Inflation, or the pace of increase in the prices of goods and services, eased further to 6.1% in May, government data showed Tuesday.
According to the Philippine Statistics Authority, this is the lowest inflation rate since July 2022 and the fourth straight month of decline.
Inflation has averaged 7.5% so far this year, slightly above the government’s target ceiling of 7% for 2023.
The government attributed the steady decline to slower food and transportation inflation.
“We are confident that we can achieve the government’s inflation target this year as we work closely with concerned government agencies to monitor the primary drivers of inflation,” National Economic and Development Authority Secretary Arsenio Balisacan said in a statement.
“As the risks to the inflation outlook lean towards the upside due to potential increases in transport fares, wage adjustments, higher electricity rates, and domestic prices of key food items resulting from the impact of El Niño, the government is working to implement the necessary interventions as we aim to keep prices low and stable for Filipino consumers,” he added.
To mitigate the impact of El Niño on food security, Balisacan recommended ensuring an adequate supply of agricultural inputs, prepositioning pumps, promoting early planting in areas likely to experience water deficits in the coming months, and maximizing production in non-threatened areas.