Date Released:March 7, 2006
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
FEBRUARY 2006 AND JANUARY 2006
Year-on-Year Inflation Rates, All Items |
|||
| February | January | Year-to-date | |
| Philippines | |||
| Headline | 7.6 | 6.7 | 7.1 |
| Core | 6.3 | 5.7r | 6.0 |
| NCR | |||
| Headline | 8.5 | 7.4r | 8.0 |
| AONCR | |||
| Headline | 7.1 | 6.5r | 6.4 |
The year-on-year headline inflation rate at the national level advanced by 0.9 percentage point to 7.6 percent in February from 6.7 percent in January as higher inflation rates were posted in all the commodity groups except for housing and repairs (H&R). Inflation a year ago was 8.5 percent.
Excluding selected food and energy items, core inflation picked up to 6.3 percent in February from 5.7 percent in January.
Likewise, inflation rate in the National Capital Region (NCR) jumped by 1.1 percentage points to 8.5 percent in February from 7.4 percent in January due to the upward movements in the inflation rates of all the commodity groups except for H&R.
Inflation in Areas Outside the National Capital Region (AONCR) grew to 7.1 percent in February from 6.5 percent in January brought about by the acceleration in the inflation rates of all the commodity groups except in clothing.
Month-on-Month Inflation Rates, All Items |
||
| February | January | |
| Philippines | 1.0 | 0.7 |
| NCR | 1.2 | 0.7 |
| AONCR | 1.0 | 0.7r |
Compared to a month ago, consumer prices generally moved up by 1.0 percent in February from 0.7 percent growth in January. This was mainly effected by the 1.0 percent increase in the overall prices of the heavily weighted food items, the gains in FLW (fuel, light and water) at 2.9 percent and services at 1.0 percent.
CONSUMER PRICE
INDEX
(2000=100)
FEBRUARY 2006
l By Region, Year-on-Year
The inflation rate in NCR picked up by 1.1 percentage points to 8.5 percent in February from 7.4 percent in January.
Inflation in AONCR rose to 7.1 percent in February from 6.5 percent in January as thirteen regions posted higher annual inflation rates. The biggest jump of 1.7 percentage points was noted in ARMM. The highest rate was still registered in ARMM at 10.4 percent while the lowest inflation was noticed in Western Visayas at 6.2 percent.
l By Commodity Group, Year-on-Year
Higher inflation rates were noted in all the commodity groups except for H&R whose inflation remained at 4.2 percent. Inflation rate for FBT increased to 6.4 percent in February from 5.6 percent in January; clothing, 3.2 percent from 3.0 percent; FLW, 17.1 percent from 13.5 percent; services, 11.7 percent from 11.0 percent; and miscellaneous items, 3.2 percent from 3.1 percent.
The inflation rate for food alone at the national level moved up to 6.4 percent in February from 5.6 percent in January.
Higher annual rates were posted in the prices of rice, 7.7 percent in February from 7.6 percent in January; corn, 2.1 percent from -1.5 percent; eggs, 5.3 percent from 4.2 percent; fruits and vegetables, 8.0 percent from 5.0 percent; meat, 3.4 percent from 2.9 percent; and miscellaneous foods, 8.7 percent from 6.5 percent. On the other hand, inflation for dairy products and fish correspondingly slowed down to 6.4 percent and 5.0 percent from 7.8 percent and 5.1 percent, respectively. Inflation for cereal preparations remained at 6.5 percent.
In NCR, inflation for all the commodity groups moved upward except for H&R whose inflation eased to 6.2 percent from 6.4 percent. Inflation for FBT climbed to 6.2 percent in February from 4.8 percent in January; clothing, 2.0 percent from 1.6 percent; FLW, 15.6 percent from 11.0 percent; services, 14.4 percent from 13.5 percent; and miscellaneous items, 2.9 percent from 2.8 percent.
Inflation for food alone in NCR accelerated to 6.3 percent in February from 4.7 percent in January.
Annual price increases were higher in rice at 5.5 percent in February from 5.1 percent in January; corn, 3.5 percent from 3.0 percent; cereal preparations, 6.8 percent from 6.4 percent; eggs, 5.3 percent from 2.7 percent; fruits and vegetables, 8.2 percent from 1.4 percent; meat, 3.3 percent from 2.7 percent; and miscellaneous foods, 9.7 percent from 6.8 percent. Slower annual rates of increments were correspondingly recorded in the prices of dairy products and fish at 7.0 percent and 1.8 percent from their respective last month’s rates of 8.1 percent and 3.2 percent.
In AONCR, annual inflation rates for all the commodity groups were higher in February except for clothing whose inflation still remained at its previous month’s rate of 3.6 percent. Inflation for FBT advanced to 6.6 percent in February from 5.9 percent in January; H&R, 2.6 percent from 2.5 percent; FLW, 17.9 percent from 15.0 percent; services, 10.2 percent from 9.5 percent; and miscellaneous items, 3.3 percent from 3.2 percent.
Inflation for food alone in AONCR grew to 6.6 percent in February from 5.9 percent in January.
Annual price hikes were higher in corn at 2.0 percent in February from -1.6 percent in January; eggs, 5.3 percent from 4.6 percent; fish, 5.8 percent from 5.6 percent; fruits and vegetables, 7.9 percent from 6.1 percent; meat, 3.4 percent from 3.0 percent; and miscellaneous foods, 8.3 percent from 6.3 percent.
