Manila - The Philippines year-on-year inflation rate slid to an 18-month low of 3.3 per cent in May as prices of basic commodities eased, the government said Friday.

The National Statistics Office (NSO) said the May index was also lower than April's 4.8-per-cent inflation rate. Inflation in May 2008 was at 9.5 per cent.

The decline "was mainly effected by the downward adjustments in electricity rates and price rollbacks in liquified petroleum gas, kerosene, diesel and gasoline," the NSO said.

"Inflation rate for food alone was still on a downward trend as it settled at 6 per cent in May from 8.2 per cent in April," it said.

The May inflation rate brought to 5.7 per cent the average inflation rate for the first five months of the year.

The lower inflation rate would give the central bank more leeway to cut key interest rates, according to Governor Amando Tetangco.(dpa)