Date Released: April 4, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
MARCH AND FEBRUARY 2007
Year-on-Year Inflation Rates, All Items |
|||
| March | February | Year-to-date | |
| Philippines | |||
| Headline | 2.2 | 2.6 | 2.9 |
| Core | 2.6 | 3.0 | 3.2 |
| NCR | |||
| Headline | 2.1 | 2.4 | 2.8 |
| AONCR | |||
| Headline | 2.3 | 2.7 | 2.9 |
The year-on-year headline inflation rate at the national level continued to move at a slower pace of 2.2 percent in March from 2.6 percent in February. Slowdowns in the annual inflation rates of all the commodity groups except for clothing contributed to the downtrend. This was the lowest inflation rate since April 1987 (1.0%). Inflation a year ago was 7.6 percent.
Excluding selected food and energy items, core inflation rate further improved to 2.6 percent in March from 3.0 percent in February.
Similarly, annual inflation rate in the National Capital Region (NCR) was lower by 0.3 percentage point to 2.1 percent in March from 2.4 percent in February. This was due to the slower annual price increments in all the commodity groups except for food, beverages and tobacco (FBT).
Inflation rate in Areas Outside the National Capital Region (AONCR) was also slower at 2.3 percent in March from 2.7 percent in February as the annual increments in the indexes of all the commodity groups except for clothing slowed down.
Month-on-Month Inflation Rates, All Items |
||
| March | February | |
| Philippines | -0.1 | -0.1 |
| NCR | -0.1 | -0.4 |
| AONCR | 0.0 | 0.0 |
The month-on-month inflation rate at the national level dropped by -0.1 percent in March, the same rate registered in February. This was due to the continued price decreases of selected food items such as fish, fruits, vegetables and meat.
CONSUMER PRICE
INDEX
(2000=100)
MARCH 2007
By Region, Year-on-Year
The annual inflation rate in NCR slowed down to 2.1 percent in March from 2.4 percent in February.
Likewise, annual inflation rate in AONCR further eased to 2.3 percent in March from 2.7 percent in February as lower annual inflation rates were recorded in thirteen regions. The biggest decline was in Cagayan Valley at 1.0 percentage point (1.9% from 2.9%). The lowest rate was still posted in CAR at 1.3 percent while it remained highest in ARMM at 4.5 percent.
By Commodity Group, Year-on-Year
The annual inflation rates for all the commodity groups decelerated except for clothing whose inflation was still at 2.7 percent. Inflation for FBT was slower at 2.7 percent in March from 3.0 percent in February; housing and repairs (H&R), 1.4 percent from 2.3 percent; fuel, light and water (FLW), 1.2 percent from 1.5 percent; services, 2.2 percent from 2.4 percent; and miscellaneous items, 1.8 percent from 2.0 percent.
The annual inflation rate for food alone in the Philippines further improved to 2.6 percent in March from 3.0 percent in February.
Slower annual rates were posted in the indexes of corn, 4.9 percent in March from 5.9 percent in February; cereal preparations, 3.7 percent from 4.2 percent; dairy products, 4.1 percent from 4.2 percent; fish, 3.2 percent from 3.4 percent; fruits and vegetables, 1.8 percent from 3.3 percent; meat, 1.8 percent from 2.0 percent; and miscellaneous foods, 2.8 percent from 3.2 percent. Meanwhile, higher annual price increases were correspondingly registered in rice and eggs at 1.6 percent and 5.5 percent from 1.4 percent and 5.2 percent, respectively.
In NCR, inflation rates for all the commodity groups in March further slowed down compared to their corresponding February rates except for FBT whose annual inflation remained at 2.9 percent. Inflation for clothing decelerated to 3.3 percent from 3.7 percent; H&R, 1.0 percent from 1.6 percent; FLW, 1.3 percent from 1.8 percent; services, 2.2 percent from 2.5 percent; and miscellaneous items, 1.4 percent from 1.8 percent.
Annual inflation rate for food alone in NCR continued to move at its February rate of 2.9 percent.
Annual growth rates were correspondingly higher in fish and fruits and vegetables at 2.4 percent and 1.5 percent in March from their respective February rates of 0.8 percent and 0.7 percent. On the other hand, slower annual price gain was noted in rice at 0.4 percent from 0.5 percent; cereal preparations and dairy products, 4.3 percent from 4.9 percent and 5.2 percent, respectively; meat, 2.6 percent from 2.9 percent; and miscellaneous foods, 3.4 percent from 3.6 percent. Price movements in corn and eggs were still at their last month’s rate of zero growth and 8.3 percent, respectively.
In AONCR, downward annual price adjustments were observed in all the commodity groups except for clothing whose inflation rate was higher at 2.5 percent from 2.4 percent. Annual inflation rate for FBT continued to move slower at 2.6 percent in March from 3.0 percent in February; H&R, 1.8 percent from 2.8 percent; FLW, 1.1 percent from 1.3 percent; services, 2.2 percent from 2.4 percent; and miscellaneous items, 1.9 percent from 2.1 percent.
Annual inflation for food alone in AONCR moved up slowly at 2.5 percent in March from 3.0 percent in February.
