Date Released: November 7, 2006
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
OCTOBER AND SEPTEMBER 2006
Year-on-Year Inflation Rates, All Items |
|||
| October | September | Year-to-date | |
| Philippines | |||
| Headline | 5.4 | 5.7 | 6.6 |
| Core | 5.1 | 5.0 | 5.8 |
| NCR | |||
| Headline | 5.9 | 6.2 | 7.4 |
| AONCR | |||
| Headline | 5.1 | 5.5r | 6.3 |
The year-on-year headline inflation rate at the national level further decelerated to 5.4 percent in October from 5.7 percent in September. The slower annual inflation rates posted in the indices of the commodity groups except for food beverage and tobacco (FBT) and housing and repairs (H&R) brought about the downtrend. Inflation a year ago was 7.0 percent.
Excluding selected food and energy items, core inflation was higher at 5.1 percent in October from 5.0 percent in September.
Inflation rate in the National Capital Region (NCR) slowed to 5.9 percent in October from 6.2 percent in September due to the downward trend in the rates of fuel, light and water (FLW), services and miscellaneous items.
Inflation in Areas Outside the National Capital Region (AONCR) eased to 5.1 percent in October from 5.6 percent in September due to slower movements in the annual price increments of all the commodity groups except for FBT and H&R.
Month-on-Month Inflation Rates, All Items |
||
| October | September | |
| Philippines | 0.1 | -0.1 |
| NCR | 0.3 | -0.4 |
| AONCR | 0.0 | 0.1r |
Compared with September 2006, the general level of consumer prices increased to 0.1 percent in October from -0.1 percent as selected food items such as vegetables, fish, meat, flour and flour products were priced higher during the month.
CONSUMER PRICE
INDEX
(2000=100)
OCTOBER 2006
l By Region, Year-on-Year
The annual inflation rate in NCR slowed by 0.3 percentage point to 5.9 percent in October from 6.2 percent in September.
Inflation in AONCR also moved at a slower pace of 5.1 percent in October from 5.6 percent in September. Lower annual inflation rates were posted in the regions except in MIMAROPA, Western Visayas, Northern Mindanao and ARMM. The biggest slowdown of 1.3 percentage points was recorded in Davao Region (4.4 percent from 5.7 percent). The lowest inflation rate was noted in CAR at 3.8 percent while the highest rate at 8.7 percent was still registered in ARMM.
l By Commodity Group, Year-on-Year
Compared to a year ago, all commodity groups registered lower rates except for food, beverage and tobacco (FBT) items whose inflation rate was higher at 5.1 percent from 4.9 percent in September, and housing and repairs (H&R) whose inflation rate remained at 3.7 percent. The inflation rate for clothing eased to 3.0 percent in October from 3.1 percent in September; fuel, light and water (FLW), 11.4 percent from 13.4 percent; services, 6.1 percent from 7.7 percent; and miscellaneous items, 2.7 percent from 2.8 percent.
The overall inflation rate for food alone went up by 0.3 percentage point to 5.2 percent in October from 4.9 percent in September.
Higher rates of annual increases were observed in the prices of rice, 1.4 percent in October from 1.2 percent in September; corn, 8.4 percent from 7.2 percent; cereal preparations, 5.6 percent from 5.5 percent; dairy products, 6.0 percent from 5.9 percent; eggs, 6.3 percent from 6.1 percent; fish, 5.8 percent from 5.1 percent; fruits and vegetables, 8.9 percent from 8.2 percent; and meat, 2.2 percent from 1.9 percent. On the other hand, annual price gain in miscellaneous foods was slower at 7.3 percent from 7.8 percent.
In NCR, the annual rate of price additions in FLW was lower at 9.5 percent in October from 12.4 percent in September; services items, 6.7 percent from 8.5 percent; and miscellaneous items, 2.4 percent from 2.6 percent. Meanwhile, inflation for FBT items advanced to 6.2 percent in October from 5.4 percent in September; clothing items, 3.3 percent from 3.2 percent; and H&R items, 4.2 percent from 4.0 percent.
The inflation rate for food alone in NCR accelerated to 6.3 percent in October from 5.6 percent in September.
Annual upward movement was faster in the prices of cereal preparations at 6.6 percent in October from 6.3 percent in September; dairy products, 6.8 percent from 6.5 percent; fish, 5.5 percent from 3.5 percent; fruits and vegetables, 12.8 percent from 7.0 percent; and meat, 3.3 percent from 2.5 percent. On the other hand, annual increments in the prices of eggs and miscellaneous food items correspondingly improved to 11.4 percent and 7.7 percent from 11.9 percent and 8.6 percent, respectively. Annual additions in the prices of rice and corn remained at 0.9 percent 0.5 percent, respectively.
In AONCR, inflation rates for all the commodity groups slowed down in October except for FBT and H&R items whose annual rates were still at their respective last month’s rates of 4.7 percent and 3.3 percent. Inflation for clothing slid to 3.0 percent in October from 3.1 percent in September; FLW, 12.4 percent from 14.0 percent; services, 5.7 percent from 7.3 percent; and miscellaneous items, 2.8 percent from 3.0 percent.
Inflation for food alone in AONCR remained at its September rate of 4.7 percent.
