Date Released: July 5, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
JUNE AND MAY 2007
Year-on-Year Inflation Rates, All Items |
|||
| June | May | Year-to-date | |
| Philippines | |||
| Headline | 2.3 | 2.4 | 2.6 |
| Core | 2.5 | 2.6 | 2.9 |
| NCR | |||
| Headline | 1.9 | 2.1 | 2.4 |
| AONCR | |||
| Headline | 2.6 | 2.5 | 2.7 |
Year-on-year headline inflation rate at the national level slowed down to 2.3 percent in June from 2.4 percent in May. Two commodity groups recorded lower inflation rates compared to their May rates. Food, beverages and tobacco (FBT) and miscellaneous items retained their previous month’s rates while housing and repairs (H&R) and services had higher rates. Inflation a year ago was 6.7 percent.
Excluding selected food and energy items, core inflation decreased by 0.1 percentage point to 2.5 percent in June from 2.6 percent in May.
Inflation rate in the National Capital Region (NCR) was slower by 0.2 percentage point to 1.9 percent in June from 2.1 percent in May. Lower annual increments in the prices of FBT, fuel, light and water (FLW) and services contributed to the downtrend.
Inflation rate in Areas Outside the National Capital Region (AONCR) was 2.6 percent in June, higher than the 2.5 percent recorded in May.
Month-on-Month Inflation Rates, All Items |
||
| Jun | May | |
| Philippines | 0.6 | 0.3 |
| NCR | 0.8 | 0.3 |
| AONCR | 0.6 | 0.3 |
On a month-on-month basis, prices rose to 0.6 percent in June from 0.3 percent in May. This was due to the upward adjustments in the prices of selected food items such as fruits and vegetables, miscellaneous foods, rice, dairy products, cereal preparations, corn, meat and eggs. Price hikes in services, FLW and H&R items also contributed to the increase.
CONSUMER PRICE
INDEX
(2000=100)
JUNE 2007
By Region, Year-on-Year
A slower inflation rate was registered in NCR at 1.9 percent in June from 2.1 percent in May.
Inflation rate in AONCR moved up by 2.6 percent from its May rate of 2.5 percent. Six regions posted higher inflation rates. The biggest increase of 0.8 percentage point was noticed in Central Visayas. The highest rate was still seen in ARMM at 4.6 percent while the lowest rate was in Cordillera Administrative Region (CAR) at 1.1 percent.
By Commodity Group, Year-on-Year
Clothing and FLW correspondingly moved at slower rates of 2.4 percent and 3.8 percent in June compared with their respective rates of 2.5 percent and 4.0 percent in May. The annual inflation rates for FBT and miscellaneous items remained at 2.6 percent and 1.6 percent, respectively while the inflation of H&R and services correspondingly went up to 1.5 percent and 2.0 percent.
The inflation rate for food alone was at its last month’s rate of 2.6 percent.
Higher rates were observed in the price movements of rice at 1.6 percent in June from 1.5 percent in May; corn, 4.3 percent from 3.7percent; dairy products, 4.3 percent from 3.8 percent; eggs, 6.9 percent from 6.3 percent; and fruits and vegetables, 3.1 percent from 2.9 percent. On the other hand, price gains were slower in cereal preparations at 3.3 percent from 3.4 percent; fish, 2.9 percent from 3.1 percent; and miscellaneous foods, 1.9 percent from 2.3 percent. Meanwhile, annual price adjustment in meat was still at 2.7 percent.
In NCR, inflation for FBT slid to 2.6 percent in June from 2.8 percent in May; FLW, 2.0 percent from 3.4 percent; and services, 1.4 percent from 1.8 percent. However, inflation for H&R moved up to 1.3 percent from 1.1 percent. Inflation for clothing and miscellaneous items correspondingly remained at their last month’s rates of 2.8 percent and 1.3 percent.
Inflation for food alone in NCR went down to 2.6 percent in June from 2.8 percent in May.
Lower annual inflation rates were registered in the prices of cereal preparations, 3.2 percent from 3.3 percent; meat, 4.1 percent from 4.5 percent; and miscellaneous foods, 2.2 percent from 3.2 percent. However, annual add-ons in the prices of rice moved faster at 0.4 percent from 0.3 percent; dairy products, 3.9 percent from 3.8 percent; eggs, 10.4 percent from 9.8 percent; and fruits and vegetables, 4.3 percent from 1.2 percent. A negative annual rate was posted in the prices of fish (-1.7%) from zero growth. Inflation for corn generally remained stable as it posted zero growth during the period.
In AONCR, the annual inflation for clothing slackened to 2.2 percent in June from 2.3 percent in May. On the other hand, inflation rates for FLW and services were higher at 4.7 percent and 2.2 percent, respectively. Last month’s rates were retained in FBT (2.6%) and in H&R and miscellaneous items (1.7%).
Inflation rate for food alone was at 2.6 percent, the same rate noted in May.
Higher increases were posted in the price of rice, 1.7 percent from 1.6 percent; corn, 4.4 percent from 3.7 percent; dairy products, 4.6 percent from 3.8 percent; eggs, 5.7 percent from 5.2 percent; fish, 4.0 percent from 3.8 percent; and meat, 2.0 percent from 1.8 percent. However, slow downs were correspondingly noticed in the annual price additions of fruits and vegetables and miscellaneous foods at 2.8 percent and 1.8 percent from 3.3 percent and 1.9 percent, respectively. The annual growth rate on cereal preparations remained at its last month’s rate of 3.4 percent.
