Philippine inflation eases further in May, central bank signals easing
MANILA :Philippine annual inflation eased for a fourth consecutive month in May, driven by slower increases in utility and food prices, the government said on Thursday, and the central bank said the data would allow for a more accommodative monetary policy.
The consumer price index rose 1.3 per cent year-on-year in May, down from 1.4 per cent in April, marking the lowest inflation rate since November 2019. The figure matched the forecast in a Reuters poll and brought the year-to-date average to 1.9 per cent, undershooting the central bank's 2.0 per cent to 4.0 per cent target range for the year.
"On balance, the more manageable inflation outlook and the downside risks to domestic economic activity allow for a shift toward a more accommodative monetary policy stance," the central bank said in a statement.
Price increases for housing, water, electricity, and other fuel items moderated to 2.3 per cent in May from 2.9 per cent in April, while transport costs declined more sharply, falling 2.4 per cent versus April's 2.1 per cent drop.
Core inflation, which excludes volatile food and energy prices, was steady at 2.2 per cent
"Looks like the door remains wide open for the Bangko Sentral ng Pilipinas (BSP, the central bank) to cut rates in June,' said Metrobank economist Nicholas Mapa on X.
The BSP resumed monetary easing in April, cutting its key policy rate by 25 basis points to 5.5 per cent to support economic growth amid global headwinds. The central bank is scheduled to review policy again on June 19.
On Thursday, the lower house of Congress approved a bill raising the daily minimum wage by 200 pesos ($3.60), which the country's chief statistician said could have inflationary effects.
($1 = 55.574 Philippine pesos)
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When vendors and contractors don't deliver: The painful road to restitution for customers and why some just can't get their money back
After repeated disagreements with her interior designer, Ms Shasha wanted to cancel the renovation contract in February 2023 and get a refund for the work that was not completed, which she estimated to be approximately S$14,000 after checking against the company's quotation. However, the firm only offered S$2,800 in compensation. Ms Shasha and her husband were told that if they wanted the full amount they were seeking, they would need to engage a lawyer. Not wanting to go through the hassle and cost of legal action, they felt they had no choice but to proceed with the firm. "At the time, my husband and I were unaware of the SCT and believed legal action would be costly. We were also hoping to move in before Hari Raya, which was in line with the renovation timeline," she said. Unfortunately, further setbacks soon followed, including manpower delays, absences due to COVID-19 that were not communicated to her, as well as poor workmanship. 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'Some couples went to SCT and got a writ, but enforcing that writ meant hiring a debt collector to recover goods or money. 'It's not easy. You'd have to seize assets like gowns and sell them. That's not practical for us when there were so many couples involved.' Police investigation for the case is still ongoing. WHY SOME CASES DON'T END UP IN COURT Lawyer Chooi Jing Yen said that while such cases of contractors who default after prepayments are made are relatively common, most do not end up before a judge or a tribunal magistrate. 'A lot of people don't decide to start legal proceedings because sometimes, even after spending all the legal costs and getting a judgment, they still can't collect the money,' he said. 'The company might decide to wind up or simply have no assets due to poor management. This is a risk that people should consider before initiating legal action because if you can't sue to get your money back, it becomes very difficult.' Some victims may be confused as to why the police classify such cases as civil rather than criminal. To this, Mr Chooi, who is director of law firm Chooi Jing Yen LLC, said the classification often depends on specific legal thresholds. For instance, if the company genuinely intended to carry out the work at the start but encountered problems midway, it typically would not amount to a criminal offence, as there was no initial intent to deceive, he said. 'It only becomes criminal if it can be shown that there was no intention to complete the job from the outset. But proving that intent can be difficult.' Mr Abdul Rahman Mohd Hanipah, lawyer and managing director of law firm ARLC, said renovation disputes are usually treated as civil matters, especially if they appear to be isolated cases. 'If it seems like a one-off situation where a contractor failed to deliver on a job, it's typically treated as a civil matter, and the appropriate course of action would be to file a civil claim to recover your money.' However, Mr Abdul Rahman said that if there is a pattern of conduct – for example, multiple clients reporting similar experiences – then it could potentially fall under Section 420 of the Penal Code, which covers cheating and dishonestly inducing someone to deliver property. The offence carries a jail term of up to 10 years, a fine, and caning. "There may also be elements of criminal breach of trust if a contractor was entrusted with funds meant specifically for renovation works but used the money for other purposes." In criminal cases like cheating, Ms Christine Low, director of law firm Peter Low Chambers, said restitution – the act of returning or compensating for losses caused by the offender's actions – is possible but not a legal right that victims can demand as part of sentencing. "However, it can play an important mitigating role, as offenders who voluntarily compensate victims may receive lighter sentences. "The court's focus in criminal cases is on punishment and deterrence, not compensation, so victims usually need to pursue civil lawsuits to obtain full restitution." While such a law protects consumers from cheating, Mr Shanmugam, in a parliamentary reply in 2024, said that the authorities observed that many cases of non-fulfilment of contracts were not the result of fraud, but business distress. "The right course is in civil remedies, which have been made easier to access over the years. 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