Lower annual growth rates were noticed in the prices of corn at 4.9 percent in March from 6.1 percent in February; cereal preparations, 3.5 percent from 3.9 percent; fish, 3.4 percent from 4.0 percent; fruits and vegetables, 1.9 percent from 4.1 percent; meat, 1.5 percent from 1.7 percent; and miscellaneous foods, 2.5 percent from 3.0 percent.
On the other hand, the price of rice advanced to 1.8 percent from 1.6 percent as ten regions recorded higher annual rates. The biggest increase of 2.3 percentage points (4.9% from 2.6%) was registered in SOCCSKSARGEN followed by Zamboanga Peninsula at 1.1 percentage point (3.4% from 2.3%).
Faster annual rates were also correspondingly posted in the prices of dairy products and eggs at 4.1 percent and 4.7 percent from 3.8 percent and 4.4 percent, respectively.
By Region, Month-on-Month
With the downward price adjustments of selected food items in NCR, the FBT index in the area dropped by -0.3 percent from -0.9 percent. Thus, the month-on-month inflation rate in NCR decreased to -0.1 percent in March from -0.4 percent in February. However, prices of FLW and services items slightly increased to 0.1 percent from their respective last month’s rates of -0.1 percent and -0.4 percent. Price uptick in clothing and miscellaneous items were still at 0.2 percent and 0.1 percent, respectively. Prices of H&R items remained stable as its index recorded a zero growth from 0.1 percent.
The month-on-month inflation rate in AONCR was still zero for two consecutive months. Prices of FBT items decreased by -0.1 percent from zero growth. However, higher prices were correspondingly noticed in services and miscellaneous items at 0.1 percent and 0.2 percent from -0.2 percent and 0.1 percent, respectively and price increment in clothing items was still at 0.2 percent. Prices of H&R and FLW items posted a zero growth from their corresponding last month’s rates of 0.2 percent and -0.1 percent.
The lowest month-on-month inflation rate at -0.7 percent was registered in Cagayan Valley while the highest rate was still in ARMM at 0.9 percent.
By Commodity Group, Month-on-Month
A 0.2 percent reduction in the prices of FBT items continued to push down the month-on-month inflation rate by -0.1 percent in March. On the contrary, prices of FLW and services items picked up to 0.1 percent growth from -0.1 percent and -0.3 percent, respectively and miscellaneous items, 0.2 percent from 0.1 percent. Clothing items maintained its February increment at 0.2 percent while the price of H&R items remained unchanged as its index had zero growth from 0.2 percent.
The fruit markets were well supplied by tropical and in- season fruits like mangoes and pineapples during the month. Supplies of vegetables were also abundant in the markets. Thus, the index of fruits and vegetables in the Philippines dropped by -2.6 percent from -2.8 percent; NCR, -2.0 percent from -5.6 percent; and AONCR, -2.7 percent from -1.9 percent.
The peak fishing season of tuna and the good catch of fishermen brought about by the prevalence of good weather conditions reduced prices of fresh fish in the wet markets during the month. These resulted to the negative rates posted in the indices of fish in the three areas: Philippines, -0.4 percent from 0.4 percent; NCR, -1.1 percent from 0.2 percent; and AONCR, -0.3 percent from 0.5 percent.
The meat index in the Philippines and AONCR continued to decline at -0.1 percent from their respective last month’s rates of -0.9 percent and -0.4 percent and in NCR, -0.2 percent from -1.8 percent. Abundant supply of chicken and pork in NCR markets and in selected regions brought about the downtrend.
Sufficient supply of rice in NCR markets further pulled down its index by -0.2 percent from -0.1 percent. On the other hand, the rice index AONCR and in the Philippines continued to post positive growth rates of 0.4 percent and 0.3 percent, respectively. Only six regions registered higher price increments as the harvest season have already started in some regions.
Higher prices of milk and milk products pushed up the dairy products index in the Philippines by 1.0 percent; NCR, 0.6 percent; and AONCR, 1.1 percent.
The price of corn in NCR still recorded a zero growth in March. However, prices of corn in the Philippines and AONCR went up by 0.9 percent from 0.6 percent.
The bigger demand for eggs raised the group’s index in the Philippines by 0.7 percent; NCR, 0.4 percent; and AONCR, 0.8 percent.
Additions in the prices of coffee, cooking oil and selected spices and seasonings were noted in some regions. These raised the miscellaneous foods index in the Philippines and AONCR by 0.3 percent and 0.4 percent, respectively from their corresponding February rates of 0.1 percent and 0.2 percent. Meanwhile, in NCR it registered a zero growth during the month.
Upward adjustments in the prices of medicines, magazines and newspapers in selected regions including NCR were observed during the month. Prices of gasoline and diesel were also higher in NCR. These factors primarily pushed the month-on-month inflation rate of the services index in the three areas by 0.1 percent.
Higher electricity rates in NCR and increased charges in electricity and water rates in some provinces in AONCR resulted to a 0.1 percent growth in the FLW index in the area and in the Philippines.
The miscellaneous items index in the Philippines and AONCR went up by 0.2 percent and in NCR, 0.1 percent due to the increases in the prices of selected items for household furnishings and operations and personal care and effects.
Bigger demand for selected ready-made apparel, footwear and textile fabrics during the graduation season caused the clothing index in the three areas to go up 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
Page last updated: April 4, 2007