Date Released:February 7, 2006
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
JANUARY 2006 AND DECEMBER 2005
Year-on-Year Inflation Rates, All Items |
|||
| January | December | Year-to-date | |
| Philippines | |||
| Headline | 6.7 | 6.6 | 6.7 |
| Core | 5.5 | 5.8 | 5.5 |
| NCR | |||
| Headline | 7.0 | 7.4 | 7.0 |
| AONCR | |||
| Headline | 6.4 | 6.4 | 6.4 |
The year 2006 started off with an annual headline inflation rate in the Philippines of 6.7 percent, higher than the 6.6 percent growth in December 2005. This was effected by the acceleration in the inflation rates of services and miscellaneous items. Inflation in January 2005 was 8.4 percent.
Excluding selected food and energy items, core inflation further slowed down to 5.5 percent in January from 5.8 percent in December.
Inflation rate in the National Capital Region (NCR) decelerated to 7.0 percent in January from 7.4 percent in December mainly due to the 8.1 percentage points decline (11.0% from 19.1%) in the annual rate of fuel, light and water (FLW).
Areas Outside the National Capital Region (AONCR) retained its previous month’s inflation rate of 6.4 percent. The slower annual inflation recorded in FBT, clothing and H&R offsetted the higher annual rate in FLW.
Month-on-Month Inflation Rates, All Items |
||
| January | December | |
| Philippines | 0.7 | 0.3 |
| NCR | 0.7 | 0.5 |
| AONCR | 0.6 | 0.2 |
The 0.7 percent increment in the general level of consumer prices was mainly brought about by the 0.7 percent growth in the prices of food items particularly flour and flour products, eggs, fish, selected fruits and vegetables, meat and sugar. Moreover, higher electricity rates and increased charges for selected medical, dental and personal services registered in many regions including NCR were also noticed during the month. Upward adjustments in rental rates in NCR also contributed to the uptrend.
CONSUMER PRICE
INDEX
(2000=100)
JANUARY 2006
l By Region, Year-on-Year
The inflation rate in NCR slowed down to 7.0 percent in January from 7.4 percent in December.
On an annual basis, inflation in AONCR still remained at 6.4 percent in January. Seven regions posted higher annual inflation rates while six regions had lower rates. The biggest increment of 0.4 percentage point was noticed in CALABARZON, Bicol, Northern Mindanao and Southern Mindanao. The highest rate was still recorded in ARMM at 8.7 percent while the lowest inflation was noted in Central Luzon at 5.3 percent.
l By Commodity Group, Year-on-Year
Compared to a year ago, prices of services and miscellaneous items correspondingly climbed to 10.3 percent and 3.1 percent in January from their respective last month’s rates of 10.1 percent and 3.0 percent. On the other hand, the annual price increases of clothing and FLW items slowed to 3.0 percent and 13.5 percent from 3.1 percent and 14.8 percent. Inflation for FBT and H&R were still at 5.6 percent and 4.2 percent, respectively.
The inflation rate for food alone in the Philippines remained at its December rate of 5.6 percent.
Higher annual price additions were recorded in eggs, 4.2 percent in January from 3.6 percent in December; fish, 5.1 percent from 4.7 percent; and fruits and vegetables, 5.0 percent from 3.0 percent. Meanwhile, a slower pace of annual increment was seen in rice, 7.6 percent from 8.0 percent; cereal preparations, 6.5 percent from 6.9 percent; dairy products 7.8 percent from 7.9 percent; meat, 2.9 percent from 3.1 percent; and miscellaneous foods, 6.5 percent from 7.1 percent. For three consecutive months, inflation in corn was still posted at -1.5 percent.
In NCR, inflation for FLW decelerated to 11.0 percent in January from 19.1 percent in December. On the contrary, inflation for FBT rose to 4.8 percent from 4.1 percent; services, 11.9 percent from 11.3 percent; and miscellaneous items, 2.8 percent from 2.6 percent while clothing and H&R maintained their last month’s rates of 1.6 percent and 6.4 percent.
Inflation for food alone in NCR moved upward by 4.7 percent in January from 3.9 percent in December.
Measured from a year ago, the price of rice grew by 5.1 percent in January from 4.9 percent in December; corn, 3.0 percent from 2.8 percent; eggs, 2.7 percent from 1.7 percent; fish, 3.2 percent from 2.1 percent; fruits and vegetables, 1.4 percent from -2.8 percent; and meat, 2.7 percent from 2.1 percent. Meanwhile, inflation for cereal preparations and dairy products were correspondingly slower at 6.4 percent and 8.1 percent from 7.0 percent and 8.2 percent. Miscellaneous foods retained its last month’s rate of 6.8 percent.
In AONCR, annual inflation rate was higher in FLW items in January at 15.0 percent from 12.6 percent in December. On the other hand, inflation for FBT eased to 5.9 percent from 6.1 percent; clothing. 3.6 percent from 3.7 percent; and H&R, 2.5 percent from 2.6 percent. Inflation for services and miscellaneous items correspondingly remained at 9.4 percent and 3.2 percent.
Inflation for food alone in AONCR further decelerated to 5.9 percent in January from 6.1 percent in December.
Annual price adjustment in corn was still at -1.6 percent in January. In addition, annual increases posted in the prices of cereal preparations was slower at 6.5 percent from 6.8 percent; meat, 3.0 percent from 3.4 percent; and miscellaneous foods, 6.3 percent from 7.3 percent.
