Philippines' Inflation Slows in May Amid U.S.-Iran Ceasefire Talks

Inflation in the Philippines eased in May, influenced by U.S.-Iran ceasefire negotiations that have curbed fuel prices, reducing the urgency for emergency monetary policy tightening. According to Jin10, the Philippine Statistics Authority reported on Friday that consumer prices rose by 6.8% year-on-year in May, down from 7.2% in April and below the surveyed median expectation of 7.8%. An initial agreement to extend the ceasefire has sparked hopes that the U.S.-Iran conflict might be nearing resolution. This development has led to a decrease in global energy prices, benefiting the Philippines, which imports over 90% of its oil needs from the Middle East. Philippine Central Bank Governor Eli Remolona stated that policymakers will closely monitor the latest inflation data before deciding whether to raise the benchmark policy rate at the June 18 meeting. The central bank had previously projected May's inflation rate to be between 7.1% and 7.9%.