Manila, Philippines – May 30, 2025 – The Philippine Statistics Authority (PSA) has released the official April 2025 inflation figure, showing a year-on-year decline to 3.6%, down from 3.8% in March. This marks the second consecutive month of easing inflation, reinforcing market speculation that the Bangko Sentral ng Pilipinas (BSP) may begin cutting interest rates as early as Q3.
🔢 Key Data Highlights:
- Headline inflation: 3.6% (vs 3.8% in March)
- Core inflation: 3.3%
- Food & non-alcoholic beverages: +5.1%
- Transport: +2.4%
- Housing, water, electricity, and gas: +1.6%
🧮 BSP Response & Policy Outlook
BSP Governor Eli Remolona welcomed the data but emphasized that policy decisions will remain data-driven. He noted:
“The moderation in inflation is encouraging. However, external risks and food supply challenges remain.”
Market analysts from BDO and ING forecast that if inflation continues to trend lower, the BSP could implement a 25-basis-point rate cut in August or September.
💸 Impact on Borrowers and Lenders
- Loan interest rates may decrease later in 2025, reducing the cost of personal, SME, and housing loans.
- Online lending platforms such as Digido, MoneyCat, and Crezu could adjust APRs in response to a more accommodative policy environment.
- Banks are expected to resume more aggressive lending campaigns in H2 2025.
📊 Broader Economic Implications
- GDP growth for 2025 may benefit from lower financing costs.
- Consumer spending is likely to increase as inflation eases and interest burdens decline.
- SME sector may see improved access to credit, aiding post-pandemic recovery.
🧠What to Watch Next:
| Date | Event |
|---|---|
| June 13 | BSP Monetary Board policy meeting |
| Mid-June | BSP releases Q1 credit market report |
| July 5 | Next CPI report (May inflation data) |
This article was written and published by the editorial team at Cash24.ph, based on verified data and reports from PSA, BSP, and trusted financial sources.