Date Released: August 5, 2005
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
JULY AND JUNE 2005
Year-on-Year Inflation Rates, All Items |
|||
| July | June | Year-to-date | |
| Philippines | |||
| Headline | 7.1 | 7.6 | 8.2 |
| Core | 6.8 | 7.1 | 7.6 |
| NCR | |||
| Headline | 8.9 | 8.4 | 8.7 |
| AONCR | |||
| Headline | 6.3 | 7.3 | 7.9 |
Year-on-year headline inflation rate at the national level slowed down to 7.1 percent in July from 7.6 percent in June. Except for housing and repairs and miscellaneous items, inflation rates for all the commodity groups decelerated. Inflation a year ago was 6.6 percent.
Excluding selected food and energy items, core inflation eased by 0.3 percentage point to 6.8 percent in July from 7.1 percent in June.
Inflation rate in the National Capital Region (NCR) went up by 0.5 percentage point to 8.9 percent in July from 8.4 percent in June. Higher annual increments in the prices of food, beverage and tobacco, housing and repairs, services and miscellaneous items contributed to the uptrend.
Inflation rate in Areas Outside the National Capital Region (AONCR) slowed down to 6.3 percent in July from 7.3 percent in June due to lower inflation rates in all the commodity groups except in fuel, light and water.
Month-on-Month Inflation Rates, All Items |
||
| July | June | |
| Philippines | 0.9 | 0.9 |
| NCR | 1.1 | 1.5 |
| AONCR | 0.7 | 0.6 |
On a month-on-month basis, prices moved by 0.9 percent in July, the same rate recorded in June. This was due to the higher prices of selected food items such as miscellaneous foods, rice, fruits and vegetables, cereal preparations, and eggs. Price hikes in services, housing and repairs and fuel, light and water items also contributed to the increase.
CONSUMER PRICE
INDEX
(2000=100)
JULY 2005
l By Region, Year-on-Year
The inflation rate for the NCR grew by 0.5 percentage point to 8.9 percent in July from 8.4 percent in June.
Inflation rate in AONCR at 6.3 percent in July was slower by 1.0 percentage point from 7.3 percent in June. Except for MIMAROPA and Western Mindanao which retained their previous month’s rates, the other regions recorded lower inflation rates. The biggest slowdown was observed in Central Luzon and Southern Mindanao at 1.5 percentage points. The lowest rate was seen in Central Luzon at 5.1 percent while the highest rate at 8.6 percent was registered in Autonomous Region in Muslim Mindanao (ARMM).
l By Commodity Group, Year-on-Year
All the commodity groups posted lower rates in June except for housing and repairs (H&R) whose inflation rose to 4.7 percent, and miscellaneous items whose inflation remained at 3.4 percent. The inflation rate for food, beverages and tobacco (FBT) eased to 5.9 percent in July from 6.5 percent in June; clothing, 3.5 percent from 3.7 percent; fuel, light and water (FLW), 18.9 percent from 19.1 percent; and services, 9.9 percent from 11.2 percent.
The inflation rate for food alone decelerated to 5.9 percent in July from 6.5 percent in June.
Slower rates were noted in the prices of cereals, 7.4 percent in July from 8.0 percent in June; rice, 7.5 percent from 7.9 percent; corn, 6.4 percent from 8.7 percent; cereal preparations, 8.9 percent from 9.5 percent; dairy products, 10.0 percent from 10.9 percent; eggs, 3.5 percent from 3.7 percent; fish, 5.8 percent from 7.1 percent; and meat, 4.9 percent from 5.0 percent. Prices of fruits and vegetables declined by -0.1 percent from 3.5 percent. Meanwhile, price gains were higher in miscellaneous foods at 6.3 percent from 5.6 percent and meals eaten outside at 5.8 percent from 4.4 percent.
In NCR, inflation for clothing and FLW correspondingly slowed down to 3.1 percent and 31.9 percent in July from their respective June rates of 3.2 and 32.6 percent. However, inflation for FBT moved up to 4.4 percent from 4.2 percent; H&R, 7.1 percent from 6.3 percent; services, 12.8 percent from 11.3 percent; and miscellaneous items, 3.2 percent from 3.1 percent.
Inflation for food alone in NCR went up to 4.4 percent in July from 4.2 percent in June.
Higher annual inflation rates were observed in the prices of meat, 6.5 percent from 6.1 percent; miscellaneous food items, 4.1 percent from 1.3 percent; and meals eaten outside, 3.8 percent from zero growth. On the other hand, annual add-ons in the prices of cereals moved slower at 5.0 percent from 5.3 percent; rice, 4.9 percent from 5.2 percent; corn, 11.6 percent from 12.2 percent; cereal preparations, 8.8 percent from 9.0 percent; dairy products, 9.9 percent from 10.4 percent; and fish, 4.1 percent from 5.6 percent. Negative annual rate was still posted in the price of eggs at -0.2 percent from -1.6 percent. Moreover, inflation for fruits and vegetables further decelerated to -5.3 percent from -1.6 percent.
In AONCR, all the commodity groups had slower annual growths in July except for FLW whose rate gained by 0.2 percentage point. Inflation for FBT slackened to 6.4 percent in July from 7.2 percent in June; clothing, 3.7 percent from 3.8 percent; H&R, 2.8 percent from 3.0 percent; services, 8.4 percent from 11.2 percent; and miscellaneous items, 3.3 percent from 3.4 percent.
