Date Released: December 5, 2007
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
NOVEMBER AND OCTOBER 2007
Year-on-Year Inflation Rates, All Items |
|||
| November | October | Year-to-date | |
| Philippines | |||
| Headline | 3.2 | 2.7 | 2.7 |
| Core | 2.3 | 2.4 | 2.8 |
| NCR | |||
| Headline | 2.6 | 2.4 | 2.5 |
| AONCR | |||
| Headline | 3.4 | 2.9 | 2.7 |
Year-on-year headline inflation rate at the national level moved upward to 3.2 percent in November from 2.7 percent in October as the inflation of food, beverages and tobacco (FBT), fuel, light and water (FLW) and services went up. Inflation a year ago was 4.6 percent.
Excluding selected food and energy items, core inflation decreased by 0.1 percentage point to 2.3 percent in November from 2.4 percent in October.
Inflation rate in the National Capital Region (NCR) increased to 2.6 percent in November from 2.4 percent in October. Annual increments in the prices of FBT and services were higher during the month.
Inflation rate in Areas Outside the National Capital Region (AONCR) continued to accelerate as it was recorded at 3.4 percent in November from 2.8 percent in October.
Month-on-Month Inflation Rates, All Items |
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| November | October | |
| Philippines | 0.6 | 0.2 |
| NCR | 0.4 | -0.1 |
| AONCR | 0.7 | 0.4 |
On a month-on-month basis, prices rose by 0.6 percent in November from 0.2 percent in October. This can be attributed to the upward adjustments in the prices of selected food items such as fruits and vegetables, cereal preparations, fish, meat, milk and milk products, and miscellaneous foods such as refined and brown sugar, cooking oil, tonic food drinks and coffee. In addition, higher prices of gasoline, diesel, LPG and kerosene were also noted during the month.
CONSUMER PRICE
INDEX
(2000=100)
NOVEMBER 2007
By Region, Year-on-Year
On annual basis, inflation rate in NCR picked up by 0.2 percentage point to 2.6 percent in November from 2.4 percent in October.
Likewise, inflation rate in AONCR moved up to 3.4 percent in November from its October rate of 2.8 percent as all the regions recorded higher inflation rates. The biggest increase was observed in Autonomous Region in Muslim Mindanao (ARMM) at 1.9 percentage points, the region with the highest rate of 6.2 percent. The lowest rate at 2.5 percent was registered in Cordillera Administrative Region (CAR) and Cagayan Valley.
By Commodity Group, Year-on-Year
Inflation for FBT increased to 3.9 percent in November from 3.5 percent in October; FLW, 2.1 percent from 1.0 percent; and services, 4.4 percent from 3.5 percent. On the other hand, inflation rate for housing and repairs (H&R) and miscellaneous items correspondingly slowed down to 1.1 percent and 1.3 percent from their respective last month’s rates of 1.2 percent and 1.4 percent. Inflation for clothing remained at 1.9 percent.
The inflation rate for food alone was at 4.0 percent, higher than its last month’s rate of 3.5 percent.
Faster annual rate was noticed in the index of rice at 7.0 percent in November from 6.7 percent October; corn, 3.1 percent from 2.7 percent; cereal preparations, 4.5 percent from 3.4 percent; dairy products, 7.5 percent from 6.8 percent; fish, 3.7 percent from 3.1 percent; fruits and vegetables, 1.7 percent from 0.9 percent; and miscellaneous foods, 2.7 percent from 2.1 percent. Meanwhile, annual add-ons in the prices of eggs improved to 7.5 percent from 7.6 percent. The upward movement in the price of meat remained at its October rate of 2.5 percent.
In NCR, inflation for FBT and services correspondingly grew to 3.5 percent and 5.3 percent in November from 2.9 percent and 4.3 percent respectively in October. However, inflation for clothing slid to 1.6 percent in November from 1.8 percent in October; H&R, 0.8 percent from 1.0 percent; and miscellaneous items, 0.9 percent from 1.2 percent. A negative inflation rate was posted in FLW at -1.8 percent from 0.2 percent.
Inflation for food alone in NCR went up to 3.7 percent in November from 2.9 percent in October.
An annual price gain was registered in the index of corn at 15.0 percent in November from 13.5 percent in October; cereal preparations, 4.6 percent from 3.5 percent; dairy products, 5.9 percent from 5.6 percent; fish, 1.4 percent from 0.5 percent; fruits and vegetables, 1.3 percent from -3.3 percent; and miscellaneous food items, 2.5 percent from 2.4 percent. Meanwhile, slower annual price additions were correspondingly noticed in rice, eggs, and meat at 10.5 percent, 8.4 percent, and 2.9 percent from their previous month’s respective rates of 11.1 percent, 8.9 percent, and 3.2 percent.
In AONCR, the annual inflation for FBT accelerated to 4.0 percent in November from 3.6 percent in October; clothing, 1.9 percent from 1.8 percent; FLW, 4.3 percent from 1.3 percent; and services, 3.8 percent from 3.0 percent. However, inflation for miscellaneous items eased to 1.4 percent from 1.5 percent. For four consecutive months, inflation for H&R was still at 1.4 percent.
Inflation rate for food alone picked up to 4.0 percent in November from 3.7 percent in October.
Faster annual price gain in rice was recorded at 6.5 percent in November from 6.1 percent in October as ten regions posted higher rates. The biggest jump of 6.0 percentage points (7.9% from 1.9%) was observed in ARMM followed by Zamboanga Peninsula at 3.0 percentage points (8.2% from 5.2%).
