Inflation rate in the Philippines eased in May to 3.1 percent from 3.4 percent in April, the government said on Tuesday.

The National Economic and Development Authority (NEDA) said the inflation rate recorded in May is lower than market expectation of 3.3 percent, and is within the government's target of 2 to 4 percent for 2017.

"Slower price adjustments in both food and non-food commodities contributed to slower inflation in May 2017," the agency said in statement.

It said inflation for the food and non-alcoholic beverages subgroup eased to 3.8 percent form the pervious month's 4.2 percent due to slower price adjustments in vegetables, fish, oils and fats as well as sugar, jam, honey, chocolate and confectionery.

The NEDA said the resilience of crops in northern Philippines that withstood unfavorable weather and forest earlier this year resulted in the lowering of vegetable prices.

However, it said other food commodities like fruits, meat and rice recorded faster price increases in May. Rice inflation also accelerated further to 2.4 percent, it added.

"These trends bear watching, given the significant impact of food prices on the poor. The amendment of domestic laws to reflect the expiry of the WTO (World Trade Organization) waiver on rice quotas should also be pursued," said Socioeconomic Planning Secretary Ernesto Pernia.

Meanwhile, the agency said non-food inflation also slowed to 2.5 percent in May from 2.7 in April due to slower price adjustments for clothing and footwear, furnishing, household equipment, health, transport, communication, and recreation and culture.

"This follows the slower year-on-year increase in domestic petrol prices during the period," NEDA said.

The agency also recorded a slower inflation for unleaded gasoline, diesel, kerosene and liquified petroleum gas in May.

Pernia predicted an optimistic outlook in the country's economy.

"On the external front, growth prospects of the global economy have improved, and the expected recovery of international trade should provide ample supply of commodities to support domestic production," Pernia said.