Inflation rate for food alone was lower by 0.9 percentage point to 6.3 percent in July from 7.2 percent in June.
Slower annual price increments were noticed in cereals, 7.7 percent from 8.4 percent; corn, 6.3 percent from 8.7 percent; cereal preparations, 8.9 percent from 9.7 percent; dairy products, 10.0 percent from 11.1 percent; eggs, 4.6 percent from 5.4 percent; fish, 6.2 percent from 7.4 percent; fruits and vegetables, 1.6 percent from 4.7 percent; meat, 4.3 percent from 4.5 percent; miscellaneous foods, 7.4 percent from 7.5 percent; and meals eaten outside, 6.9 percent from 7.0 percent.
The annual price addition in rice was at 7.9 percent in July from 8.3 percent in June as eleven regions registered slower rates. The biggest slowdown at 3.0 percentage points (4.1 percent from 7.1 percent) was recorded in Central Visayas followed by Southern Mindanao at 2.5 percentage points (7.2 percent from 9.7 percent).
l By Region, Month-on-Month
Prices in NCR went up by 1.1 percent in July, slower than the 1.5 percent noted in June. The monthly growth for FLW slid to -0.4 percent from 2.7 percent in June due to lower electricity rates in the area. Price movements in services were slower at 2.7 percent from its last month’s rate of 3.8 percent. On the other hand, price hikes in H&R items was recorded at 0.8 percent from 0.1 percent. Similarly, add-ons in the prices of clothing items and miscellaneous items slightly increased to 0.2 percent from their respective June rates of 0.1 percent and zero growth. Prices of FBT items were still on the uptrend at 0.8 percent, the same rate observed in June.
Prices in AONCR picked up by 0.7 percent in July from 0.6 percent in June brought about by the higher rates posted in two commodity groups. The rates of FLW increased by 1.5 percent in July from 0.5 percent in June; and services, 1.7 percent from 1.1 percent. Prices of FBT items rose by 0.6 percent; clothing, 0.3 percent; and H&R items, 0.2 percent. Add-ons in the prices of miscellaneous items slightly slowed down to 0.2 percent from 0.3 percent. Eleven regions recorded higher monthly inflation rates compared to June. The highest month-on-month inflation at 1.5 percent was noticed in Ilocos while the lowest rate at 0.4 percent was seen in Eastern Visayas.
l By Commodity Group, Month-on-Month
At the national level, month-on-month inflation rate in July was at 0.9 percent, the same rate posted in June. Price add-ons in services and miscellaneous items were at their previous month’s rates of 2.1 percent and 0.2 percent respectively. Price gains were slower in FBT items, 0.6 percent from 0.7 percent; clothing items, 0.2 percent from 0.3 percent; and FLW, 0.8 percent from 1.3 percent. Upward adjustments were noted in the prices of H&R items at 0.5 percent from 0.2 percent.
Higher prices of cooking oil, coffee, sugar, margarine, tea, selected spices and seasonings and meals eaten outside the home observed in some regions including NCR raised the miscellaneous foods index by 1.3 percent in the Philippines, 2.9 percent in NCR, and 0.7 percent in AONCR.
The price of rice in NCR rose to 0.1 percent from -0.3 percent. In AONCR, its price moved up by 1.1 percent, the same rate registered last month. On the national level, the index grew by 1.0 percent from 0.9 percent.
Abundant supply of fruits and vegetables in NCR caused a significant drop in the group’s index at -1.1 percent from 3.3 percent last month. However, the group’s index in AONCR went up to 1.3 percent from 0.3 percent due to higher prices of some fruits and vegetables in the wet markets. The national index moved up at a slower rate of 0.7 percent from 1.0 percent.
Add-ons in the prices of flour, bread, biscuits and noodles advanced the cereal preparations index by 0.7 percent in the NCR and 0.4 percent in AONCR. The group’s national index moved up by 0.5 percent.
Insufficient supply of eggs brought about by low production pulled up its prices in the three areas: Philippines, 1.5 percent; NCR, 4.8; and AONCR, 0.5 percent.
A 1.7 percent growth in the index for services in AONCR can be attributed to the rising adjustments in the prices of diesel, gasoline, engine oil, medicines and selected school supplies. Likewise, tuition fee hikes and increases in jeepney and bus fares in many regions were observed during the month. On the other hand, the index for services in NCR moved up at 2.7 percent, slower than the 3.8 percent increase in June. Thus, the national index retained its last month’s rate of 2.1 percent.
Price gains in cement, lumber, sand, paints, G.I sheets, plywood and nails in some regions including the NCR pushed up the H&R index in the Philippines and NCR by 0.5 percent and 0.8 percent in July from their corresponding June rates of 0.2 percent and 0.1 percent. The H&R index in AONCR was up by 0.2 percent, the same rate registered in the previous month.
Higher electricity and water rates in AONCR along with the continued increase in the prices of LPG and kerosene caused the FLW index in the area to grow by 1.5 percent in July from 0.5 percent in June. However, lower charges in electricity consumptions in NCR brought down the FLW index in the area by -0.4 percent from an increase of 2.7 percent in June. At the national level, the index moved up at a slower pace of 0.8 percent from 1.3 percent in June.
NOTES:
The CPI 1st and 2nd phase survey reports from Zamboanga City were not received as of August 5, 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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