In a new report, Bank of the Philippine Islands (BPI) said the latest figures support easing, with core inflation steady at 2.2 percent and rice prices falling nearly 11 percent.
With food and transport costs declining, BPI noted that consumers are regaining spending power, which could help revive domestic demand.
The timing is crucial, the bank added, as global trade risks tied to US tariffs weigh on economic momentum.
Lower oil prices and redirected exports could further ease inflation, creating room for policy action. Still, BPI said the BSP will likely wait for the release of economic growth data on May 8, as a weaker print further reinforces the case for a rate cut.
The bank also cautioned that future global price shocks and potential US policy shifts remain key risks.
