Date Released: January 5, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
DECEMBER AND NOVEMBER 2006
Year-on-Year Inflation Rates, All Items |
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| December | November | Year-to-date | |
| Philippines | |||
| Headline | 4.3 | 4.7 | 6.2 |
| Core | 4.6 | 4.7 | 5.5 |
| NCR | |||
| Headline | 4.9 | 5.4 | 7.0 |
| AONCR | |||
| Headline | 4.1 | 4.3 | 6.0 |
The country’s year-on-year headline inflation rate further decelerated to 4.3 percent in December from 4.7 percent in November mainly due to the slowdown in the inflation rates of food, beverages and tobacco (FBT) and fuel, light and water (FLW). This was the lowest inflation rate since March 2004 (4.2%). Inflation a year ago was 6.7 percent.
The average annual headline inflation rate at the national level for the year 2006 was 6.2 percent, lower by 1.4 percentage points than 7.6 percent in 2005 and the lowest annual average inflation in two years time.
Excluding selected food and energy items, core inflation slipped to 4.6 percent in December from 4.7 percent in November. The average annual core inflation rate was 5.5 percent in 2006 from 7.0 percent in 2005. The rate was the lowest since 2003 when it was recorded at 3.4 percent.
Likewise, inflation rate in the National Capital Region (NCR) was also slower at 4.9 percent in December from 5.4 percent in November brought about by the downward movements in the rates of FBT, housing and repairs (H&R) and FLW. The average inflation in the area was 7.0 percent in 2006 (lowest since 2004) compared to 8.6 percent in 2005.
Inflation rate in Areas Outside the National Capital Region (AONCR) further improved to 4.1 percent in December from 4.3 percent in November. This can be attributed to the downward trend in the rates of all the commodity groups except for services. The average inflation for the year at 6.0 percent was lower by 1.2 percentage points than the 7.2 percent registered in 2005.
Month-on-Month Inflation Rates, All Items |
||
| December | November | |
| Philippines | 0.1 | 0.1 |
| NCR | 0.1 | 0.2 |
| AONCR | 0.0 | 0.1 |
The overall month-on-month inflation grew by 0.1 percent in December, the same rate posted in November. Higher prices of selected food, clothing and miscellaneous items were offsetted by lower prices of petroleum products and downward adjustments in electricity rates in selected regions.
CONSUMER PRICE
INDEX
(2000=100)
DECEMBER 2006
l By Region, Year-on-Year
The inflation rate in NCR slowed down by 0.5 percentage point to 4.9 percent in December from 5.4 percent in November.
Similarly, annual inflation rate in AONCR further eased to 4.1 percent in December from 4.3 percent in November as lower annual inflation rates were observed in all the regions except in SOCCSKSARGEN. The biggest decline was in ARMM at 0.8 percentage point (6.4% from 7.2%). The lowest rate was still seen in CAR at 2.5 percent while it remained highest in ARMM at 6.4 percent.
Among the regions in AONCR, the highest annual average inflation rate in 2006 was noticed in ARMM at 8.8 percent while Western Visayas posted the lowest annual average inflation at 4.6 percent.
l By Commodity Group, Year-on-Year
Annual price increases in FBT and FLW items were slower at 4.7 percent and 5.4 percent in December compared to their respective November rates of 4.9 percent and 7.7 percent. Meanwhile, annual price gain was higher in clothing at 3.0 percent from 2.9 percent. Annual price increments in H&R, services and miscellaneous items correspondingly remained at 3.7 percent, 4.4 percent and 2.5 percent.
The inflation rate for food alone in the Philippines further decelerated to 4.6 percent in December from 4.8 percent in November.
Slower annual price additions were noted in corn, 9.7 percent in December from 9.8 percent in November; cereal preparations, 5.0 percent from 5.1 percent; dairy products, 5.1 percent from 5.3 percent; eggs, 5.9 percent from 6.0 percent; and fruits and vegetables, 7.3 percent from 9.7 percent. On the other hand, annual inflation rates were correspondingly higher in rice and meat at 1.5 percent and 3.5 percent from 1.4 percent and 3.1 percent, respectively. The annual price hikes on fish and miscellaneous foods remained at their respective last month’s rates of 5.0 percent and 5.8 percent.