On an annual basis, the price of rice went up at 1.7 percent in June from 1.6 percent in May. Seven regions recorded higher rates. The biggest jump of 1.4 percentage points (2.7 percent from 1.3 percent) was seen in ARMM followed by Northern Mindanao at 1.3 percentage points (3.9 percent from 2.6 percent). The rest of the regions either recorded slower rates or retained their previous month’s rates.
By Region, Month-on-Month
Prices in NCR climbed by 0.8 percent in June compared to May levels. Prices of FBT items went up to 0.5 percent from 0.2 percent; clothing, 0.1 percent from zero growth; FLW, 0.5 percent from 0.3 percent; and services, 2.0 percent from 0.6 percent. While prices of miscellaneous items remained stable as it posted zero growth, movements in the prices of H&R remained at 0.2 percent.
Prices in AONCR picked up by 0.6 percent in June from 0.3 percent in May brought about by the higher rates posted in four commodity groups. The rates of FBT increased by 0.4 percent in June from 0.2 percent in May; H&R, 0.3 percent from 0.1 percent; FLW, 1.0 percent from 0.7 percent; and services, 2.0 percent from 0.3 percent. Price increments in miscellaneous items slowed down to 0.1 percent from 0.2 percent while increases in clothing items remained at 0.2 percent. All regions except Davao Region which retained its May rate, registered higher monthly inflation rates compared to May. The highest month-on-month inflation at 1.2 percent was noticed in Central Visayas while the lowest rate at 0.3 percent was observed in Bicol.
By Commodity Group, Month-on-Month
At the national level, month-on-month inflation rate advanced to 0.6 percent in June from 0.3 percent in May. Upward adjustments were seen in the prices of FBT items at 0.4 percent from 0.2 percent; H&R items, 0.2 percent from 0.1 percent; FLW items, 0.8 percent from 0.6 percent; and services items, 2.0 percent from 0.4 percent. Price add-ons in clothing items slowed to 0.1 percent from 0.2 percent while that for miscellaneous items was still at 0.1 percent.
The price of rice in NCR rose to 0.2 percent in June from 0.1 percent in May. In AONCR, its price grew by 0.5 percent from 0.4 percent last month. Meanwhile, at the national level, its price moved at its last month’s rate of 0.4 percent.
The price add-ons in corn at the national level and AONCR were higher at 1.3 percent from their May’s rate of 0.7 percent due to low production which was inadequate to fill the market requirements. Meanwhile, the price of corn in NCR remained stable as the group’s index continued to post zero growth.
The onset of the rainy season brought higher prices of some fruits and vegetables especially the leafy and tuber/root types of vegetables which are not rain resistant. Likewise, the volume of supply of these vegetables is normally lower during the rainy season. Thus, the group’s index picked up by 1.3 percent in the Philippines, 3.1 percent in NCR and 0.8 percent in AONCR.
The increase in the national index for dairy products at 0.8 percent, NCR, 0.3 percent and in AONCR, 1.1 percent was effected by price gains in selected milk and milk products.
Insufficient supply of eggs brought about by its low production pulled up its prices in the three areas: Philippines, 0.6 percent; NCR, 0.8; and AONCR, 0.5 percent.
Prices of flour, biscuits, bread, noodles and some cereal preparations in AONCR and NCR were up during the review period. Thus, the group’s index in the two areas recorded a growth of 0.6 percent and 0.2 percent, respectively. The national index moved up by 0.4 percent, the same rate registered last month.
Upward movements in the prices of cooking oil, coffee, sugar, garlic, powdered tonic drinks and some spices in NCR pushed up the index for miscellaneous foods in the area and in the Philippines by 0.4 percent and 0.3 percent, respectively. Price additions in miscellaneous foods in AONCR was at 0.2 percent, the same rate registered in May.
Increments in the prices of beef, pork, chicken and selected canned meat products in many regions in AONCR resulted to a 0.2 percent increase in the meat’s index in the area and 0.1 percent in the Philippines. These were however slower than their respective last month’s rates of 0.4 percent and 0.8 percent. Meanwhile, its price in NCR remained stable as it posted zero growth from an increase of 1.5 percent in May.
With the opening of the school year, tuition fee hikes were observed in all the regions including NCR. Rising adjustments in the prices of diesel, gasoline, engine oil, medicines and selected school supplies were also noted during the month. All these factors contributed to increments in the services index at 2.0 percent in the three areas.
Higher electricity rates in NCR and AONCR along with the continued increase in the prices of LPG and kerosene raised the FLW index in the three areas: Philippines, 0.8 percent; NCR, 0.5 percent; and AONCR, 1.0 percent.
Price gains in cement, lumber, sand, paints, G.I sheets, plywood and nails in some regions pushed up the H&R index in the Philippines and in AONCR by 0.2 percent and 0.3 percent, respectively in June from their May rates of 0.1 percent. The H&R index in NCR was up by 0.2 percent, the same rate registered in the previous month.
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: July 5, 2007