BUSINESS
Advocates Philippines
PH Marks Lower Inflation In May
In May 2023, the headline inflation in the Philippines continued its deceleration trend, dropping further to 6.1 percent from 6.6 percent in April 2023. This marks the fourth consecutive month of slowing inflation in the country. However, despite the decline, the inflation rate in May 2022 was still lower at 5.4 percent. The year-to-date average inflation rate from January to May 2023 stood at 7.5 percent.
The main drivers behind the downward trend in headline inflation were the annual decline in the transport index and lower inflation rates in the heavily-weighted food and non-alcoholic beverages.
The index of transport experienced a negative growth of -0.5 percent compared to a 2.6 percent increase in the previous month. Food and non-alcoholic beverages also contributed to the deceleration, with a lower inflation rate of 7.4 percent in May 2023 compared to 7.9 percent in April 2023. Restaurants and accommodation services registered slower inflation at 8.3 percent from 8.6 percent in the previous month.
The inflation rate for alcoholic beverages and tobacco also slowed down to 12.3 percent during the month.
On the other hand, higher inflation rates were observed in the indices of furnishings, household equipment, and routine household maintenance, as well as recreation, sport, and culture.
The top three commodity groups that contributed to the 6.1 percent headline inflation in May 2023 were food and non-alcoholic beverages, housing, water, electricity, gas and other fuels, and restaurants and accommodation services.
Food inflation at the national level also exhibited a downward movement, reaching 7.5 percent in May 2023, compared to 8.0 percent in the previous month. The main drivers of the slower food inflation were lower growth rates in fish and other seafood, meat, and milk, other dairy products, and eggs.
Core inflation, which excludes selected food and energy items, slowed down to 7.7 percent in May 2023 from 7.9 percent in April 2023. The average core inflation from January to May 2023 was 7.8 percent, while in May 2022, it was observed at 2.8 percent.
Inflation rate in the National Capital Region (NCR) followed a similar trend, slowing down to 6.5 percent in May 2023 from 7.1 percent in April 2023. Inflation rate in NCR in May 2022 was lower at 4.7 percent. The slowdown in NCR inflation was mainly attributed to lower growth rates in the transport index, restaurants and accommodation services, and food and non-alcoholic beverages.
Inflation rate in areas outside NCR (AONCR) also decelerated further to 6.0 percent in May 2023 from 6.5 percent in April 2023. In May 2022, inflation in AONCR stood at 5.5 percent. The deceleration in AONCR inflation was primarily caused by the annual decrease in the transport index, slower growth rates in food and non-alcoholic beverages, and housing, water, electricity, gas and other fuels.
The main drivers behind the downward trend in headline inflation were the annual decline in the transport index and lower inflation rates in the heavily-weighted food and non-alcoholic beverages.
The index of transport experienced a negative growth of -0.5 percent compared to a 2.6 percent increase in the previous month. Food and non-alcoholic beverages also contributed to the deceleration, with a lower inflation rate of 7.4 percent in May 2023 compared to 7.9 percent in April 2023. Restaurants and accommodation services registered slower inflation at 8.3 percent from 8.6 percent in the previous month.
The inflation rate for alcoholic beverages and tobacco also slowed down to 12.3 percent during the month.
On the other hand, higher inflation rates were observed in the indices of furnishings, household equipment, and routine household maintenance, as well as recreation, sport, and culture.
The top three commodity groups that contributed to the 6.1 percent headline inflation in May 2023 were food and non-alcoholic beverages, housing, water, electricity, gas and other fuels, and restaurants and accommodation services.
Food inflation at the national level also exhibited a downward movement, reaching 7.5 percent in May 2023, compared to 8.0 percent in the previous month. The main drivers of the slower food inflation were lower growth rates in fish and other seafood, meat, and milk, other dairy products, and eggs.
Core inflation, which excludes selected food and energy items, slowed down to 7.7 percent in May 2023 from 7.9 percent in April 2023. The average core inflation from January to May 2023 was 7.8 percent, while in May 2022, it was observed at 2.8 percent.
Inflation rate in the National Capital Region (NCR) followed a similar trend, slowing down to 6.5 percent in May 2023 from 7.1 percent in April 2023. Inflation rate in NCR in May 2022 was lower at 4.7 percent. The slowdown in NCR inflation was mainly attributed to lower growth rates in the transport index, restaurants and accommodation services, and food and non-alcoholic beverages.
Inflation rate in areas outside NCR (AONCR) also decelerated further to 6.0 percent in May 2023 from 6.5 percent in April 2023. In May 2022, inflation in AONCR stood at 5.5 percent. The deceleration in AONCR inflation was primarily caused by the annual decrease in the transport index, slower growth rates in food and non-alcoholic beverages, and housing, water, electricity, gas and other fuels.
Jun 6, 2023