The national annual average inflation rate for food alone for the year was 5.5 percent, slower than the 6.5 percent growth in 2005.
In NCR, FBT moved up at a slower pace of 5.1 percent in December from 5.6 percent in November; H&R, 4.3 percent from 4.4 percent; and FLW, 5.6 percent from 9.0 percent. Inflation for clothing and miscellaneous items were however higher at 3.9 percent and 2.6 percent from their corresponding previous month’s rates of 3.4 percent and 2.5 percent. The services index moved at its November rate of 5.4 percent.
The inflation rate for food alone in NCR further slackened to 5.2 percent in December from 5.7 percent in November.
Annual price gain in rice decelerated to 0.6 percent in December from 0.8 percent in November; cereal preparations, 6.0 percent from 6.1 percent; eggs, 10.0 percent from 10.6 percent; fish, 1.7 percent from 3.6 percent; and fruits and vegetables, 5.8 percent from 10.2 percent. Meanwhile, higher annual growth rates were correspondingly noted in dairy products and miscellaneous foods at 6.6 percent and 6.7 percent from 6.5 percent and 6.0 percent, respectively. The annual price adjustments in corn and meat remained at 0.5 percent and 5.5 percent, respectively.
The annual average inflation rate of food alone in NCR was higher at 5.7 percent in 2006 from 4.8 percent in 2005.
In AONCR, inflation rates for all the commodity groups in December further slowed down compared to their corresponding November rates except for services whose annual rate was higher at 3.8 percent from 3.7 percent. Inflation for FBT improved to 4.5 percent from 4.7 percent; clothing, 2.6 percent from 2.8 percent; H&R, 3.1 percent from 3.2 percent; FLW, 5.2 percent from 6.9 percent; and miscellaneous items, 2.5 percent from 2.6 percent.
Inflation for food alone in AONCR eased to 4.5 percent in December from 4.6 percent in November.
On annual basis, increases in the prices of corn was slower at 9.8 percent in December from 10.0 percent in November; cereal preparations and dairy products, 4.5 percent from their respective last month’s rates of 4.8 percent and 4.9 percent; fruits and vegetables, 7.8 percent from 9.5 percent; and miscellaneous foods, 5.4 percent from 5.7 percent. On the contrary, the annual price adjustments on eggs were faster at 4.7 percent from 4.6 percent; fish, 5.7 percent from 5.3 percent; and meat, 2.7 percent from 2.1 percent.
The annual price uptick in rice was higher at 1.7 percent in December from 1.6 percent in November. Six regions recorded higher annual rates with the biggest jump of 2.1 percentage points (3.9% from 1.8%) seen in Central Visayas.
The average annual inflation rate of food alone in AONCR was 5.5 percent in 2006, lower by 1.5 percentage points than its 2005 average rate of 7.0 percent.
l By Region, Month-on-Month
With the series of rollbacks in the prices of petroleum products and a discounted jeepney fare in NCR, the services index in the area further dropped to -0.5 percent in December from -0.4 percent in November. Thus, the aggregate month-on-month inflation rate in NCR slowed down to 0.1 percent in December from 0.2 percent in November. Moreover, slower price increases were observed in H&R items at 0.1 percent from 0.2 percent. On the other hand, prices of FBT items moved upward by 0.4 percent from -0.2 percent; clothing items, 0.5 percent from 0.2 percent; and miscellaneous items, 0.3 percent from 0.2 percent. Prices of FLW items remained stable during the month as it posted a zero growth from 3.1 percent in November. This was primarily effected by the stable electricity rates in the area.