Annual price add-on in rice further eased to 8.0 percent from 8.4 percent as twelve regions recorded slower inflation rates. The biggest slowdown of 2.6 percentage points (5.8 percent from 8.4 percent) was noted in Central Mindanao.
Higher annual price adjustment was seen in eggs at 4.6 percent from 4.1 percent; fish, 5.6 percent from 5.4 percent; and fruits and vegetables, 6.1 percent from 4.9 percent. Annual price hike in dairy products was still at 7.7 percent.
l By Region, Month-on-Month
Consumer prices in NCR generally went up to 0.7 percent in January as compared to the 0.5 percent growth in December. This can be primarily attributed to the 2.0 percent price increase of H&R items from 0.2 percent last month. Prices of clothing and services items also picked up to 0.2 percent from their respective last month’s rates of 0.1 percent and -0.6 percent; and miscellaneous items, 0.5 percent from 0.2 percent. Meanwhile, prices of FBT and FLW items correspondingly eased to 0.3 percent and 1.0 percent from 0.8 and 3.2 percent.
On a monthly basis, prices in AONCR generally moved up to 0.6 percent in January from 0.2 percent in December. Prices of FBT and miscellaneous items correspondingly advanced to 0.9 percent and 0.3 percent from 0.2 percent; FLW items, 1.7 percent from 1.4 percent; and services items, 0.3 percent from -0.1 percent. On the other hand, price increments of H&R items slowed down to 0.1 percent from 0.2 percent while price gain in clothing items was still at 0.3 percent for four consecutive months. The highest month-on-month inflation at 1.2 percent was in ARMM while the lowest rate of 0.1 percent was registered in CAR and Ilocos.
l By Commodity Group, Month-on-Month
The general level of consumer prices at the beginning of the year saw a higher month-on-month inflation at 0.7 percent from 0.3 percent in December. Prices of the heavily weighted FBT items rose to 0.7 percent in January from 0.3 percent in December; H&R items, 0.9 percent from 0.2 percent; services and miscellaneous items, 0.3 percent from their respective last month’s rates of -0.3 percent and 0.2 percent. On the other hand, upward adjustments in the prices of FLW items were slower at 1.4 percent from 2.1 percent while price additions in clothing items still moved at 0.3 percent.
After the holiday season, consumer’s preference shifted from meat to fish. Thus, the bigger demand for fish products caused their prices to increase. In addition, prices of fish were also up due to limited supply brought about by the difficulty in catching fish that usually settle deep in the waters during the cold months. The corresponding group’s index in the Philippines and AONCR posted higher growth rates of 2.5 percent and 2.2 percent from 0.8 percent and 0.1 percent, respectively, Similarly, the group’s index in NCR also climbed by 3.5 percent. This was however slower than its previous month’s rate of 4.2 percent.
The fruits and vegetables index in NCR declined by -2.0 percent from 1.7 percent last month due to lower prices of fruits in the wet markets particularly grapes, mango, oranges, pineapple and dalanghita. Moreover, the bigger volume of supplies of selected vegetables coming from CAR and Ilocos Region pushed down their prices in the NCR markets by -2.0 percent. On the contrary, higher prices of fruits and vegetables in most of the regions correspondingly raised the group’s index in the Philippines and AONCR by 1.5 percent and 2.5 percent from 0.7 percent and 0.3 percent, respectively.
Price gains in meat and meat products in NCR improved to 0.4 percent from 0.5 percent as consumer demand slowed down after the holiday season. On the other hand, higher price add-ons in meat were correspondingly posted in the Philippines and AONCR at 0.6 percent and 0.8 percent from previous month’s zero growth and -0.2 percent, respectively.
Unstable domestic prices of sugar pulled up its prices in many regions including NCR. This was due to the traders’ speculation and increase in the US quota of sugar for the Philippines after the two hurricanes destroyed its sugar plantation thereby reducing their sugar production. In addition, higher prices of coffee, cooking oil and selected spices and seasonings in some regions including NCR were also observed. All these factors contributed to the 0.3 percent gain in the miscellaneous foods index in the Philippines, 0.1 percent in NCR and 0.4 percent in AONCR.
Uptick in the prices of flour and flour products raised the index for cereal preparations in the Philippines by 0.4 percent; NCR, 0.3 percent and AONCR, 0.5 percent.
The sufficient supply of palay brought about by the harvest season during the last quarter of 2005 pushed down the price of rice in NCR by -0.4 percent. However, the mixed price trends of rice among the regions in AONCR caused a 0.2 percent uptick in its group’s index. The national index was up by 0.1 percent.
With higher rental rates and add-ons in the prices of selected construction materials in NCR, the H&R index in the area went up by 2.0 percent. Similarly, increases in the prices of selected construction materials raised the group’s index up in AONCR by 0.1 percent. Overall, the national index picked up by 0.9 percent.
Upward adjustments in electricity rates primarily effected increments in the FLW indices in the three areas. Higher water rates in NCR and price hike in LPG observed in many regions including NCR also contributed to the uptrend. Thus, the group’s index in the Philippines advanced by 1.4 percent; NCR, 1.0 percent; and AONCR, 1.7 percent.
Additions in the prices of diesel and gasoline along with the higher charges for selected medical, dental and personal services registered in many regions including NCR caused the services indices in the Philippines and AONCR to move upward by 0.3 percent and in NCR, 0.2 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, email address: r.staana@census.gov.ph).
| (Sgd.) CARMELITA
N. ERICTA Administrator |
Source: National Statistics Office
Manila,
Philippines
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