Inflation slows to 1.4% in April, lowest since November 2019 - PSA

MANILA, Philippines, May 8 ------ Inflation further slowed to 1.4% in April, driven primarily by softer increases in food and transport costs, the Philippine Statistics Authority (PSA) reported. The April figure marks a slight decline from March’s 1.8%, and is the lowest since November 2019, when inflation stood at 1.2%. This brought the year-to-date average inflation rate from January to April 2025 to 2%. 

The PSA attributed the continued downtrend to slower price increases in food, non-alcoholic beverages and transportation. Food and non-alcoholic beverages posted a year-on-year inflation rate of just 0.9%, caused by cheaper cereal products such as rice and corn. From 2.3% in March, rice inflation slowed to 0.7% in April. 

Other food groups that saw slower inflation included meat, fruits and nuts, and ready-made food. However, prices of dairy products and oils and fats rose slightly. Transport inflation declined by 2.1% year-on-year, largely due to falling costs in operating transport equipment. Other commodity groups that contributed to the slower inflation rate include clothing and footwear, information and communication-related products, recreation and culture, and miscellaneous goods. However, some groups posted faster inflation in April. Housing and utilities rose to 2.9% from 1.7% in March, while health climbed slightly to 2.4% from 2.2%. Alcoholic beverages and tobacco also saw a minimal uptick. Housing and utilities were the biggest contributors to the 1.4% inflation, accounting for over a third of the inflation basket. Food and non-alcoholic beverages (24.6%) and restaurants and accommodation services (15.2%) followed. 

Inflation in Metro Manila rose to 2.4% in April, up from 2.1% in March, snapping a three-month downtrend. Still, this was lower than the 2.8% recorded in April 2024. The uptick in the National Capital Region was mainly due to higher prices in housing, water, electricity, gas, and other fuels, which surged to 5.1% in April from 2.2% in March. This was partially tempered by slower inflation in food and non-alcoholic beverages, which eased to 2.5% from 3.6%. 

Areas outside Metro Manila posted a slower inflation rate of 1.2% in April, down from 1.8% in March. According to the PSA, the deceleration was largely due to the more moderate rise in prices of food and non-alcoholic beverages, which carry significant weight in the consumer basket. In April 2024, inflation in these areas stood at 4.1%. 

Source: philstar.com