Date Released: June 5, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
MAY AND APRIL 2007
Year-on-Year Inflation Rates, All Items |
|||
| May | April | Year-to-date | |
| Philippines | |||
| Headline | 2.4 | 2.3 | 2.7 |
| Core | 2.6 | 2.6 | 2.9 |
| NCR | |||
| Headline | 2.1 | 2.1 | 2.5 |
| AONCR | |||
| Headline | 2.5 | 2.4 | 2.7 |
The year-on-year headline inflation rate in the Philippines picked up by 0.1 percentage point to 2.4 percent in May from 2.3 percent in April. This was mainly due to the upward movement in the inflation rate for fuel, light and water (FLW) at 4.0 percent from 2.2 percent in April. Inflation a year ago was 6.9 percent.
Excluding selected food and energy items, core inflation remained at 2.6 percent for three consecutive months.
Likewise, an inflation rate of 2.1 percent was retained in the National Capital Region (NCR) for three months now.
Inflation rate in Areas Outside the National Capital Region (AONCR) went up by 0.1 percentage point to 2.5 percent in May from 2.4 percent in April effected by the higher inflation rate in FLW.
Month-on-Month Inflation Rates, All Items |
||
| May | April | |
| Philippines | 0.3 | 0.2 |
| NCR | 0.3 | 0.1 |
| AONCR | 0.3 | 0.2 |
The general level of consumer prices increased to 0.3 percent in May from 0.2 percent in April as selected food items such as meat, rice, fruits and vegetables, flour and flour products and miscellaneous food items such as sugar, coffee, cooking oil, garlic and calamansi were priced higher in some regions during the month. Higher charges for electricity consumptions in NCR and in many regions in AONCR also contributed to the uptrend.
CONSUMER PRICE
INDEX
(2000=100)
MAY 2007
By Region, Year-on-Year
The annual inflation rate in NCR remained at its March and April 2007 rate of 2.1 percent as mixed trends were observed in the movements of the major groups, with FLW registering the biggest increment at 1.7 percentage points (3.4 % from 1.7%).
Inflation rate in AONCR at 2.5 percent in May was higher by 0.1 percentage point from 2.4 percent in April as seven regions recorded higher inflation rates with the biggest growth of 0.3 percentage point observed in Ilocos, Central Luzon, Davao and SOCCSKSARGEN. The highest rate was in ARMM at 4.4 percent while the lowest rate was noticed in Central Visayas at 1.2 percent.
By Commodity Group, Year-on-Year
Inflation rate for FLW moved up to 4.0 percent in May from its April rate of 2.2 percent. However, inflation for FBT slowed to 2.6 percent from 2.8 percent; clothing, 2.5 percent from 2.6 percent; services, 1.9 percent from 2.3 percent; and miscellaneous items, 1.6 percent from 1.7 percent. Inflation for H&R was at its April rate of 1.4 percent.
The inflation rate for food alone eased to 2.6 percent in May from 2.7 percent in April.
Slower annual rate of increments were seen in the prices of rice, 1.5 percent in May from 1.6 percent in April; corn, 3.7 percent from 4.2 percent; dairy products, 3.8 percent from 4.1 percent; fish, 3.1 percent from 3.9 percent; and miscellaneous foods, 2.3 percent from 2.6 percent. Meanwhile, higher annual inflation rate was posted in the price of eggs, 6.3 percent from 5.8 percent; fruits and vegetables, 2.9 percent from 2.3 percent; and meat, 2.7 percent from 1.8 percent. Inflation for cereal preparations remained at its April rate of 3.4 percent.
In NCR, inflation for H&R and FLW correspondingly accelerated to 1.1 percent and 3.4 percent in May from their respective April rates of 1.0 percent and 1.7 percent. However, inflation for clothing and services were slower at 2.8 percent and 1.8 percent, respectively from their last month’s corresponding rates of 3.1 percent and 2.4 percent. FBT and miscellaneous items retained their respective previous month’s rates of 2.8 percent and 1.3 percent.
Inflation for food alone in NCR at 2.8 percent in May was higher than its April rate of 2.7 percent.
Faster annual price hikes were registered in rice at 0.3 percent in May from 0.2 percent in April; eggs, 9.8 percent from 8.9 percent; fruits and vegetables, 1.2 percent from 0.7 percent; and meat, 4.5 percent from 3.0 percent. However, annual add-ons in the prices of cereal preparations improved to 3.3 percent from 3.8 percent; dairy products, 3.8 percent from 4.3 percent; and miscellaneous food items, 3.2 percent from 3.3 percent. Annual price movements in corn and fish remained stable as they posted zero growth during the month.
In AONCR, annual inflation rate for FLW grew to 4.4 percent in May from 2.5 percent in April. On the contrary, inflation rate for FBT and services correspondingly slowed down to 2.6 percent and 1.9 percent from their respective last month’s rates of 2.8 percent and 2.3 percent. Inflation for clothing, H&R and miscellaneous items were still at their previous month’s rates.
Inflation rate for food alone in AONCR was slower at 2.6 percent in May from 2.7 percent in April.
