By Brian Campued
The government will continue implementing targeted interventions to help mitigate the impact of global headwinds and weather-related disruptions in the country, the Department of Economic, Planning and Development (DEPDev) said.
This, as the headline inflation eased to 6.8% in May from the 7.2% recorded in April, when the Philippines experienced the brunt of higher fuel prices on the costs of food, electricity, and transportation driven by the geopolitical tensions in the Middle East.
According to the Philippine Statistics Authority (PSA), the average inflation rate from January to May 2026 is now at 4.5%.
The PSA said the main drivers for the downtrend of the headline inflation were the slower annual increase in transport; food and non-alcoholic beverages; and housing, water, electricity, gas and other fuels.
In particular, the factors that contributed to the cooling down of inflation in May were the slower increase in the prices of diesel, gasoline, onions, milkfish (bangus), liquefied petroleum gas (LPG), kerosene, and house rentals, as well as the faster decrease in the prices of pork.
“While the level of inflation for these commodity groups ay mataas pa rin, kung ikukumpara natin sa Abril, bumaba siya, kaya that’s at least good news for the month of May,” National Statistician and Civil Registrar General Usec. Claire Dennis Mapa said in a press briefing Friday.
Mapa added that prices may remain elevated in June due to external factors that create volatility in the prices of fuel, transport, energy, and rice, which has the biggest weight in the food basket, particularly for the Bottom 30% Income Households.
“Dito sa month of May, tumaas yung presyo ng bigas, alam naman nating malaki yung weight ng rice doon sa basket natin, particularly doon sa Bottom 30% Income Households kaya kanina ni-report natin na while the overall inflation is 6.8%, 8.4% naman doon sa Bottom 30% Income Households,” he said.
The PSA chief assured that they are monitoring the prices of commodities in the country amid the Middle East crisis and with the entry of the rainy season as well as the looming El Niño.
Meanwhile, DEPDev Secretary Arsenio Balisacan said the government, through the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee, continues to implement “responsive and coordinated policies” to further stabilize prices and protect the purchasing power of Filipino households.
These measures include expanding targeted financial support, procuring fuel to ensure an adequate supply, exploring alternative fuel sources, and accelerating the country’s transition to renewable energy.
To boost farmers’ preparedness for the looming El Niño, the government is also looking to implement cloud seeding operations, deploy solar-powered irrigation systems, and roll out crop diversification programs.
“While the easing of inflation in May is encouraging, we recognize that price pressures remain elevated. Thus, well-targeted government interventions are critical to cushioning the impact of domestic shocks such as weather disturbances and external headwinds such as ongoing geopolitical tensions, while preserving business continuity,” Balisacan said in a press release.
“The government, through the UPLIFT Committee, will continue to monitor inflation and pursue measures to strengthen domestic food production, improve logistics and market efficiency, and ensure that vulnerable sectors receive timely support,” the country’s chief economist added.
-jpv
