Date Released: June 7, 2005
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
MAY AND APRIL 2005
Year-on-Year Inflation Rates, All Items |
|||
| May | April | Year-to-date | |
| Philippines | |||
| Headline | 8.5 | 8.5 | 8.4 |
| Core | 7.6 | 7.8 | 7.9 |
| NCR | |||
| Headline | 8.6 | 8.9 | 8.8 |
| AONCR | |||
| Headline | 8.3 | 8.4 | 8.3 |
On its fourth month during the year, year-on-year headline inflation rate in the Philippines remained at 8.5 percent in May. Inflation a year ago was 4.5 percent.
Excluding selected food and energy items, core inflation was posted at 7.6 percent in May, slightly slower than its April rate of 7.8 percent.
Inflation rate in the National Capital Region (NCR) decelerated by 0.3 percentage point to 8.6 percent in May from 8.9 percent in April mainly due to the improved annual increases in the prices of food, beverages and tobacco (FBT) items. Slower annual rate of increments recorded in the prices of clothing and services items also contributed to the downtrend.
Similarly, inflation rate in Areas Outside the National Capital Region (AONCR) slowed down to 8.3 percent in May from 8.4 percent in April. Except for FLW and miscellaneous items, inflation rates for all the commodity groups were lower in May than those in April.
Month-on-Month Inflation Rates, All Items |
||
| May | April | |
| Philippines | 0.5 | 0.6 |
| NCR | 0.3 | 0.8 |
| AONCR | 0.6 | 0.5 |
Higher prices were observed in selected food items particularly bread, flour, biscuits, meat and milk and milk products. Price increases in clothing items, housing and repairs (H&R) items, fuel, light and water (FLW) items and services items were slower compared to the increments in April. Thus, consumer prices slowly moved upward at 0.5 percent in May from 0.6 percent in April.
CONSUMER PRICE
INDEX
(2000=100)
MAY 2005
l By Region, Year-on-Year
The inflation rate in NCR eased by 0.3 percentage point to 8.6 percent in May from 8.9 percent in April.
Inflation rate in AONCR at 8.3 percent in May was slightly slower by 0.1 percentage point from 8.4 percent in April. Six regions recorded lower inflation rates with the biggest slowdown of 0.6 percentage point (9.9 percent from 10.5 percent) observed in Ilocos. The lowest rate was still in Bicol at 6.9 percent while the highest rate was noted in Southern Mindanao at 10.6 percent.
l By Commodity Group, Year-on-Year
Inflation rates for FLW and miscellaneous items correspondingly went up to 20.1 percent and 3.5 percent in May from their respective April rates of 19.7 percent and 3.2 percent. However, inflation for FBT slowed to 6.9 percent from 7.0 percent; clothing, 3.7 percent from 3.8 percent; and services, 14.3 percent from 14.5 percent. Inflation for H&R was at its April rate of 4.8 percent.
The inflation rate for food alone further eased to 7.0 percent in May from 7.1 percent in April.
Slower annual rate of increments were seen in the prices of dairy products, 11.9 percent in May from 12.1 percent in April; fish, 6.9 percent from 7.7 percent; fruits and vegetables, 6.5 percent from 7.9 percent; and meat, 4.9 percent from 6.8 percent. On the other hand, higher annual inflation rate was posted in the price of rice, 7.8 percent from 6.0 percent; cereal preparations, 9.8 percent from 9.4 percent; eggs, 4.7 percent from 3.8 percent; and miscellaneous foods, 6.0 percent from 5.9 percent. Inflation for corn remained at its April rate of 9.3 percent.
In NCR, inflation for FBT, clothing and services correspondingly slowed to 3.9 percent, 3.3 percent and 13.5 percent in May from their respective April rates of 4.6 percent, 3.4 percent and 13.6 percent. However, inflation for H&R moved up to 6.3 percent from 6.1 percent; FLW, 32.5 percent from 32.0 percent; and miscellaneous items, 3.2 percent from 2.9 percent.
Inflation for food alone in NCR at 3.9 percent in May was slower than its April rate of 4.6 percent.
Negative annual rate was still posted in the price of eggs, -1.1 percent from -3.5 percent. Moreover, annual add-ons in the prices of dairy products improved to 10.7 percent from 11.3 percent; fish, 1.2 percent from 1.7 percent; fruits and vegetables, 3.5 percent from 5.8 percent; meat, 4.0 percent from 5.5 percent; and miscellaneous foods, 1.8 percent from 2.0 percent. On the other hand, faster annual price hikes were correspondingly seen in corn and cereal preparations at 9.9 percent and 9.6 percent from 8.5 percent and 9.1 percent. Annual inflation in rice remained at 5.5 percent.
In AONCR, inflation rate for FBT slightly eased to 7.8 percent in May from 7.9 percent in April; clothing, 3.8 percent from 3.9 percent; H&R, 3.7 percent from 3.8 percent; and services, 14.8 percent from 14.9 percent. On the contrary, inflation for FLW and miscellaneous items correspondingly grew to 14.3 percent and 3.5 percent from their respective previous month’s rates of 13.8 percent and 3.3 percent.
Inflation rate for food alone in AONCR was slightly slower at 7.9 percent in May from 8.0 percent in April.
Annual upward adjustment in the price of corn slowed to 9.2 percent in May from 9.3 percent in April; dairy products, 12.3 percent from 12.6 percent; fish, 8.2 percent from 9.3 percent; fruits and vegetables, 7.5 percent from 8.4 percent; and meat, 5.3 percent from 7.3 percent. Higher annual price gains were however noted in cereal preparations, 9.9 percent from 9.5 percent; eggs, 6.5 percent from 6.2 percent; and miscellaneous foods, 7.8 percent from 7.7 percent.
