Philippines: Slower food, transport inflation balances upticks in other groups

In May, the Philippines experienced a slight decrease in inflation rates, with food and non-alcoholic beverages inflation slowing down to 4.6% from 4.8%, alcoholic beverages and tobacco decelerating to 11.8% from 12%, and transport inflation reducing to 16.5% from 17.9%. This decrease was largely due to changes in tricycle fares and the deceleration in the inflation of petroleum and fuels. However, inflation was balanced out by increases in the pricing of clothing and footwear, housing, water, electricity, gas, and other fuels, furnishing, household equipment and routine maintenance of houses, health, and restaurant and miscellaneous goods and services. The headline inflation rate for the country remained at 4.5%, with the bottom 30% income households experiencing a slower inflation rate of 4.5% compared to 4.9% in the previous month. Monetary officials anticipate a further decrease in inflation starting in the fourth quarter of the year, due to the expected stabilization of pork supply and a temporary cut in pork tariff.