Date Released: March 6, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
FEBRUARY AND JANUARY 2007
Year-on-Year Inflation Rates, All Items |
|||
| February | January | Year-to-date | |
| Philippines | |||
| Headline | 2.6 | 3.9 | 3.2 |
| Core | 3.0 | 3.9 | 3.5 |
| NCR | |||
| Headline | 2.4 | 4.0 | 3.2 |
| AONCR | |||
| Headline | 2.7 | 3.7 | 3.1 |
The year-on-year headline inflation rate in the Philippines further slowed down to 2.6 percent in February from 3.9 percent in January brought about by the slower annual price gains of the commodity groups. This was the lowest inflation rate since December 2002 (2.5%). Inflation a year ago was 7.6 percent.
Excluding selected food and energy items, core inflation rate was also slower at 3.0 percent in February from 3.9 percent in January.
Likewise, annual inflation rate in the National Capital Region (NCR) slowed to 2.4 percent in February from 4.0 percent in January due to downward trends in the annual rates of all the commodity groups.
Inflation rate in Areas Outside the National Capital Region (AONCR) continued to move at a slower pace of 2.7 percent in February from 3.7 percent in January. Annual inflation rates of all the commodity groups decelerated during the month.
Month-on-Month Inflation Rates, All Items |
||
| February | January | |
| Philippines | -0.1 | 0.3 |
| NCR | -0.4 | 0.2 |
| AONCR | 0.0 | 0.3 |
Price decreases in food items such as fruits, vegetables and meat pushed down the overall consumer prices by -0.1 percent in February from 0.3 percent in January. Lower adjustments in electricity rates and reductions in the prices of LPG, kerosene, gasoline and diesel also contributed to the downtrend.
CONSUMER PRICE
INDEX
(2000=100)
FEBRUARY 2007
By Region, Year-on-Year
The annual inflation rate in NCR further slowed down to 2.4 percent in February from 4.0 percent in January.
As all the regions registered lower annual inflation rates, the annual inflation in AONCR moved slowly at a rate of 2.7 percent in February from 3.7 percent in January. The biggest decline of 1.7 percentage points (1.9% from 3.6%) was observed in Central Luzon. The lowest rate was still posted in CAR at 1.4 percent while the highest rate remained in ARMM at 4.5 percent.
By Commodity Group, Year-on-Year
Annual inflation rate for food, beverages and tobacco (FBT) eased to 3.0 percent in February from 4.3 percent in January; clothing, 2.7 percent from 3.0 percent; H&R, 2.3 percent from 2.9 percent; FLW, 1.5 percent from 4.6 percent; services, 2.4 percent from 3.7 percent; and miscellaneous items, 2.0 percent from 2.4 percent.
The overall inflation rate for food alone further improved to 3.0 percent in February from 4.2 percent in January as all the food groups posted slower annual price increases compared to their respective January growth rates.
Measured from a year ago, price addition in rice slid to 1.4 percent in February from 1.8 percent in January; corn, 5.9 percent from 9.5 percent; cereal preparations and dairy products, 4.2 percent from 4.7 percent and 5.0 percent; eggs, 5.2 percent from 5.7 percent; fish, 3.4 percent from 3.5 percent; fruits and vegetables, 3.3 percent from 6.3 percent; meat, 2.0 percent from 3.1 percent; and miscellaneous foods, 3.2 percent from 5.5 percent.
In NCR, annual price increments in all the commodity groups in February further slipped from their corresponding January rates. Inflation for FBT decelerated to 2.9 percent in February from 4.9 percent in January; clothing, 3.7 percent from 4.0 percent; H&R, 1.6 percent from 2.5 percent; FLW, 1.8 percent from 5.5 percent; services, 2.5 percent from 3.9 percent; and miscellaneous items, 1.8 percent from 2.3 percent.
Annual inflation rate for food alone in NCR continued to be slower when compared with previous month’s rate. It was pegged at 2.9 percent in February from its January rate of 5.0 percent.
A slowdown was recorded in the annual price hike in rice at 0.5 percent in February from 1.2 percent in January; cereal preparations, 4.9 percent from 5.9 percent; dairy products, 5.2 percent from 6.5 percent; eggs, 8.3 percent from 9.0 percent; fruits and vegetables, 0.7 percent from 7.7 percent; meat, 2.9 percent from 4.6 percent; and miscellaneous foods, 3.6 percent from 6.6 percent. However, the annual growth rate in fish was higher at 0.8 percent from -0.7 percent while corn posted a zero growth from 0.5 percent.
In AONCR, annual inflation rate for FBT further eased to 3.0 percent in February from 4.0 percent in January; clothing, 2.4 percent from 2.6 percent; H&R, 2.8 percent from 3.1 percent; FLW, 1.3 percent from 4.1 percent; services, 2.4 percent from 3.6 percent; and miscellaneous items, 2.1 percent from 2.4 percent.
A downtrend was still noted in the annual inflation of food alone in AONCR at 3.0 percent in February from 4.0 percent in January.
