MANILA: Philippine inflation unexpectedly decelerated in May as easing transport costs took pressure off soaring prices triggered by the Iran war.
Consumer prices in May rose 6.8% from a year earlier, the Philippine Statistics Authority said Friday (June 5). That’s slower than the 7.2% in April, markedly below the median estimate of 7.8% in a Bloomberg News survey, and less than the central bank’s own forecast.
Still, core inflation accelerated to 4.1%, the fastest in more than two years, and the headline figure is still more than double the central bank’s target.
The data is unlikely to deter the Bangko Sentral ng Pilipinas from further raising interest rates, although it might lessen the pressure for an off-cycle move. Governor Eli Remolona has said policymakers would monitor the latest inflation data as they decide whether it needs to raise its benchmark policy rate ahead of its June 18 meeting.
The central bank is expected to comment on the new inflation data later Friday. - Bloomberg
