The Department of Finance still expects a slower inflation rate in the months ahead with the stabilization in food supply and declining oil prices.
In an economic bulletin released Tuesday, the DoF said slower inflation would continue to boost consumption spending.
“On the other hand, the passage of the General Appropriations Act will enable government to resume public construction growth and bring back GDP growth above 6 percent in the quarters ahead,” it said.
The inflation rate in May rose to 3.2 percent from 3 percent a month ago, due to faster increases in the prices of food and beverages. The figure brought the average in the first five months to 3.5 percent, well within the target range of 2 to 4 percent for the year.
The month-on-month inflation dropped slightly to 0.17 percent in May from 0.25 percent in April but year-on-year inflation rose by 0.18 percentage point to 3.19 percent YOY in May due to low base from a year earlier.