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 said on Wednesday (Jun 5).
The consumer price index rose 3.9 per cent in May from 3.8 per cent the previous month, marking the fastest rise since November 2023, bringing the five-month average inflation to 3.5 per cent, well inside the central bank’s 2 to 4 per cent target for the year.
Economists in a Reuters poll had forecast annual inflation at 4 per cent, within the central bank’s 3.7 to 4.5 per cent forecast for the month.
Core inflation, which strips out volatile food and energy prices, eased to 3.1 per cent in May from 3.2 per cent the prior month.
Bangko Sentral ng Pilipinas governor Eli Remolona reiterated on Tuesday that the benchmark policy rate, currently at a 17-year high of 6.5 per cent, could be cut before the US Federal Reserve starts it easing cycle.
The Philippine central bank, which kept its benchmark rate steady at its last five meetings, has said it was looking to cut rates by 25 basis points as early as August and by another 25 basis points in the fourth quarter. REUTERS
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