On an annual basis, the price of rice rose to 8.1 percent in May from 6.1 percent in April. Except for CALABARZON and Eastern Visayas, all the regions posted higher rates. The biggest jump of 6.6 percentage points (12.4 percent from 5.8 percent) was recorded in CAR followed by Central Mindanao at 4.8 percentage points (9.1 percent from 4.3 percent).
l By Region, Month-on-Month
The month-on-month inflation in NCR registered at 0.3 percent in May was slower than 0.8 percent in April. Prices of clothing items increased by only 0.1 percent in May from 0.2 percent in April; H&R and services items, 0.2 percent from 0.7 percent and 1.1 percent, respectively; and FLW items, 0.8 percent from 2.6 percent. Add-ons in the prices of FBT and miscellaneous items remained at 0.3 percent.
Prices in AONCR went up by 0.6 percent in May compared to the 0.5 percent in April mainly brought about by the 0.7 percent acceleration in the prices of FBT items. Moreover, prices of FLW items advanced by 1.1 percent from 0.6 percent. While increments in the prices of services items slowed down to 0.5 percent from 0.6 percent, increases in the prices of clothing and miscellaneous items were still registered at 0.3 percent and H&R items, 0.2 percent. The highest month-on-month inflation at 1.2 percent was noticed in CAR while the lowest rate at 0.2 percent was observed in Eastern Visayas.
l By Commodity Group, Month-on-Month
The month-on-month inflation rate at the national level slightly decelerated to 0.5 percent in May from 0.6 percent in April. Slowdowns were noted in the price increases of clothing and H&R items at 0.2 percent from their respective rates of 0.3 percent and 0.4 percent; FLW items, 1.0 percent from 1.3 percent; and services items, 0.3 percent from 0.8 percent. However, prices of FBT items rose to 0.6 percent from 0.5 percent while prices of miscellaneous items still moved upward at 0.3 percent.
The price of rice in NCR generally remained stable during the month as its index posted a zero growth from 4.0 percent last month. On the other hand, the price of rice in AONCR advanced by 2.1 percent from 1.7 percent as twelve regions registered higher rates. Thus, the national index grew by 1.9 percent, slightly slower than 2.0 percent in April.
The extreme heat experienced during the month resulted to stunted growth of chicken thereby affecting the volume of its supply in the markets. In addition, the bigger demand for fresh meat primarily brought about by the observance of fiestas in many areas pulled up meat prices. All these factors further raised the meat index in the county by 0.7 percent in May from 0.4 percent in April; NCR, 1.6 percent from 0.5 percent; and AONCR, 0.4 percent from 0.3 percent.
The continued upward adjustments in the prices of sugar, cooking oil, margarine, coffee and selected spices and seasonings in most of the regions including NCR effected a 0.5 percent increase in the miscellaneous foods index in the Philippines, 0.2 percent in NCR and 0.7 percent in AONCR.
The favorable weather condition resulted to abundant supply of marine fish species in the markets. This brought down the fish indices in the three areas: Philippines, -0.6 percent; NCR, -1.5 percent; and AONCR, -0.4 percent.
The indices for cereal preparations in the Philippines and AONCR were up by 0.8 percent and 1.1 percent in NCR due to the price hikes registered in flour, bread and biscuits. Add-on in the price of noodles in some regions also contributed to the uptrend.
The warm temperatures experienced during the month brought big spoilage of some vegetables thereby increasing their prices. Hence, a 0.1 percent upward push in the fruits and vegetables index was noted in NCR. Meanwhile, reductions in the prices of selected fruits particularly mango and pineapple along with the price decreases of selected vegetables resulted to a 0.3 percent drop in the group’s index for the Philippines and AONCR. These were however, faster than their respective April rates of -0.7 percent and -0.9 percent.
The dairy products index in the Philippines grew by 0.6 percent; NCR, 0.7 percent; AONCR, 0.4 percent. This was triggered by higher production costs of milk and milk products due to the increased world prices of skimmed milk powder, coconut oil and tinplates.
Additions in the prices of diesel, engine oil, lubricating oil, battery and automobile tire along with higher charges for vehicle tune-up and wheel alignment in NCR effected a 0.2 percent uptick in its index for services. Similarly, price gains in gasoline, diesel, engine oil and medicines recorded in some regions also pulled up the services index in AONCR by 0.5 percent. Overall, the national index was up by 0.3 percent.
The continued increments in the prices of LPG and kerosene and higher generation and system loss charges in electricity consumptions in NCR raised the FLW index in the area by 0.8 percent during the month. This was however, slower than its last month rate of 2.6 percent. Higher prices of LPG, charcoal, kerosene and firewood in many regions mainly contributed to the 1.1 percent price gain in the FLW index in AONCR. Movement in the national index improved to 1.0 percent from 1.3 percent last month.
Upward adjustments in the prices of selected construction materials such as cement, plywood, lumber, hollow blocks and nails pegged the increase in the H&R index in the three areas at 0.2 percent.
NOTES:
The second phase CPI survey reports from North Cotabato was not received as of June 7, 2005.
CPIs and inflation rates by province and selected city are also available upon request at NSO, Industry and Trade Statistics Department, Economic Indices and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).
(Sgd.) CARMELITA N. ERICTA
Administrator
Source: National Statistics Office
Manila, Philippines
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