The annual price uptick in rice was 1.6 percent in February, slower than the 1.8 percent growth in January. Seven regions recorded lower annual inflation with the biggest decline of 2.0 percentage points observed in Central Visayas (-0.1% from 1.9%).
Likewise, annual price add-on in corn decelerated to 6.1 percent in February from 9.7 percent in January; cereal preparations and dairy products, 3.9 percent and 3.8 percent from 4.3 percent; eggs, 4.4 percent from 4.7 percent; fish, 4.0 percent from 4.6 percent; fruits and vegetables, 4.1 percent from 5.8 percent; meat, 1.7 percent from 2.4 percent; and miscellaneous foods, 3.0 percent from 5.0 percent.
By Region, Month-on-Month
Prices in NCR went down by 0.4 percent in February from 0.2 percent in January primarily brought about by a 0.9 percent decrease in the prices of FBT items. Moreover, prices of FLW and services items correspondingly dropped by -0.1 percent and -0.4 percent in February from 0.9 percent and 0.1 percent, respectively. Price hikes were also slower in clothing items at 0.2 percent from 0.4 percent and H&R and miscellaneous items, 0.1 percent from 0.2 percent.
Compared to a month ago, consumer prices in AONCR generally remained stable as it posted a zero month-on-month inflation rate from 0.3 percent growth in January. Prices of FLW and services items correspondingly declined by -0.1 percent and -0.2 percent from 0.6 percent and zero growth, respectively. Price increases in miscellaneous items also eased to 0.1 percent from 0.2 percent. On the other hand, price increments in H&R items were higher at 0.2 percent from 0.1 percent while price additions in clothing items were still at 0.2 percent. Prices of FBT items remained unchanged compared to last month as its index had a zero growth from 0.5 percent.
The lowest month-on-month inflation rate at -0.4 percent was noticed in Central Luzon while the highest rate was in ARMM at 0.7 percent.
By Commodity Group, Month-on-Month
On a monthly basis, the general level of consumer prices went down by -0.1 percent in February from 0.3 percent in January mainly due to the declines in the prices of heavily weighted FBT items at -0.2 percent from 0.4 percent. Moreover, prices of FLW and services items also went down by -0.1 percent and -0.3 percent respectively from their corresponding last month’s rates of 0.7 percent and zero growth. Slower price additions in miscellaneous items at 0.1 percent from 0.2 percent also contributed to the downtrend. Clothing and H&R items maintained their January price increments at 0.2 percent.
Deliveries of fruits and vegetables in the markets proved to be more than the requirements of consumers. Thus, the index of fruits and vegetables in the Philippines dropped by -2.8 percent from 0.5 percent; NCR, -5.6 percent from -0.2 percent; and AONCR, -1.9 percent from 0.7 percent. In addition, sluggish retail trade in NCR allowed prices during the last week of the month to remain at first week’s prices for most indicator vegetables. Favorable weather conditions in major producing provinces in Luzon particularly for the “pinakbet” vegetables noted during the month also contributed to downward price adjustments.
Ample supply of chicken, pork and beef in NCR markets and in some regions during the month pushed down the meat index in the three areas: Philippines, -0.9 percent from 0.3 percent; NCR, -1.8 percent from -0.4 percent; and AONCR, -0.4 percent from 0.5 percent.
With the sufficient supply of rice in NCR markets, the group’s index in the area moved downward by -0.1 percent from 0.2 percent. However, the rice index in AONCR and in the Philippines registered positive growth rates of 0.4 percent and 0.3 percent month as nine regions posted higher rates.
From zero growth in January, prices of corn in the Philippines and AONCR gained by 0.6 percent in February. On the hand, prices of corn in NCR remained unchanged from their last month’s levels. Thus, the index in the area still posted a zero growth this month.
Higher consumer demand for eggs raised the index in the Philippines and AONCR by 0.5 percent and in NCR, 0.2 percent.
The cold mornings and moonlit nights had generally reduced the volume of fish catch this month. This resulted to a 0.4 percent increment in the fish index in the Philippines, 0.2 percent in NCR and 0.5 percent in AONCR. These were however, slower than their last month’s growth rate of 1.1 percent.
Upward adjustments in the prices of milk and milk products raised the dairy products index in the Philippines by 0.3 percent; NCR, 0.1 percent; and AONCR, 0.5 percent.
Rollbacks in the prices of gasoline and diesel during the latter part of the month mainly effected a decline in the services index in the three areas: Philippines and AONCR, -0.3 percent and -0.2 percent from zero growth and NCR, -0.4 percent from 0.1 percent.
The FLW index in the three areas fell by -0.1 percent primarily due to the decreases in the prices of LPG and kerosene in many regions including NCR. Lower charges for electricity rates in selected regions in AONCR also contributed to the slowdown.
Higher prices of some construction materials recorded in selected regions during the month raised the H&R index by 0.2 percent in the Philippines and AONCR and 0.1 percent in NCR.
NOTES:
The first phase survey report from Nueva Vizcaya was not received as of March 6, 2007.
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 6, 2007