Date Released: October 5, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
SEPTEMBER AND AUGUST 2007
Year-on-Year Inflation Rates, All Items |
|||
| September | August | Year-to-date | |
| Philippines | |||
| Headline | 2.7 | 2.4 | 2.6 |
| Core | 2.7 | 2.9 | 2.9 |
| NCR | |||
| Headline | 2.8 | 2.6 | 2.5 |
| AONCR | |||
| Headline | 2.5 | 2.2 | 2.6 |
Year-on-year headline inflation rate in the Philippines picked up to 2.7 percent in September from 2.4 percent in August brought about by higher annual price increments of food, beverages and tobacco (FBT) index and in services items. Inflation a year ago was 5.7 percent.
Inflation rate in the National Capital Region (NCR) went up to 2.8 percent in September from 2.6 percent in August due to the acceleration in the inflation rates of FBT and services.
Inflation rate in Areas Outside the National Capital Region (AONCR) increased to 2.5 percent in September from 2.2 percent in August as the annual inflation rates of FBT and services moved upward.
Excluding selected food and energy items, national core inflation further slowed down to 2.7 percent in September from 2.9 percent in August.
Month-on-Month Inflation Rates, All Items |
||
| September | August | |
| Philippines | 0.1 | 0.1 |
| NCR | -0.2 | 0.0 |
| AONCR | 0.4 | 0.2 |
Lower charges in electricity rates and price reductions in LPG and kerosene in NCR pulled down its monthly inflation rate to -0.2 percent during the month. Meanwhile, upward adjustments in the prices of selected food items such as rice, milk and milk products, eggs, fish, fruits and vegetables in many regions mainly effected the 0.4 percent growth of the consumer prices in AONCR. These mixed price trends resulted to an increase of 0.1 percent in the month-on-month inflation rate in the Philippines.
CONSUMER PRICE
INDEX
(2000=100)
SEPTEMBER 2007
By Region, Year-on-Year
The inflation rate in NCR rose by 0.2 percentage point to 2.8 percent in September from 2.6 percent in August.
Inflation rate in AONCR advanced by 0.3 percentage point to 2.5 percent in September from 2.2 percent in August. Except for CALABARZON and SOCCSKSARGEN, all the regions posted higher annual inflation rates. The biggest jump of 0.7 percentage point was recorded in Ilocos (2.1% from 1.4%), Cagayan Valley (2.0% from 1.3%), Central Luzon (2.6% from 1.9%) and Western Visayas (3.1% from 2.4%). The highest annual rate was still observed in Autonomous Region in Muslim Mindanao (ARMM) at 5.3 percent while the lowest was noticed in CAR at 1.7 percent.
By Commodity Group, Year-on-Year
Inflation rates for FBT and services correspondingly accelerated to 3.5 percent and 2.4 percent in September from their respective August rates of 2.5 percent and 1.8 percent. On the other hand, inflation for clothing and fuel, light and water (FLW) correspondingly slowed down to 2.0 percent and 2.3 percent from 2.2 percent and 5.1 percent, respectively. Annual inflation rates for housing and repairs (H&R) and miscellaneous items were still recorded at 1.2 percent and 1.4 percent, respectively.
The inflation rate for food alone at the national level advanced to 3.4 percent in September from 2.5 percent in August.
Higher annual rates were noticed in the index of rice, 6.0 percent in September from 2.6 percent in August; dairy products, 5.9 percent from 5.4 percent; fish, 3.2 percent from 2.1 percent; and fruits and vegetables, 2.5 percent from -0.5 percent. Slower annual price gains were however seen in corn, 3.5 percent from 4.6 percent; eggs, 7.0 percent from 7.2 percent; and meat, 2.8 percent from 3.2 percent. Add-ons in the prices of cereal preparations and miscellaneous foods remained at 3.4 percent and 1.9 percent.
In NCR, inflation rates for FBT and services correspondingly increased to 3.8 percent and 2.6 percent in September from 2.5 percent and 1.5 percent, respectively. On the contrary, inflation rates for clothing and FLW eased to 2.0 percent and 4.5 percent from their respective rates of 2.7 percent and 9.6 percent. Inflation for H&R and miscellaneous items moved at their previous month’s rates of 1.1 percent and 1.2 percent.
Inflation for food alone in NCR picked up to 3.9 percent in September from 2.5 percent in August.
Higher annual rates were noticed in the index of rice, 11.5 percent in September from 3.7 percent in August; corn. 13.6 percent from 12.4 percent; cereal preparations, 3.7 percent from 3.6 percent; dairy products, 5.4 percent from 5.1 percent; fish, 1.2 percent from -1.6 percent; and fruits and vegetables, 1.7 percent from -5.4 percent. Slower annual price additions were however noted in eggs, 8.2% from 9.3%; meat, 4.3% from 5.7%; and miscellaneous foods, 2.4% from 2.8%.
In AONCR, inflation rates for FBT and services correspondingly climbed up to 3.3 percent and 2.2 percent in September from 2.5 percent and 2.0 percent, respectively. On the other hand, inflation for clothing decelerated to 1.9 percent from 2.1 percent; FLW, 1.1 percent from 2.8 percent; and miscellaneous items, 1.4 percent from 1.5 percent. H&R retained its August rate of 1.4 percent.
Inflation rate for food alone in AONCR advanced to 3.3 percent in September from 2.5 percent in August.
