Philippines sees 4th month of slowing inflation, May 2023 rate at 6.1%

08 Jun '23

2 min read

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Insights

In May 2023, Philippines' headline inflation slowed to 6.1 per cent, marking the fourth consecutive month of deceleration, as per the PSA.
Despite this, it remained higher than the rate of 5.4 per cent a year ago.
The average inflation rate for January-May 2023 stood at 7.5 per cent.
Core inflation decreased to 7.7 per cent in May from 7.9 per cent in April.

In May 2023, the Philippines recorded a further slowdown in headline inflation to 6.1 per cent, down from 6.6 per cent in April 2023, according to a recent report by the Philippine Statistics Authority (PSA). This marks the fourth consecutive month that the country has witnessed a deceleration in headline inflation.

Despite the decline, the inflation rate from a year ago in May 2022 was lower, clocking in at 5.4 per cent. The year-to-date average inflation rate, which is calculated from January to May 2023, currently stands at 7.5 per cent.

In addition, the indices of clothing and footwear maintained their previous month’s annual growth rate at 5.1 per cent, as per the PSA.

Core inflation, which strips out selected food and energy items from the headline inflation, also decreased, down to 7.7 per cent in May 2023 from 7.9 per cent in April 2023. The five-month average core inflation rate from January to May 2023 is recorded at 7.8 per cent. In comparison, core inflation was considerably lower at 2.8 per cent in May 2022.

The National Capital Region (NCR) mirrored this national trend with its inflation rate further slowing to 6.5 per cent in May 2023 from 7.1 per cent in April 2023. The inflation rate in May 2022 was lower at 4.7 per cent. Specific sectors such as clothing and footwear saw a decrease in inflation, from 3.1 per cent to 2.9 per cent.

In the areas outside the National Capital Region (AONCR), the inflation rate also decelerated, falling to 6 per cent in May 2023 from 6.5 per cent in April 2023. A year ago, in May 2022, the inflation rate in these regions was marginally lower at 5.5 per cent. An exception to the general trend was noted in the clothing and footwear sector, which saw an increase in inflation from 5.5 per cent to 5.6 per cent.

Fibre2Fashion News Desk (DP)

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