The country’s inflation dropped below 2% in May, the lowest rate since November 2019, the Philippine Statistics Authority (PSA) said Thursday.
According to the PSA, the inflation rate slowed to 1.3% in May from 1.4% in April. This figure is within the Bangko Sentral ng Pilipinas (BSP) forecast range of 0.9 to 1.7% for the month, bringing the year-to-date average inflation to 1.9%.
‘‘We are encouraged by this development. It reflects the success of our sustained efforts to protect the purchasing power of Filipinos and ensure a more affordable cost of living,’’ said Undersecretary for Policy and Planning Rosemarie G. Edillon of the National Economic and Development Authority.
Among the most significant indicators was the effective zero inflation rate experienced by the bottom 30% of income households in May 2025 a sharp decline from 5.3% in the same month last year. For these households, food inflation also dropped to 2% from 8.2% in May 2024.
At the national level, food inflation held steady at 0.7% in May, unchanged from April and well below the 6.1% recorded in the same period last year. In Metro Manila, inflation eased to 1.7% from 2.4% in April. Across the rest of the country, regional inflation averaged 1.2%, with nine regions including Northern Mindanao, SOCCSKSARGEN, and BARMM—recording slower rates compared to the previous month.
To maintain this downward trend, the Marcos administration reaffirmed its commitment to targeted measures aimed at reducing inflationary pressures and strengthening household purchasing power.
House leaders welcomed the data, describing the continued decline as immediate relief for Filipino families. Speaker Ferdinand Martin G. Romualdez called it good news that directly benefits households.
‘‘When prices don’t rise, families can breathe easier there’s money for rice, transportation, electricity, and medicine. These are real gains from the government’s programs,’’ Romualdez said.
The PSA attributed the slowdown to reduced increases in housing, electricity, gas, and water costs, which rose only 2.3%. Food prices remained stable, transport costs declined further, and core inflation—excluding food and energy held at 2.2%.
Romualdez emphasized that inflation control under President Ferdinand R. Marcos Jr. is producing tangible outcomes. ‘‘President Marcos has made inflation a top priority. Now we’re seeing the results less volatility, more certainty, and benefits reaching Filipino households,’’ he said.
Albay Rep. Joey Salceda, chair of the House committee on ways and means, said the drop in inflation gives the government room to act quickly and effectively.
‘‘This is the kind of environment where smart public spending can do the most good,’’ he said, urging that the 2026 national budget be focused, agile, and results-oriented.
Salceda outlined five priorities for the 2026 budget: full funding for the newly passed Livestock, Poultry, and Dairy Development Act; targeted aid for small businesses; infrastructure spending, including completion of the San Juanico Bridge; efficient fund disbursement to capable agencies; and investment in national defense.
Meanwhile, government agencies are continuing efforts to ensure price stability through agriculture and supply chain interventions. The Food and Drug Administration and Department of Agriculture (DA) are working together to ensure the availability of safe, effective animal vaccines amid ongoing African
Swine Fever (ASF) and Avian Influenza outbreaks. A commercial ASF vaccine rollout is expected before year-end.
The DA also extended the deadline for fish import permits to June 2025, allowing importers to meet updated guidelines and encouraging full utilization of approved volumes. Additionally, the DA launched the Benteng Bigas Meron Na program on May 15, offering 20/kg milled rice from the National Food Authority to vulnerable sectors such as 4Ps beneficiaries, senior citizens, persons with disabilities, and single parents. The program is currently operating in select KADIWA Centers, with nationwide expansion set for July and September.
Edillon expressed confidence that the government would meet its full-year inflation target of 2% to 4%, saying, ‘‘We remain committed to executing the necessary measures to keep prices low and stable.’’
Romualdez, for his part, reiterated Congress commitment to sustaining low inflation. ‘‘We’re working on laws to reduce rice prices, support farmers, and make basic goods more affordable. The goal is lasting relief,’’ he said.
He pointed to pending measures such as amendments to the Rice Tariffication
Law and the restoration of regulatory functions to the National Food Authority.
“Economic progress must be felt in everyday life. In Congress, we will ensure that no Filipino is left behind in our recovery,†he added.
