Inflation slows to 6.8% in May

MANILA, Philippines – The country’s inflation eased to 6.8 percent in May from 7.2 percent in April as transport and food prices softened amid the Middle East conflict-driven energy crisis, the Philippine Statistics Authority (PSA) reported on Friday.

The latest reading fell below the Bangko Sentral ng Pilipinas’ 7.1 to 7.9 percent forecast for the month and was also lower than the 7.7 percent median estimate of 12 economists polled by the Inquirer.

READ: BSP sees May inflation at 7.1%-7.9% on food, peso pressures

Despite the slowdown, inflation remained well above the government’s 2 to 4 percent target range and stayed near its highest levels in more than three years.

This brought average inflation in the first five months of the year to 4.5 percent.

Transport costs eased to 16.2 percent in May from 21.4 percent in April following a series of domestic fuel price rollbacks.

Food inflation likewise cooled to 5.7 percent from 6 percent, while prices for housing and utilities decelerated to 7.8 percent from 8.2 percent after the government suspended excise taxes on kerosene and cooking gas. /pai INQ