Higher increases were observed in the price index of corn, 2.8 percent from 2.4 percent; cereal preparations, 4.5 percent from 3.5 percent; dairy products, 8.2 percent from 7.4 percent; eggs, 7.3 percent from 7.1 percent; fish, 4.3 percent from 3.8 percent; and miscellaneous foods, 2.7 percent from 1.9 percent. However, a slow down was registered in the annual price additions of fruits and vegetables at 1.9 percent from 2.3 percent. The annual growth rate on meat remained at its last month’s rate of 2.2 percent.
By Region, Month-on-Month
Prices in NCR moved upward to 0.4 percent in November from -0.1 percent in October mainly due to the 0.9 percent price adjustment in FLW items from its previous month’s rate of -4.6 percent. In addition, prices of H&R items climbed by 0.1 percent and services, 0.6 percent. On the contrary, price increases were slower in FBT items at 0.4 percent from 0.6 percent while prices of clothing and miscellaneous items generally remained stable as they posted zero growths.
Prices in AONCR advanced by 0.7 percent in November from 0.4 percent in October brought about by the higher rates seen in three commodity groups. The rate of FBT increased by 0.8 percent in November from 0.5 percent in October; clothing, 0.2 percent from 0.1 percent; and FLW, 2.1 percent from zero growth. Price increments in miscellaneous items slowed down to 0.1 percent from 0.2 percent while uptick in H&R and services items correspondingly remained at 0.1 percent and 0.4 percent, respectively. Eleven regions registered higher monthly inflation rates in November compared to October.
The highest month-on-month inflation at 1.9 percent was noticed in Zamboanga Peninsula while the lowest rate at 0.2 percent was observed in SOCCSKSARGEN.
In general, bigger upward adjustments in the monthly prices were posted in the regions in Mindanao and the Visayas compared to those in Luzon with slowdowns in price gains in CAR and MIMAROPA.
By Commodity Group, Month-on-Month
At the national level, month-on-month inflation rate rose to 0.6 percent in November from 0.2 percent in October. Price additions were seen in FBT items at 0.7 percent from 0.5 percent; clothing items, 0.2 percent from 0.1 percent; and FLW items, 1.7 percent from -1.6 percent. Price add-ons in H&R, services and miscellaneous items remained at their previous month’s rates.
The on-going harvest season of palay in some of the provinces brought adequate supply of rice in the markets. However, price increases were recorded in a few regions thus, these mixed trends resulted to a generally stable index for rice in AONCR. In NCR, the index further declined to -0.6 percent from its last month’s rate of -0.1 percent. The national index thus, dropped by -0.1 percent.
The typhoons that hit Northern Luzon, Southern Tagalog and some parts of Visayas and Mindanao affected the production of vegetables and its subsequent supply in the wet markets. Hence, prices of some vegetables in the area went up during the month. In addition, higher prices of fruits were still observed during the period in review. All these factors resulted to the 2.3 percent increase in the fruits and vegetables index in AONCR and mainly contributed to the 1.8 percent increment in the national index. Some fruits and vegetables in NCR were also priced higher during the month as the group’s index went up by 0.4 percent, but this was slower than its previous month’s rate.
Price hikes in flour, flour products, bread, biscuits and bread products noted in some regions raised the cereal preparations index in the three areas: Philippines, 1.3 percent; NCR, 1.4 percent; and AONCR, 1.2 percent.
The stormy weather conditions experienced in some parts of the country and the cold mornings during the month made it difficult to catch fish thus, there was less supply in the markets. This resulted to costlier prices of selected fish species as the fish index in AONCR picked up by 1.0 percent. Likewise, price mark-ups for dried and canned fish and some seafoods were observed in many regions. In NCR, the group’s index climbed by 0.2 percent, slower than the 1.3 percent uptick last month. The national index grew by 0.9 percent, the same rate registered in November.
The increase in the national index for meat at 0.9 percent, 1.4 percent in NCR, and 0.7 percent in AONCR was effected by the increments in the prices of beef, pork, chicken, and selected processed meat products in many regions including the NCR. Bigger demand for meat in celebration of All Saints’ Day and All Souls’ Day also contributed to the uptrend.
The cost of imported raw materials in the manufacture of milk and milk products continued to go up and this raised the dairy products index in the Philippines by 0.8 percent; NCR, 0.5 percent; AONCR, 0.9 percent.
Higher costs of inputs in the production of corn mainly pushed up prices of corn in the three areas: Philippines, 0.7 percent; NCR, 1.3 percent; and AONCR, 0.7 percent.
The index for miscellaneous foods in the Philippines and AONCR gained 0.5 percent and 0.7 percent respectively, due to upward movements in the prices of cooking oil, coffee, sugar, garlic, powdered tonic drinks and selected spices. Price addition in miscellaneous foods in NCR was at 0.1 percent, same rate registered in October.
Prices of eggs in AONCR went up so that, the group’s index correspondingly rose in the area and in the Philippines by 0.7 percent and 0.2 percent, slower than their last month’s rates of 1.0 percent and 0.7 percent, respectively. The -1.1 percent drop in the group index in NCR was brought about by ample supply of eggs in the markets.
The FLW index in the country jumped by 1.7 percent; NCR, 0.9 percent; and AONCR, 2.1 percent resulting from continued additions in prices of LPG and kerosene. Higher prices of charcoal also contributed to the increase.
Price gains in gasoline, diesel, medicines, selected pharmaceutical products along with upward adjustments in medical and dental charges in some regions were noted hence, the services index registered increments in the three areas: Philippines, 0.5 percent; NCR, 0.6 percent; and AONCR, 0.4 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).
| (Sgd.) CARMELITA N.
ERICTA Administrator |
Source: National Statistics Office
Manila,
Philippines
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