Date Released: Septembert 5, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
AUGUST AND JULY 2007
Year-on-Year Inflation Rates, All Items |
|||
| August | July | Year-to-date | |
| Philippines | |||
| Headline | 2.4 | 2.6 | 2.6 |
| Core | 2.9 | 3.0 | 2.9 |
| NCR | |||
| Headline | 2.6 | 2.7 | 2.5 |
| AONCR | |||
| Headline | 2.2 | 2.5r | 2.6 |
The year-on-year headline inflation rate at the national level slowed down to 2.4 percent in August from 2.6 percent in July due to the slower annual price hikes of all the commodity groups except for clothing. Inflation in August 2006 was 6.3 percent.
Excluding selected food and energy items, core inflation slackened to 2.9 percent in August from 3.0 percent in July.
Likewise, inflation rate in the National Capital Region (NCR) eased to 2.6 percent from 2.7 percent in July mainly brought about by the lower annual increments in the prices of food, beverages and tobacco (FBT) items, housing and repairs (H&R) items and services items.
Inflation rate in Areas Outside the National Capital Region (AONCR) improved to 2.2 percent in August from 2.5 percent in July. Except for clothing, lower annual rates of price additions were posted in all the commodity groups.
Month-on-Month Inflation Rates, All Items |
||
| August | July | |
| Philippines | 0.1 | 0.8 |
| NCR | 0.0 | 1.5 |
| AONCR | 0.2 | 0.4 |
The overall month-on-month inflation rate picked up by 0.1 percent in August, slower than the 0.8 percent growth in July. This was mainly effected by the declines in the electricity rates in NCR and in some regions. Slower price gains observed in selected food and services items also contributed to the downtrend.
CONSUMER PRICE
INDEX
(2000=100)
AUGUST 2007
By Region, Year-on-Year
The annual inflation rate in NCR eased by 0.1 percentage point to 2.6 percent in August from 2.7 percent in July.
Likewise, annual inflation rate in AONCR at 2.2 percent in August was slower than the 2.5 percent growth in July as eleven regions recorded lower inflation rates. The biggest decrease was in Ilocos at 1.0 percentage point (1.4% from 2.4%). The lowest rate was posted in CAR and Cagayan Valley at 1.3 percent while the highest was still in Autonomous Region in Muslim Mindanao (ARMM) at 4.8 percent.
By Commodity Group, Year-on-Year
Slowdowns in the annual inflation rates were registered in all the commodity groups except for clothing whose annual rate was still recorded at 2.2 percent. Inflation for FBT was slower at 2.5 percent in August from 2.8 percent in July; H&R, 1.2 percent from 1.5 percent; FLW, 5.1 percent from 5.3 percent; services, 1.8 percent from 2.1 percent; and miscellaneous items, 1.4 percent from 1.5 percent.
The inflation rate for food alone in the Philippines slid to 2.5 percent in August from 2.8 percent in July.
Annual movement in prices of fruits and vegetables was posted at a negative rate of 0.5 percent in August from 3.2 percent in July. Moreover, the annual price hikes in corn slowed to 4.6 percent from 4.7 percent; cereal preparations, 3.4 percent from 3.6 percent; eggs, 7.2 percent from 8.6 percent; fish, 2.1 percent from 2.5 percent; meat, 3.2 percent from 3.3 percent; and miscellaneous foods, 1.9 percent from 2.0 percent. On the contrary, higher annual price gains were correspondingly recorded in rice and dairy products at 2.6 percent and 5.4 percent from 1.7 percent and 5.1 percent, respectively.
In NCR, inflation rate for FBT decelerated to 2.5 percent in August from 2.8 percent in July; H&R, 1.1 percent from 1.3 percent; and services, 1.5 percent from 1.8 percent. Meanwhile, inflation rates for FLW and miscellaneous items correspondingly picked up to 9.6 percent and 1.2 percent in August from their respective July rates of 7.4 percent and 1.1 percent. Inflation for clothing remained at 2.7 percent.
