In a surprising continuation of deflationary trends, April's Consumer Price Index (CPI) in the Philippines registered a fall to -0.4%, according to the latest data updated on May 6, 2025. This marks a further dip from March's CPI of -0.2%, suggesting a deepening slowdown in consumer price growth for the Southeast Asian nation.
The month-over-month comparison indicates that the April data represents an ongoing contraction, as the March CPI had already shown a negative trajectory when compared against the numbers prior to it. Economists suggest this continued deflation could be indicative of various underlying economic factors at play, such as subdued consumer demand or shifts in global commodity prices affecting local markets.
While deflation can temporarily benefit consumers through lower prices, prolonged periods can raise concerns over stagnation in economic growth. Authorities and policymakers in the Philippines are likely to pay close attention to these CPI trends in the coming months as they work to balance economic growth with price stability.