The annual price hike in rice was at 1.4 percent in October from 1.2 percent in September as seven (7) regions observed higher annual rates with the biggest increase of 2.4 percentage points (5.5% from 3.1%) noticed in ARMM. Similarly, annual price increases were seen in corn at 8.5 percent from 7.3 percent; eggs, 4.7 percent from 4.3 percent; and fish, 5.8 percent from 5.4 percent. On the contrary, slower annual price gain was recorded in cereal preparations at 5.2 percent from 5.3 percent; fruits and vegetables, 7.8 percent from 8.6 percent; and miscellaneous food items, 7.2 percent from 7.4 percent. Meanwhile, dairy products and meat retained their previous annual growth rates of 5.7 percent and 1.7 percent, respectively.
l By Region, Month-on-Month
The month-on-month inflation in NCR climbed by 0.3 percent in October from -0.4 percent in September mainly due to the 1.5 percent price hike in FBT items. A 0.2 percent increase in the prices of H&R items from zero growth also contributed to the uptrend. However, movement in prices of clothing items improved to 0.2 percent from 0.7 percent. In addition, prices of FLW items and services items continued to post negative rates of change at -0.5 percent and -1.0 percent in October from their respective rates of -0.3 percent and -0.9 percent in September. Prices of miscellaneous items remained stable as its group’s index registered zero growth during the month.
Compared with September 2006, movement in the general level of consumer prices in AONCR was zero in October. Prices of FBT items and H&R items correspondingly moved up to 0.2 percent and 0.1 percent in October from -0.1 percent and zero growth in September, respectively. On the other hand, price hike in miscellaneous items was slower at 0.1 percent from 0.2 percent. In addition, prices of FLW and services items decelerated to -0.4 percent from 0.9 percent and -0.2 percent, respectively. For four consecutive months, increases in the prices of clothing items were still at 0.2 percent.
The lowest month-on-month rate at -0.4 percent was seen in Davao Region while ARMM had the highest rate at 0.5 percent.
l By Commodity Group, Month-on-Month
Measured from a month ago, prices at the national level rose to 0.1 percent from -0.1 percent in September. This was effected by the increases in the prices of heavily weighted FBT items and H&R items at 0.5 percent and 0.1 percent respectively from their corresponding previous month’s rates of -0.2 percent and zero growth.
The index of fruits and vegetables in the Philippines increased by 3.7 percent from -1.1 percent percent; NCR, 8.6 percent from -3.8 percent percent; and AONCR, 2.2 percent from -0.2 percent. This was caused by the continuous upward movement in the prices of vegetables in most of the regions brought about by the after effects of the typhoon that hit these areas. The price movement was also due to the absence of supply of vegetables coming from Bicol region that was hardly hit by the typhoon.
The stormy weather conditions experienced in NCR and in some provinces in AONCR during the month limited the supply of fish species in the markets. Thus, the fish index grew by 2.0 percent and 0.7 percent from -3.1 percent and -0.3 percent, respectively. Overall, the national index moved up at 0.9 percent from -0.8 percent.
The damage brought by the typhoon Milenyo to the poultry industry in Luzon and some nearby regions raising chicken resulted to some supply gaps. Hence, higher prices of chicken in many regions including NCR mainly pushed up the meat index in the Philippines by 0.4 percent from -0.3 percent; NCR, 1.1 percent from -0.7 percent; and AONCR, 0.1 percent from -0.2 percent. Increased prices of beef and processed meat in selected regions also contributed to the uptrend.
Price additions in flour and flour products observed in some selected regions during the month raised the cereal preparations index in the Philippines and in NCR by 0.5 percent and 0.8 percent respectively from 0.2 percent. Meanwhile, the index in AONCR inched up by 0.3 percent, the same rate last month as uptick in the prices of bread and bread products in some regions were recorded.
The miscellaneous foods index in AONCR rose to 0.4 percent from 0.2 percent as higher prices of meals eaten outside the home in selected regions in AONCR were noted along with those of coffee, cooking oil, sugar and sauces. On the other hand, the group’s index in NCR remained stable as it registered zero growth during the month. On the national level, the index for miscellaneous foods went up by 0.2 percent, slower than the 0.5 percent last month.
The series of price reductions in gasoline and diesel mainly effected a decline in the services index in the three areas: Philippines (-0.6% from -0.5%); NCR (-1.0% from -0.9%); and AONCR (-0.4% from -0.2%). (-0.2% from 0.3%).
Uptick in the prices of selected items for household furnishings and operations and personal effects brought a 0.1 percent increase in the miscellaneous items index in the Philippines, the same rate posted last month. In AONCR, the group’s index gained by 0.1 percent which was however slower than its rate of 0.2 percent in September. The miscellaneous index in NCR remained stable as it recorded zero growth during the month.
Lower price adjustment in kerosene and LPG caused a decline in the FLW index in the three areas: Philippines by -0.4 percent from 0.5 percent; NCR, -0.5 percent from -0.3 percent; and AONCR, -0.4 percent from 0.9 percent.
The clothing index in the Philippines, NCR and AONCR moved at 0.2 percent during the month.
From zero growth, higher prices of selected construction materials in some regions pushed up the H&R index for the Philippines and AONCR by 0.1 percent, and for NCR by 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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