Inflation for food alone in NCR was slower at 2.5 percent in August from 2.8 percent in July.
Annual price movement was still negative in fish at -1.6 percent in August from -2.4 percent. An annual price reduction was also recorded in fruits and vegetables at -5.4 percent from 1.0 percent. In addition, lower annual price increases were observed in eggs (9.3% from 16.3%) and meat (5.7% from 5.9%). Annual price gains were however higher in rice at 3.7 percent from 0.9 percent; corn, 12.4 percent from 3.0 percent; dairy products, 5.1 percent from 4.4 percent; and miscellaneous foods, 2.8 percent from 2.4 percent. Annual inflation for cereal preparations was at its last month’s rate of 3.6 percent.
In AONCR, annual inflation rate for FBT slackened to 2.5 percent in August from 2.8 percent in July; H&R, 1.4 percent from 1.7 percent; FLW, 2.8 percent from 4.2 percent; services, 2.0 percent from 2.2 percent; and miscellaneous items, 1.5 percent from 1.6 percent. Clothing retained its July rate of 2.1 percent.
Inflation rate for food alone in AONCR at 2.5 percent in August was slower compared to 2.8 percent posted in July.
Annual price adjustment in corn moved slowly at 4.5 percent in August from 4.7 percent in July; cereal preparations, 3.4 percent from 3.6 percent; fish, 3.0 percent from 3.7 percent; fruits and vegetables, 1.1 percent from 3.8 percent; and miscellaneous foods, 1.6 percent from 1.9 percent.
Faster annual price gain in rice was however recorded at 2.4 percent in August from 1.8 percent in July as eleven regions recorded higher annual rates. The biggest jump of 3.2 percentage points (4.3% from 1.1 %) was seen in Western Visayas followed by CAR at 1.6 percentage points (1.2% from -0.4%).
Annual price add-on was also higher in eggs at 6.5 percent from 6.3 percent while annual price movements in dairy products and meat remained at 5.4 percent and 2.2 percent, respectively.
By Region, Month-on-Month
Prices in NCR generally remained stable as the month-on-month inflation rate was zero in August from the 1.5 percent growth in July as offsetting price movements were observed in the rates of the commodity groups. Prices of clothing and H&R items have zero growth rates while those of FLW items decreased to -2.8 percent from 8.7 percent. In addition, prices of the heavily weighted FBT items eased to 0.8 percent from 1.0 percent; and services items, 0.2 percent from 1.2 percent. Prices of miscellaneous items however, picked up to 0.1 percent from zero growth.
The reductions in the prices of FLW items and the slowdowns in the monthly price growth rates of all the other commodity groups except for clothing further pushed down the month-on-month inflation in AONCR to 0.2 percent in August from 0.4 percent in July. Prices of FLW items went down by -0.1 percent from 0.8 percent. Upward adjustments in the prices of FBT items also slid to 0.3 percent from 0.4 percent; miscellaneous items, 0.1 percent from 0.2 percent; H&R items and services items, 0.1 percent from their corresponding last month’s rates of 0.3 percent and 0.4 percent. On the other hand, prices of clothing items rose to 0.2 percent from 0.1 percent.
Among the regions, the lowest rate of -0.1 percent was posted in CALABARZON while the highest month-on-month inflation of 0.7 percent was seen in Western Visayas.
By Commodity Group, Month-on-Month
With the negative rate registered in FLW index and the improved monthly growth rates registered in all the other commodity groups except for clothing, the overall month-on-month inflation rate slowed down to 0.1 percent in August from 0.8 percent in July. Prices of FLW items declined by -1.1 percent from 3.6 percent. Moreover, price gains of the heavily weighted FBT items slipped to 0.4 percent from 0.5 percent; and services and miscellaneous items, 0.1 percent from 0.7 percent and 0.2 percent, respectively. On the contrary, prices of clothing items grew by 0.2 percent from 0.1 percent while prices of H&R items generally remained unchanged as its group’s index had a composite zero growth rate from 0.2 percent.