Annual upward adjustment in the price of rice slid to 1.6 percent in May from 1.8 percent in April; corn, 3.7 percent from 4.2 percent; dairy products, 3.8 percent from 4.1 percent; fish, 3.8 percent from 4.3 percent; and miscellaneous foods, 1.9 percent from 2.4 percent. Higher annual price gains were however noted in cereal preparations, 3.4 percent from 3.2 percent; eggs, 5.2 percent from 4.8 percent; fruits and vegetables, 3.3 percent from 2.8 percent; and meat, 1.8 percent from 1.4 percent.
On an annual basis, the price of rice was slower at 1.6 percent in May from 1.8 percent in April as eight regions posted slower rates. The biggest slowdown at 1.9 percentage points (2.2 percent from 4.1 percent) was recorded in Zamboanga Peninsula followed by Western Visayas at 0.9 percentage point (0.6 percent from 1.5 percent).
By Region, Month-on-Month
The month-on-month inflation in NCR recorded at 0.3 percent in May was higher than 0.1 percent in April. Prices of FBT went up by 0.2 percent in May from zero growth in April; H&R, 0.2 percent from 0.1 percent; FLW, 0.3 percent from -0.1 percent; and miscellaneous items, 0.1 percent from zero growth. Add-ons in the prices of services items were still at 0.6 percent while the clothing index had a zero growth.
Prices in AONCR rose by 0.3 percent in May compared to the 0.2 percent in April mainly brought about by the 0.7 percent acceleration in the prices of FLW items. Moreover, prices of clothing and miscellaneous items advanced by 0.2 percent from 0.1 percent. While increments in the prices of FBT items slowed down to 0.2 percent from 0.3 percent, increases in the prices of H&R and services were still registered at 0.1 percent and 0.3 percent, respectively. The highest month-on-month inflation at 0.7 percent was noted in ARMM while the lowest rate at 0.1 percent was observed in Bicol, Zamboanga Peninsula, Northern Mindanao, and Caraga.
By Commodity Group, Month-on-Month
At the national level, the month-on-month inflation rate accelerated to 0.3 percent in May from 0.2 percent in April. Upward adjustments were correspondingly observed in the prices of clothing and FLW at 0.2 percent and 0.6 percent from 0.1 percent. Price increases in FBT, H&R, services and miscellaneous items were still at their last month’s rates.
Price quotation for rice in NCR rose to 0.1 percent in May from -0.1 percent in April. Meanwhile, its price gain in AONCR slowed to 0.4 percent from 0.5 percent as seven regions registered slower rates due to the on- going harvest season of palay in some regions. This caused the national index to move at its previous month’s rate of 0.4 percent.
The observance of the much-concluded election along with the fiestas in selected areas resulting to bigger demand for chicken and pork belly or liempo raised meat prices. These factors pulled up the meat index in the country by 0.8 percent in May from zero growth in April; NCR, 1.5 percent from 0.3 percent; and AONCR, 0.4 percent from -0.1 percent.
Supply lags in some selected fruits and vegetables brought additions in their prices in some regions including NCR during the month. Thus, the fruits and vegetables indices correspondingly posted higher growth rates in the Philippines and AONCR, 0.7 percent and 0.5 percent from -0.2 percent; and NCR, 1.2 percent from -0.6 percent.
Higher prices of corn in the Philippines and in AONCR were recorded. However, the index moved at a slower pace of 0.7 percent compared to 1.0 percent in April. Meanwhile, the price of corn in NCR remained stable as its index continued registering zero growth.
The indices for cereal preparations in the Philippines and AONCR were up by 0.4 percent and 0.5 percent due to price hikes registered in flour, bread and biscuits. Add-ons in the prices of noodles in some regions also contributed to the uptrend. The monthly growth in the group’s index in NCR was still at 0.1 percent.
The fair weather conditions that generally prevailed in the country during the month brought continued good production of eggs. This resulted to adequate supply of eggs in the markets in NCR. Thus the group’s index in the area decreased by -0.1 percent. However, due to high demand, prices of eggs went up at 0.4 percent in AONCR and 0.2 percent in the national level.
The continued upward adjustments in the prices of sugar, coffee cooking oil, margarine, coffee and selected spices and seasonings in some regions effected a 0.2 percent increase in the miscellaneous foods index in AONCR. Meanwhile, movements in the group’s index in the Philippines and NCR were at their last month’s rates.
Price adjustments in milk and milk products were slower during the month. Thus, lower increments were seen in the index of dairy products at 0.2 percent in the three areas.
The favorable weather condition resulted to abundant supply of marine fish species in the markets. This brought down the fish index in the three areas: Philippines, -0.7 percent; NCR, -2.0 percent; and AONCR, -0.3 percent.
Price gains in gasoline, diesel, engine oil, selected medicines, medical and dental charges, and some school supplies posted in many regions contributed to the increases in the services index at 0.4 percent in the Philippines, 0.6 percent in NCR, and 0.3 percent in AONCR.
The FLW index in AONCR climbed by 0.7 percent as prices of kerosene, firewood, LPG and charcoal were up during the month along with the higher electricity charges noted in some regions. Similarly, higher generation and system loss charges in electricity rates in NCR pushed up its index by 0.3 percent. Overall, the national index also advanced by 0.6 percent.
Upward adjustments in the prices of selected construction materials such as cement, plywood, lumber, G.I. sheets, electrical wires, hollow blocks, paints and nails in selected regions pegged a 0.1 percent increase in the H&R index in the Philippines and AONCR and 0.2 percent in NCR.
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: June 5, 2007