Consumer prices in AONCR generally remained unchanged as it recorded a zero month-on-month inflation rate in December from 0.1 percent in November. Prices of FBT and services items posted zero growth rate from 0.5 percent and -0.3 percent, respectively. Price gains in miscellaneous items improved at 0.1 percent from 0.2 percent. Downward price adjustments were still noted in FLW items as the growth rate of the group’s index was still negative at -0.2 percent from -0.7 percent. Price add-ons in clothing and H&R items correspondingly remained at 0.2 percent and 0.1 percent.
The lowest month-on-month inflation rate at -0.4 percent was observed in CAR while the highest rate was in Cagayan Valley and Central Visayas at 0.2 percent.
l By Commodity Group, Month-on-Month
Prices at the national level picked up by only 0.1 percent in December. Prices of clothing items were higher at 0.3 percent from 0.2 percent in November. However, uptick in the prices of FBT and H&R items slowed to 0.1 percent from their respective last month’s rates of 0.3 percent and 0.2 percent. Prices of FLW and services items correspondingly dropped by -0.1 percent and -0.2 percent from 0.6 percent and -0.4 percent, respectively. Prices of miscellaneous items still moved at its last month’s rate of 0.2 percent.
Typhoon Reming did not push up prices of vegetables in the NCR as the areas hit by the typhoon are not major producers of vegetables. Thus, the sufficient volume of deliveries of vegetables in the various wet markets in NCR lowered its prices in the area. In AONCR, abundant supply in many regions spared by the typhoon resulted to lower vegetable prices. This mainly brought declines in the index of fruits and vegetables in the three areas: Philippines, -1.5 percent from 1.0 percent; NCR, -2.3 percent from -4.1 percent; and AONCR, -1.3 percent from 2.7 percent.
Inclement weather conditions and higher demand for fish products resulted to price hikes in fish species particularly shrimps, crabs, shells and mollusks. The group’s index increased by 0.7 percent percent in December from 0.3 percent in November in the Philippines and 2.3 percent from -0.7 percent in NCR. Prices in AONCR also picked up by 0.4 percent, slower than the 0.5 percent increment last month.
Higher demand for chicken during the holidays primarily pulled up the meat index in the Philippines by 0.4 percent; NCR, 0.6 percent; and AONCR, 0.3 percent. These were however slower than their respective last month’s rates of 0.9 percent, 1.7 percent and 0.6 percent.
With the increased prices of meals eaten outside the home in NCR, the index of miscellaneous foods in the area and at the national level correspondingly rose to 0.8 percent and 0.2 percent from 0.1 percent and -0.1 percent, respectively. However, sugar was still sold at lower prices in all the regions. Thus, the miscellaneous foods index in AONCR still recorded a negative rate of -0.1 percent.
Movements in the H&R index in the three areas were pegged at 0.1 percent during the month as prices of selected construction materials were higher in some regions.
Upward adjustments in the prices of some items for household operations and personal effects raised the miscellaneous items index in the Philippines by 0.2 percent; NCR, 0.3 percent; and AONCR, 0.1 percent.
Higher demand for selected ready-made apparel, footwear and textile fabrics during the holiday seasons pushed up the clothing index in the Philippines by 0.3 percent; NCR, 0.5 percent; and AONCR, 0.2 percent.
The FLW indices in the Philippines and AONCR correspondingly went down by -0.1 percent and -0.2 percent due to the reductions in the electricity rates and the continued decreases in the prices of LPG and kerosene in selected regions. Meanwhile, the FLW index in NCR registered a zero growth from 3.1 percent as charges for electricity consumptions did not move and were at their November rates.
The services index in the NCR and Philippines continued to post negative monthly rates of 0.5 percent and 0.2 percent due to a series of price discounts on selected petroleum products and lower jeepney fare observed in NCR. However, prices of services items in AONCR generally remained stable as the group’s index recorded a zero growth from -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, email address: r.staana@census.gov.ph).
| (Sgd.) CARMELITA
N. ERICTA Administrator |
Source: National Statistics Office
Manila,
Philippines
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