The entry of typhoons “Chedeng”, “Dodong”, and “Egay” in the country one after the other caused delays in moving vegetables from the production points to wet markets in NCR. This caused prices of vegetables in NCR to climb during the month. Moreover, higher prices of fruits not in season were still noted in NCR. All these factors pushed up the index of fruits and vegetables in the area to 0.9 percent in August from zero growth in July. In AONCR, the sufficient supply of vegetables in selected regions spared by the typhoons resulted to lower vegetable prices. Thus, the index of fruits and vegetables in AONCR declined by -0.4 percent from 1.1 percent. At the national level, the group’s index dropped by -0.1 percent from 0.9 percent.
The dry spell that was experienced in the past months and the lean month of August limited the supply of rice in the markets. Thus, the price of rice correspondingly advanced in the Philippines and AONCR by 1.1 percent and 0.9 percent from 0.3 percent and in NCR, 3.0 percent from 0.5 percent.
Prices of chicken were still higher during the month due to its continued tight supply in the markets. Prices of beef and processed meat were also up in some regions. These factors effected a 0.6 percent growth in the meat index in the Philippines; 0.9 percent in NCR; and 0.5 percent in AONCR.
Uptick in the prices of coffee, margarine, cooking oil and sugar in selected regions resulted to an aggregate increase in the miscellaneous foods index in the Philippines of 0.3 percent; NCR, 0.5 percent; and in AONCR, 0.2 percent. Price hikes of meals eaten outside the home were also noticed in some regions including NCR.
The global warm temperatures pushed up prices of imported raw materials for the manufacture of milk and milk products. Thus, the dairy products index in NCR further grew by 1.1 percent from 0.9 percent. However, price gains in milk and milk products in selected regions were at a slower pace in AONCR and in the country as a whole at 0.6 percent and 0.4 percent from 1.0 percent in July.
The stunted growths of chicken brought about by warm temperatures experienced in the past months resulted to low supply of eggs in some regions including NCR. It pulled up the group’s index in the Philippines and AONCR by 0.8 percent and in NCR, 1.0 percent.
With the price additions in flour and flour products, the index of cereal preparations in the three areas rose to 0.1 percent during the month.
The price of corn in NCR went up by 9.1 percent from 3.0 percent due to its low supply in the market. Likewise, corn prices in AONCR and in the Philippines grew by 0.1 percent and 0.3 percent, respectively.
The stormy weather conditions affected the fishing operations during the month. It limited the supply of fish species in the wet markets in NCR. Thus, the fish index in the area inched up by 0.5 percent from 0.3 percent. On the other hand, reductions in the prices of selected fish species in some regions in AONCR pulled down its group’s index by -0.1 percent. These offsetting trends caused the national index to post a zero growth during the month.
Downward adjustments in the generation and system loss charges in electricity consumptions were noticed in NCR. Declines in the prices of LPG and electricity rates were also recorded in selected regions. Thus, the FLW index in the Philippines dropped by -1.1 percent from 3.6 percent; NCR, -2.8 percent from 8.7 percent; and AONCR, -0.1 percent from 0.8 percent.
The services index moved upward by 0.1 percent in the Philippines and AONCR and 0.2 percent in NCR. This was attributed to the increments in the prices of medicines and some school supplies and higher charges in selected medical and personal services in some regions. Increased airplane fares in selected regions also added to the uptick.
Add-ons in the prices of selected items for household operations and furnishings and personal care and effects caused the miscellaneous items index in the three areas to climb by 0.1 percent.
NOTES:
The second phase survey report from Sultan Kudarat was not received as of September 5, 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).
(Sgd.) CARMELITA N. ERICTA
Administrator
Source: National Statistics Office
Manila, Philippines
Page last updated: September 5, 2007