Annual add-ons posted in the prices of cereal preparations and dairy products were slower at 6.4 percent and 6.2 percent from 6.5 percent and 7.7 percent, respectively.
The annual gain in the price of rice remained at 8.0 percent as higher inflation recorded in eight regions offsetted slower annual growth rates registered in seven regions. The biggest jump at 3.9 percentage points (9.8 percent from 5.9 percent) was observed in Central Visayas.
l By Region, Month-on-Month
Prices in NCR generally increased by 1.2 percent in February from 1.0 percent in January primarily brought about by the 1.0 percent growth in the prices of FBT items from 0.3 percent last month and FLW items, 3.5 percent from 1.0 percent. Moreover, prices of clothing items jumped to 0.6 percent in February from 0.2 percent in January. On the other hand, additions in the prices of H&R and services correspondingly slowed to 1.0 percent and 0.9 percent from 2.0 percent and 1.5 percent, respectively. Price gain in miscellaneous items was still at 0.5 percent.
Consumer prices in AONCR generally picked up by 1.0 percent in February from 0.7 percent in January due to higher prices recorded in all the commodity groups. Prices of FBT and services items went up to 1.0 percent in February from their corresponding January rates of 0.9 percent and 0.2 percent; H&R items, 0.5 percent from 0.1 percent; FLW items, 2.4 percent from 1.7 percent; and miscellaneous items, 0.4 percent from 0.3 percent. For five consecutive months, the price increment in clothing items was still at 0.3 percent. The highest month-on-month inflation at 2.0 percent was still in ARMM while the lowest rate of 0.5 percent was registered in Ilocos and MIMAROPA.
l By Commodity Group, Month-on-Month
Higher month-on-month inflation posted in all the commodity groups except for H&R items pushed up the general level of consumer prices by 1.0 percent in February from 0.7 percent in January. Prices of FBT items increased to 1.0 percent in February from 0.7 percent in January; clothing and miscellaneous items, 0.4 percent from 0.3 percent; FLW items, 2.9 percent from 1.4 percent; and services items, 1.0 percent from 0.6 percent. Meanwhile, price additions in H&R items were slower at 0.7 percent from 0.9 percent.
The continued upward adjustments in the prices of sugar mainly pulled up the miscellaneous foods index in the Philippines by 2.3 percent; NCR, 2.9 percent; and AONCR, 2.2 percent. Price additions in meals eaten outside the home, cooking oil and selected spices and seasonings also contributed to the uptrend.
The price increment of rice in the Philippines and AONCR was pegged at 0.7 percent and in NCR, 0.6 percent. Twelve regions in AONCR posted higher price increases in rice during the month.
Sufficient supply of fish lowered its prices in NCR by -1.4 percent. On the contrary, the fish index in AONCR advanced by 1.1 percent due to price hikes of canned, fresh and processed fish. Hence, the national index moved up at 0.6 percent from 2.5 percent.
The floods that occurred during the early part of 2006 affected the supply of corn. This caused prices to rise by 4.0 percent in the Philippines and AONCR and 0.5 percent in NCR.
Upward movements in the prices of flour and flour products raised the index for cereal preparations in the Philippines and AONCR by 0.7 percent and in NCR, 1.1 percent.
The dairy products index in NCR and AONCR correspondingly accelerated to 1.3 percent and 0.9 percent from their respective last month’s rates of 0.2 percent and 0.3 percent. Thus, the overall index picked up to 1.0 percent from 0.3 percent.
Price reductions in selected fruits and vegetables in many regions in AONCR resulted to the 0.2 percent drop in its group’s index from 2.5 percent growth last month. Meanwhile, floods that occurred in the previous months effected significant decreases in supply levels of vegetables in the wet markets in NCR. Selected fruits were also priced higher this month. Thus, the fruits and vegetables index in the area rose by 0.9 percent from -2.0 percent. These offsetting trends caused the national index to post a zero growth from 1.5 percent in the previous month.
Lower consumer demand of fresh meat in NCR pulled down the group’s index in the area by -0.1 percent from 0.4 percent. On the contrary, add-ons in the prices of meat in many regions raised its index by 0.3 percent from 0.8 percent. Hence, the national index for meat slowed down to 0.2 percent from 0.6 percent.
Higher electricity rates posted in all the regions including NCR primarily pushed the FLW index in the Philippines by 2.9 percent; NCR, 3.5 percent; and AONCR, 2.4 percent. Increased water rates in NCR and in selected regions and price hikes in fuel items such as LPG, kerosene, charcoal and firewood observed in most of the regions also added up to the uptick.
The 1.0 percent growth in the services index in Philippines and AONCR was triggered by the increments in the prices of medicines and higher charges for selected medical, dental and personal services in many regions. Moreover, increases in airplane fares due to the implementation of the 12% R-VAT also contributed to the upward movement. Similarly, the services index in NCR rose by 0.9 percent due to price hikes of medicines and selected medical health goods along with increased salary of household help. Higher charges for recreational services in the area such as cable subscription and video coverage were also noticed during the month.
Price gains in selected construction materials in all the regions including NCR along with higher rental rates recorded in some regions pulled up the H&R index in the Philippines by 0.7 percent; NCR, 1.0 percent; and AONCR, 0.5 percent.
NOTES:
Revisions from November 2005 to January 2006 series were due to the inclusion of the 10% VAT in the airplane fares that were not incorporated in the computation. It was only learned upon verification from the sample outlets that the VAT was not included in the domestic rate sheets sent to NSO.
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
Page last updated: March 7, 2006