Date Released: September 6, 2005
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
AUGUST AND JULY 2005
Year-on-Year Inflation Rates, All Items |
|||
| August | July | Year-to-date | |
| Philippines | |||
| Headline | 7.2 | 7.1 | 8.1 |
| Core | 6.6 | 6.8 | 7.5 |
| NCR | |||
| Headline | 9.0 | 8.9 | 8.8 |
| AONCR | |||
| Headline | 6.4 | 6.3 | 7.7 |
Year-on-year headline inflation rate in the Philippines slightly picked up by 0.1 percentage point to 7.2 percent in August from 7.1 percent in July as the inflation rates for housing and repairs (H&R) and services moved upward. Inflation a year ago was 6.8 percent.
Excluding selected food and energy items, core inflation slowed down by 0.2 percentage point to 6.6 percent in August from 6.8 percent in July.
Inflation rate in the National Capital Region (NCR) increased to 9.0 percent in August from 8.9 percent in July. Higher inflation rates for all the commodity groups except for food, beverages and tobacco (FBT) were noticed during the month.
Similarly, inflation rate in Areas Outside the National Capital Region (AONCR) slightly went up by 0.1 percentage point to 6.4 percent in August from 6.3 percent in July as inflation of H&R and services were on the uptrend.
Month-on-Month Inflation Rates, All Items |
||
| August | July | |
| Philippines | 0.5 | 0.9 |
| NCR | 0.2 | 1.1 |
| AONCR | 0.5 | 0.7 |
The month-on-month inflation rate was recorded at 0.5 percent in August. This was slower than the 0.9 percent growth in July. Increases in the prices of all the commodity groups except for clothing and miscellaneous items slowed down during the period in review.
CONSUMER PRICE
INDEX
(2000=100)
AUGUST 2005
l By Region, Year-on-Year
Inflation rate in NCR slightly grew by 0.1 percentage point to 9.0 percent in August from 8.9 percent in July.
Inflation rate in AONCR rose to 6.4 percent in August from 6.3 percent in July. Six regions posted higher inflation rates. The biggest increase of 0.6 percentage point (7.4 percent from 6.8 percent) was registered in MIMAROPA. The highest rate was still recorded in Autonomous Region in Muslim Mindanao (ARMM) at 8.6 percent while the lowest rate was still in Central Luzon at 5.0 percent.
l By Commodity Group, Year-on-Year
Annual inflation rates for H&R and services correspondingly went up to 4.8 percent and 10.0 percent in August from their respective rates of 4.7 percent and 9.9 percent in July. Meanwhile, inflation for FBT slowed to 5.8 percent from 5.9 percent; FLW, 18.7 percent from 18.9 percent; and miscellaneous items, 3.3 percent from 3.4 percent. Inflation for clothing remained at 3.5 percent.
The inflation rate for food alone slightly decelerated to 5.8 percent in August from 5.9 percent in July.
Annual price increments were slower in corn, 3.2 percent in August from 6.4 percent in July; cereal preparations, 8.0 percent from 8.9 percent; dairy products, 8.3 percent from 10.0 percent; eggs, 2.8 percent from 3.5 percent; fish, 5.1 percent from 5.8 percent; and miscellaneous foods, 6.2 percent from 6.3 percent. However, annual price additions were correspondingly higher in rice and fruits and vegetables at 7.6 percent and 2.2 percent from 7.5 percent and -0.1 percent, respectively. The annual price increase in meat remained at 4.9 percent.
In NCR, inflation for all the commodity groups posted higher rates except for FBT whose growth rate was slower at 4.2 percent in August from 4.4 percent in July. Inflation for clothing slightly climbed up to 3.2 percent from 3.1 percent; H&R, 7.4 percent from 7.1 percent; FLW, 32.2 percent from 31.9 percent; services, 12.9 percent from 12.8 percent; and miscellaneous items, 3.3 percent from 3.2 percent.
Inflation for food alone in NCR eased to 4.1 percent in August from 4.4 percent in July.
Negative annual rates were still registered in the prices of eggs (-0.7%) and fruits and vegetables (-0.6%) from -0.2 percent and -5.3 percent, respectively.
Moreover, slower annual price hikes were noticed in rice, 4.7 percent in August from 4.9 percent in July; corn, 9.8 percent from 11.6 percent; cereal preparations, 7.5 percent from 8.8 percent; dairy products, 8.6 percent from 9.9 percent; fish, 0.4 percent from 4.1 percent; and meat, 6.0 percent from 6.5 percent. Inflation for miscellaneous foods was still posted at 4.1 percent.
In AONCR, inflation for H&R and services respectively grew to 3.0 percent and 8.5 percent in August from their rates of 2.8 percent and 8.4 percent. On the other hand, inflation for FBT slipped to 6.2 percent from 6.4 percent; clothing, 3.6 percent from 3.7 percent; and FLW, 12.4 percent from 12.8 percent. Inflation for miscellaneous items was at its last month’s rate of 3.3 percent.
Inflation rate for food alone at 6.3 percent in August was the same rate recorded in July.
