Date Released: January 8, 2008
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
DECEMBER AND NOVEMBER 2007
Year-on-Year Inflation Rates, All Items |
|||
| December | November | Year-to-date | |
| Philippines | |||
| Headline | 3.9 | 3.2 | 2.8 |
| Core | 2.6 | 2.3 | 2.8 |
| NCR | |||
| Headline | 3.5 | 2.6 | 2.6 |
| AONCR | |||
| Headline | 4.2 | 3.5r | 2.8 |
The Philippines’ year-on-year headline inflation rate increased to 3.9 percent in December from 3.2 percent in November. This was effected by the acceleration in the annual inflation rates of food, beverages and tobacco (FBT), fuel, light and water (FLW) and services. Inflation a year ago was 4.3 percent.
The average annual headline inflation rate in the Philippines for the year 2007 was 2.8 percent, slower by 3.4 percentage points than the 6.2 percent in 2006.
Likewise, inflation rate in the National Capital Region (NCR) picked up to 3.5 percent in December from 2.6 percent in November due to the upward movements in the rates of FBT, FLW and services. The annual average inflation in the area for 2007 was 2.6 percent compared to 7.0 percent posted a year ago.
Inflation rate in Areas Outside the National Capital Region (AONCR) further went up to 4.2 percent in December from 3.5 percent in November as higher rates were recorded in all the commodity groups except for clothing and housing and repairs (H&R). Average inflation for the year at 2.8 percent was slower than the 6.0 percent in 2006.
Excluding selected food and energy items, core inflation picked up to 2.6 percent in December from 2.3 percent in November. The annual average core inflation rate was 2.8 percent in 2007, lower than the 5.5 percent in 2006.
Month-on-Month Inflation Rates, All Items
December November Philippines 0.8 0.6 NCR 1.0 0.4 AONCR 0.7 0.8r
Consumer prices generally went up by 0.8 percent in December from 0.6 percent in November. This can be attributed to the upward adjustments in the prices of food items specifically rice, milk and milk products, eggs, fruits and vegetables. The price hikes in LPG, kerosene, firewood and charcoal in most of the regions along with higher electricity rates in selected regions including NCR also contributed to the uptrend.
The inflation rate in NCR rose to 3.5 percent in December from 2.6 percent in November.
Inflation in AONCR increased to 4.2 percent in December from 3.5 percent in November. Higher annual inflation rates were registered in the regions with the biggest jump of 1.4 percentage points posted in Caraga (4.5% from 3.0%). The highest inflation rate was still noticed in Autonomous Region in Muslim Mindanao (ARMM) at 6.4 percent while the lowest rate was in Central Visayas at 3.2 percent.
Among the regions in AONCR, the highest annual average inflation rate at 5.0 percent was posted in ARMM while Cordillera Administrative Region (CAR) registered the lowest annual average inflation for the year 2007 at 1.9 percent.
Higher annual price increments were noted in FBT items at 4.8 percent in December from 3.9 percent in November; FLW items, 5.3 percent from 2.3 percent; and services items, 4.9 percent from 4.4 percent. On the other hand, annual price additions in clothing items were slower at 1.6 percent from 1.9 percent while annual price gains in H&R and miscellaneous items correspondingly remained at 1.1 percent and 1.3 percent.
The annual inflation rate for food alone at the national level picked up to 5.0 percent in December from 4.0 percent in November.
All the food groups recorded higher annual inflation rates in December except for corn whose annual price increase was slower at 2.4 percent from 3.1 percent. Annual price adjustment in rice was higher at 7.2 percent in December from 7.0 percent in November; cereal preparations, 5.2 percent from 4.5 percent; dairy products, 8.5 percent from 7.5 percent; eggs, 7.7 percent from 7.5 percent; fish, 4.6 percent from 3.7 percent; fruits and vegetables, 7.5 percent from 1.7 percent; meat, 2.8 percent from 2.5 percent; and miscellaneous foods, 2.9 percent from 2.7 percent.
The annual average inflation for food alone in 2007 was 3.3 percent, slower than the 5.5 percent growth in 2006.
