Headline inflation decreased from 2.3 percent in April to 1.9 percent in May 2025, remaining below the lower bound of the medium-term objective range of 3 – 6 percent, and was lower than the 3 percent recorded in May 2024. The decrease in inflation between April and May 2025 was mainly on account of the reduction in water tariffs (30 percent for 0 – 5 kilolitres and 15 percent for >5 – 10 kilolitres) effected in April 2025, which reduced headline inflation by 0.23 percentage points. Furthermore, inflation decreased on account of the deceleration in the rate of annual price changes of some categories of goods and services, notably Alcoholic Beverages & Tobacco and Transport. Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices decreased from 2.3 percent and 4.1 percent to 1.8 percent and 3.7 percent respectively, between April and May 2025.
Inflation for domestic tradeables decreased from 4.9 percent to 4.5 percent between April and May 2025, mainly on account of a decrease in some food prices. Similarly, inflation for imported tradeables decreased from 1.2 percent to 0.8 percent over the same period, mainly on account of the decrease in the price of fruits and vegetables, including oranges, pineapples, fresh cucumber and fresh green pepper. Consequently, all tradeables inflation fell from 2.2 percent to 1.8 percent between April and May 2025. Inflation for non-tradeables also decreased from 2.5 percent to 2 percent in the same period, mainly on account of the reduction in water tariffs.