MANILA: Philippine annual inflation quickened for a fourth straight month in May due largely to the faster pace of increases in housing, utility and transport costs, the statistics agency says.
The consumer price index rose 3.9% in May from 3.8% the previous month, marking the fastest rise since November 2023, bringing the five-month average inflation to 3.5%, well inside the central bank’s 2% to 4% target for the year.
Economists in a Reuters poll had forecast annual inflation at 4%.
The Bangko Sentral ng Pilipinas or BSP said last month’s data was consistent with its expectations that inflation could accelerate over the near term due to the impact of adverse weather conditions on farm output.
Core inflation, which strips out volatile food and energy prices, eased to 3.1% in May from 3.2% the prior month.
Central bank governor Eli Remolona reiterated on Tuesday that the benchmark policy rate, which currently stands at a 17-year high of 6.50%, could be cut before the US Federal Reserve begins with its own easing cycle.
The central bank’s next meeting is on June 27. — Reuters