Annual price gain in rice was higher at 5.3 percent in September from 2.4 percent in August as all the regions posted faster annual rates. The biggest increase of 4.9 percentage points was seen in Cagayan Valley (4.8% from -0.1%) and MIMAROPA (9.0% from 4.1%).
Higher annual price add-ons were also seen in dairy products, 6.1 percent from 5.4 percent; eggs, 6.7 percent from 6.5 percent; fish, 3.6 percent from 2.9 percent; and fruits and vegetables, 2.8 percent from 1.1 percent. Meanwhile, annual price hikes in corn and cereal preparations were slower at 3.3 percent from their respective last month’s rates of 4.5 percent and 3.4 percent; meat, 2.1 percent from 2.2 percent; and miscellaneous foods, 1.5 percent from 1.6 percent.
By Region, Month-on-Month
Consumer prices in NCR generally went down by -0.2 percent in September from zero growth in August due to the 4.9 percent drop in the prices of FLW items. Moreover, price increases of FBT and services items further slowed down to 0.7 percent and 0.1 percent from 0.8 percent and 0.2 percent, respectively. Price movements in miscellaneous items were recorded at 0.1 percent while those for clothing and H&R items were still posted at zero growth rates.
Prices in AONCR rose by 0.4 percent in September from 0.2 percent. This was primarily brought about by the 0.7 percent gain in the prices of the heavily weighted FBT items. On the contrary, prices of FLW items further decreased by -0.7 percent from -0.1 percent. Price hike in clothing eased to 0.1 percent from 0.2 percent while that of miscellaneous items remained at its August rate of 0.1 percent. Prices of H&R and services items remained stable as their group’s indices posted zero growth rates.
Among the regions, the highest month-on-month inflation of 1.0 percent was noted in MIMAROPA while zero growth was noted in SOCCSKSARGEN.
Compared to August, increases in consumer prices were generally faster in Luzon as the rate of price changes in most of the regions in the island were higher than those in Visayas and Mindanao. In the Visayas, Regions VII and VIII recorded an uptrend in the growth of prices. Except in Zamboanga Peninsula and ARMM, price changes in the other three regions in Mindanao was 0.1 percent with SOCCSKSARGEN having generally stable prices.
By Commodity Group, Month-on-Month
The month-on-month inflation rate at the national level grew by 0.1 percent in September, the same rate registered in August. Prices of FBT items moved upward by 0.7 percent from 0.4 percent. On the other hand, price increments in clothing items were lower at 0.1 percent from 0.2 percent while price increases in services and miscellaneous items were still at 0.1 percent. Prices of FLW items further moved down by -2.3 percent from -1.1 percent while prices of H&R items still recorded a zero growth rate.
The delay in the harvest of palay because of the dry spell that was experienced particularly in the northern part of the country affected rice production. It thereby, limited the supply of commercial rice in the markets. Thus, prices of rice at the national level further accelerated to 2.9 percent in September from 1.1 percent in August; NCR, 7.5 percent from 3.0 percent; and AONCR, 2.2 percent from 0.9 percent.
The series of typhoons experienced last month affected the production of vegetables and its subsequent supply in the markets during the month. In addition, higher prices of fruits not in season were still observed during the period in review. All these factors contributed to the 1.9 percent growth in its national index; 3.4 percent in NCR; and 1.4 percent in AONCR.
Higher prices of milk and milk products correspondingly raised the dairy products index in the Philippines by 0.7 percent; NCR, 0.4 percent; AONCR, 0.8 percent.
The general upward adjustments in the prices of coffee, margarine, cooking oil and selected spices and seasonings pulled up the miscellaneous foods index in the Philippines of 0.2 percent; NCR, 0.3 percent; and in AONCR, 0.1 percent. These were however slower than their corresponding last month’s growth rates of 0.3 percent, 0.5 percent and 0.2 percent.
The good production of corn brought sufficient supply in the markets in selected regions. Thus, its index in the Philippines and AONCR decreased by -0.9 percent from their respective last month’s rates of 0.3 percent and 0.1 percent. In NCR, the price gain in corn also eased to 1.1 percent from 9.1 percent.
The fish index in NCR declined by -0.3 percent due to the abundant supply of aquaculture fish species in the wet markets as the weather conditions experienced during the month favored the production of these fish species. However, increments in the prices of selected fish species in many regions in AONCR raised its group’s index by 0.4 percent from -0.1 percent. Overall, the fish index grew by 0.2 percent from zero growth.
Improved supply of chicken and the sufficient supply of pork and beef in the wet markets in NCR and in selected regions lowered their prices during the month. Hence, the meat index in NCR went down by -1.9 percent from 0.9 percent; AONCR, -0.2 percent from 0.5 percent; and in the Philippines, -0.7 percent from 0.6 percent.
Lower prices of kerosene and LPG along with the reductions in the generation and system loss charges in electricity consumptions in NCR further pulled down its FLW index by -4.9 percent from -2.8 percent. The FLW index in AONCR also dropped by -0.7 percent from -0.1 percent primarily due to the declines in the prices of kerosene and LPG in selected regions. Thus, the national index for FLW decreased by -2.3 percent from -1.1 percent.
Higher prices of medicines and selected medical and health goods brought up the services index in NCR and in the Philippines by 0.1 percent. Meanwhile, prices of services items in AONCR generally remained stable as its group’s index had a zero growth during the month.
Uptick in the prices of selected items for household operations and furnishings and personal care and effects pushed the miscellaneous items index in the three areas by 0.1 percent.
NOTES:
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: October 5, 2007