In NCR, inflation for FBT moved up at a faster pace of 4.7 percent in December from 3.5 percent in November; FLW, 0.7 percent from -1.8 percent; and services, 6.4 percent from 5.3 percent. Meanwhile, slower rates of annual price gains were correspondingly seen in clothing and miscellaneous items at 1.2 percent and 0.7 percent from their respective previous month’s rates of 1.6 percent and 0.9 percent. Annual price hikes in H&R items remained at 0.8 percent.
Inflation rate for food alone in NCR climbed to 4.9 percent in December from 3.7 percent in November.
Measured from a year ago, all the food groups posted higher annual price gains except for miscellaneous foods whose annual rate slowed to 2.2 percent from 2.5 percent. The price of rice advanced by 10.6 percent in December from 10.5 percent in November; corn, 16.9 percent from 15.0 percent; cereal preparations, 5.6 percent from 4.6 percent; dairy products, 6.9 percent from 5.9 percent; eggs, 9.3 percent from 8.4 percent; fish, 2.6 percent from 1.4 percent; fruits and vegetables, 9.6 percent from 1.3 percent; and meat, 3.2 percent from 2.9 percent.
The annual average inflation rate of the group at 3.3 percent in 2007 was lower by 2.4 percentage points from the 5.7 percent in 2006.
In AONCR, inflation for FBT rose to 4.9 percent in December from 4.0 percent in November; FLW, 7.8 percent from 4.6 percent; services, 4.2 percent from 3.8 percent; and miscellaneous items, 1.6 percent from 1.4 percent. Inflation rate for clothing was however slower at 1.8 percent from 1.9 percent. For five consecutive months, the H&R index moved at 1.4 percent.
Prices of food items on an annual basis grew to 5.0 percent in December from 4.0 percent in November.
Annual price addition in rice was at 6.7 percent in December from 6.5 percent in November as twelve regions recorded higher annual rates. The biggest uptick of 2.3 percentage points (10.5% from 8.2%) was noticed in Zamboanga Peninsula followed by Eastern Visayas at 1.4 percentage points (5.8% from 4.4%).
Annual price increments were also higher in cereal preparations at 5.1 percent from 4.5 percent; dairy products, 9.1 percent from 8.2 percent; fish, 5.1 percent from 4.3 percent; fruits and vegetables, 6.9 percent from 1.9 percent; meat, 2.5 percent from 2.2 percent; and miscellaneous foods, 3.2 percent from 2.7 percent. On the other hand, the annual price gains in corn and eggs slowed down correspondingly to 2.2 percent and 7.2 percent from their respective last month’s annual growth rates of 2.8 percent and 7.3 percent.
The 2007 average inflation of the food alone group at 3.2 percent was slower by 2.3 percentage points from 5.5 percent in 2006.
The month-on-month inflation in NCR advanced to 1.0 percent in December from 0.4 percent November brought about by the higher rates in the prices of FBT and FLW items. The rates of FBT and FLW items went up correspondingly to 1.6 percent and 2.5 percent from their respective last month’s growth rates of 0.4 percent and 0.9 percent. Moreover, upward price adjustments in clothing and miscellaneous items at 0.1 percent from zero growth also contributed to the uptrend. Price additions were however slower in services items at 0.5 percent from 0.6 percent while that for H&R items remained at its last month’s rate of 0.1 percent.
Prices in AONCR moved up at a slower pace of 0.7 percent from 0.8 percent in November. Price gain in clothing items slightly decelerated to 0.1 percent from 0.2 percent. On the other hand, price uptick in FLW and miscellaneous items were higher at 2.9 percent and 0.2 percent, respectively from their corresponding previous month’s rates of 2.4 percent and 0.1 percent. Price hikes in FBT, H&R and services items correspondingly remained at 0.8 percent, 0.1 percent and 0.4 percent. Compared to last month, eleven regions posted higher monthly growth rates in December.
The highest month-on-month inflation at 1.4 percent was seen in Eastern Visayas while the lowest rate at 0.2 percent was noticed in Central Visayas.
All the regions registered higher monthly rates compared to their corresponding rates last month with the price increases in Mindanao generally faster than those in Luzon and Visayas. Slowdowns in the monthly upward price adjustments were only recorded in Central Luzon, Bicol, Central Visayas and ARMM.
