Headline inflation in May stood at 3.9 percent, driven mainly by rising prices in energy and transportation. Although it was only a slight increase from April’s 3.8 percent, the rate ended up being closer to the upper end of the inflation target range that the national government had set for this year.

While the May 2024 headline inflation was still within the Bangko Sentral ng Pilipinas forecasted range of 3.7–4.5 percent, this number only had a point-one difference to the government’s inflation target of 4.0 percent, which was ranged at 3.0 percent, with a “give or take” one percentage point for the year.

The average year-to-date inflation rate, calculated from January to May of 2024, was 3.5 percent. also within the upper limit of the government’s target range.

The raised consumer price was also reflected in the depreciated value of the Philippine peso. On the third day of trading on June 5, the Philippine-peso-to-US-dollar exchange rate finished at a value of ₱58.78 per dollar.

This 7-centavo loss is the latest of a 19-month low streak for the national currency, and the worst showing since November 2022’s ₱58.80 per dollar.

A press release that same day by the National Economic and Development Authority (NEDA) said that the government was doubling its efforts and persisting against these inflation drivers.

“The government will continue to implement lasting policy reforms to ensure we address the drivers of food and non-food inflation sustainably. We want to maintain a macroeconomic environment conducive to investment and high-quality job creation—an environment that would allow us to hit the Marcos Administration’s development targets by 2028,” NEDA Secretary Arsenio Balisacan said.

The PSA’s May 2024 headline inflation rate was driven mostly by an increase in the consumer price index for housing, water, electricity, gas, and other fuels.

Food inflation, while decelerating when compared to April 2024’s 6.3%, was still high, capped at 6.1% for May.

Balisacan added that the NEDA Board approved the new Comprehensive Tariff Program for 2024-2028, which would lessen rates for corn, pork, and mechanically deboned meat under Executive Order No. 50, s. of 2023.

The rice duty rate was also reduced to 15%, from 35% for both in-quote and out-quota imports until 2028.