation rate seen since November 2019, when the rate was recorded at 1.2 percent.

The average inflation rate for the period from January to May 2025 now stands at 1.9 percent.

The May inflation reading aligns with predictions made by the Bangko Sentral ng Pilipinas (BSP), which had estimated a range of 0.9 to 1.7 percent for the month.

The BSP's latest data points to a “manageable inflation environment” amidst continued easing in commodity price pressures.

The central bank is set to review its monetary policy stance during the upcoming Monetary Board meeting scheduled for June 19.

The Department of Economy, Planning and Development (DEPDev) expressed satisfaction with the latest inflation figures, viewing them as a reflection of the government's ongoing efforts to stabilize the cost of living for Filipinos.

Undersecretary for Policy and Planning, Rosemarie Edillon, noted that the development illustrates progress in protecting the purchasing power of lower-income households.

Key contributors to the reduction in inflation included a slower annual increase in housing, water, electricity, gas, and other fuels, which rose by 2.3 percent in May, down from 2.9 percent in April.

Restaurant and accommodation services also saw a decrease in their growth rate, with an annual increase of two percent compared to 2.3 percent the previous month.

Conversely, the transport index reported a more significant decline, dropping by 2.4 percent compared to a 2.1 percent decrease in April.

The growth rate for the furnishing, household equipment, and routine household maintenance index also moderated.

Inflation for food at the national level remained stable at 0.7 percent in May 2025, significantly lower than the 6.1 percent recorded in May 2024. This stability has notably benefited low-income households.

The lowest income bracket, comprising the bottom 30 percent of earners, experienced zero percent inflation in May 2025, a marked decrease from 5.3 percent in the same month last year.

Additionally, food inflation for this group dropped to 2.0 percent, a decrease from 8.2 percent a year prior.

Regionally, the National Capital Region reported a slower inflation rate of 1.7 percent in May, while nine regions, including Soccskargen, Bangsamoro Autonomous Region in Muslim Mindanao, and Northern Mindanao, displayed lower inflation rates than in the previous month, contributing to an overall low average regional inflation rate of 1.2 percent.

In response to the favorable inflation trends, the Marcos Administration has committed to implementing targeted policies aimed at sustaining this progress.

The Food and Drug Administration and the Department of Agriculture are increasing their cooperation to ensure the availability of effective animal vaccines in light of ongoing challenges related to African Swine Fever (ASF) and Avian Influenza.

Both agencies are optimistic about launching a commercial version of the ASF vaccine by the end of the year.

Additionally, the Department of Agriculture has extended the deadline for fish import permits until the end of June 2025 to assist with compliance concerning updated guidelines, thereby aiming to secure adequate supplies.

The government also introduced the "Benteng Bigas Meron Na" program on May 15, 2025, which offers milled rice at a subsidized price of P20/kg through National Food Authority channels.

Initially available in Kadiwa Centers located in Metro Manila, Cebu, Bulacan, Cavite, Laguna, Mindoro, and Rizal, the program is expected to expand to the Visayas and Mindanao regions in July and September, respectively.

Edillon asserted the government's dedication to maintaining price stability and expressed optimism regarding meeting the inflation target of two to four percent for the year.