Movements in the general level of consumer prices were higher at 0.8 percent in December from 0.6 percent in November. Price add-ons in FBT items were up by 0.9 percent from 0.7 percent; FLW items, 2.8 percent from 1.9 percent; and miscellaneous items, 0.2 percent from 0.1 percent. However, price gains in clothing and services items correspondingly decelerated to 0.1 percent and 0.4 percent from 0.2 percent and 0.5 percent while those for H&R items remained at 0.1 percent.
Prices of vegetables particularly the “pinakbet” ingredients continued to register price increases. This was brought about by low supply due to the effects of the typhoons that hit some vegetable-producing provinces in Luzon. Imported fruits dominated the fruit markets in NCR. Apples, mandarins, pears and grapes were found abundant in almost fruit stands, keeping the locally grown fruits a second choice to most buyers. This could be partly attributed to the relatively higher prices for seasonal fruits like mango. Thus, the index of fruits and vegetables in the three areas jumped: Philippines, 4.1 percent from 1.8 percent; NCR, 5.8 percent from 0.4 percent; and AONCR, 3.6 percent from 2.3 percent.
Bigger consumer demand for chicken, pork and beef during the holiday season pushed the meat index up by 0.7 percent in the Philippines, 0.9 percent in NCR and 0.6 percent in AONCR. These were however slower than their respective last month’s growth rates of 0.9 percent, 1.4 percent and 0.7 percent.
Higher demand for fish products resulted to price hikes in fish species particularly shrimps, crabs, shells and mollusks. The group’s index increased by 1.6 percent in December from 0.9 percent in November in the Philippines, 3.5 from 0.2 percent in NCR and 1.2 percent from 1.0 percent in AONCR.
Increases in the prices of cooking oil, margarine, coffee, selected spices and seasonings during the month pegged the miscellaneous foods index at a monthly rate of 0.4 percent in the Philippines, 0.6 percent in NCR and 0.3 percent in AONCR. Additions in the prices of meals eaten outside the home in some regions including NCR also contributed to the positive monthly growth rates of their group’s price indices.
Upward adjustments in the prices of flour and flour products in many regions including NCR were still noticed but at a slower rate compared to their last month’s rates. Thus, the cereal preparations index in the Philippines and AONCR correspondingly moved at 0.9 percent and 0.8 percent from 1.3 percent and 1.2 percent, respectively and in NCR, 1.1 percent from 1.4 percent.
With the continued price additions in milk and milk products in most of the regions including NCR, the dairy products index in the Philippines and AONCR further accelerated by 1.1 percent from their corresponding last month’s rates of 0.8 percent and 0.9 percent and in NCR, 1.3 percent from 0.5 percent.
Generally, the price of rice in AONCR and at the national level slightly grew by 0.1 percent. On the contrary, its price in NCR dropped by -0.1 percent.
On the average, prices of LPG, kerosene, charcoal and firewood were notably higher in most of the regions including NCR during the month. Increased electricity rates in NCR and in selected regions were also recorded. Thus, the FLW index in the Philippines accelerated to 2.8 percent from 1.9 percent; NCR, 2.5 percent from 0.9 percent; and in AONCR, 2.9 percent from 2.4 percent.
The continued add-ons in the prices of gasoline, diesel and medicines and the higher charges for selected personal services pulled up the services index in the Philippines and AONCR by 0.4 percent and in NCR, 0.5 percent.
The increase in the H&R index in the three areas was pegged at 0.1 percent during the month. This was due to the prices hikes in selected construction materials generally observed in NCR and in many regions in AONCR. Upward adjustments in the salaries of carpenter, plumber and electrician in selected regions including NCR were also noted.
NOTES:
The second phase CPI survey report from Pangasinan was not received as of January 8, 2008.
Inflation rates for November were revised to include the updated reports on electricity rates from selected provinces.
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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CONSUMER PRICE INDEX
(2000=100)
DECEMBER 2007By Region, Year-on-Year
By Commodity Group, Year-on-Year
By Region, Month-on-Month
By Commodity Group, Month-on-Month