Annual price increments were higher in fruits and vegetables and meat at 3.1 percent and 4.4 percent in August from 1.6 percent and 4.3 percent in July. However, slower annual price increases were observed in corn, 3.1 percent from 6.3 percent; cereal preparations, 8.2 percent from 8.9 percent; dairy products, 8.3 percent from 10.0 percent; eggs, 3.9 percent from 4.6 percent; and miscellaneous food items, 7.2 percent from 7.4 percent. Annual movement in the price of fish at 6.2 percent was similar with that registered in July.
The annual price gain in rice was observed at 8.0 percent in August from 7.9 percent in July as seven regions posted higher rates. The biggest uptick of 3.7 percentage points (18.2 percent from 14.5 percent) was seen in MIMAROPA followed by Central Visayas at 2.3 percentage points (6.4 percent from 4.1 percent).
l By Region, Month-on-Month
Compared with July 2005, upward price adjustments in NCR decelerated to 0.2 percent in August from 1.1 percent in July as prices of the heavily weighted FBT items had a composite zero growth from 0.8 percent. Moreover, add-ons in the prices of H&R items and services items also slowed down to 0.3 percent and 0.6 percent from their respective previous month’s rates of 0.8 percent and 2.7 percent. On the other hand, prices of FLW items went up to 0.4 percent from a negative rate of 0.4 percent while increases in the prices of clothing and miscellaneous items still remained at 0.2 percent.
The month-on-month inflation in AONCR at 0.5 percent in August was slower than 0.7 percent in July. Upward adjustments in the prices of clothing items eased to 0.2 percent from 0.3 percent; FLW items, 0.3 percent from 1.5 percent; and services items, 0.9 percent from 1.7 percent. Meanwhile, prices of miscellaneous items slightly rose to 0.3 percent from 0.2 percent. Price hikes of FBT and H&R items were still at 0.6 percent and 0.2 percent, respectively. The lowest month-on-month inflation at 0.1 percent was noticed in Southern Mindanao while the highest rate of 0.9 percent was seen in Eastern Visayas, Western Mindanao and Central Mindanao.
l By Commodity Group, Month-on-Month
Compared with July 2005, movements in the general level of consumer prices slowed to 0.5 percent in August from 0.9 percent. Slower upward adjustments were noted in the prices of FBT items, 0.4 percent from 0.6 percent; H&R items, 0.2 percent from 0.5 percent; FLW items, 0.4 percent from 0.8 percent; and services items, 0.7 percent from 2.1 percent. However, prices of miscellaneous items slightly went up to 0.3 percent from 0.2 percent while that for clothing items was still at 0.2 percent.
Increases in the prices of selected fruits not in season were noted during the month in NCR. In addition, the continuous rains experienced during the first half of the month that caused slight delays of moving vegetables from production areas to wet markets in NCR raised prices of vegetables in the area. All these factors pushed up the index of fruits and vegetables in NCR to 2.9 percent from -1.1 percent. Likewise, the group’s index in AONCR and in the Philippines also moved upward by 1.6 percent and 1.9 percent from 1.3 percent and 0.7 percent, respectively.
The lean month of August advanced the price of rice in AONCR by 1.2 percent from 1.1 percent. Seven regions posted higher price increments. Meanwhile, its price in NCR dropped by only 0.1 percent from a 0.1 percent growth last month. Hence, the growth in the index at the national level still remained at 1.0 percent.
Add-ons in the prices of cooking oil, margarine, coffee and some spices and seasonings in selected regions including NCR caused a 0.4 percent uptick in the miscellaneous foods index in the Philippines, 0.2 percent in NCR and 0.5 percent in AONCR.
The rains apparently did not affect fishing operations during the month. Thus, prices of fish in NCR and at the national level went down by 2.9 percent and 0.4 percent, respectively. In AONCR, it picked up by only 0.2 percent.
The price of corn respectively declined by 2.1 percent and 2.2 percent in the Philippines and AONCR due to abundant supply brought about by the harvest season.
The index for cereal preparations in the Philippines and AONCR rose by 0.4 percent and NCR, 0.3 percent. This was due to the upward adjustments in the prices of flour, bread, biscuits and noodles during the month.
Higher prices of chicken, beef, pork and selected processed meat slightly raised the meat index in the Philippines and AONCR by 0.1 percent and 0.2 percent. On the other hand, the low consumer’s demand for chicken in NCR brought down its index by 0.4 percent. Reductions in the prices of pork and selected processed meat products in the area were also observed during the month.
A series of price hikes in gasoline, diesel and engine oil due to higher world market prices of petroleum products were still noticed during the month. Moreover, additions in the prices of medicines and higher charges for some personal, medical and dental services in selected regions were also noted. All these factors contributed to the 0.7 percent growth in the services index of the Philippines; 0.6 percent in NCR; and 0.9 percent in AONCR.
The continued upward adjustments in the prices of LPG and kerosene along with higher electricity rates in selected regions including NCR caused the FLW index in the Philippines and NCR to grow by 0.4 percent and in AONCR, 0.3 percent. Price gains in firewood and charcoal also contributed to the uptrend.
Increases in the prices of selected construction materials like cement, plywood, nails, paints and G.I. sheets primarily pushed up the H&R index in the Philippines and AONCR by 0.2 percent and in NCR, 0.3 percent.
NOTE: 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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