Date Released: July 7, 2009
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
JUNE AND MAY 2009
Year-on-Year Inflation Rates, All Items |
|||
| June | May | Year-to-date | |
| Philippines | |||
| Headline | 1.5 | 3.3 | 5.0 |
| Core | 3.9 | 4.4 | 5.4 |
| NCR | |||
| Headline | -0.1 | 0.8 | 2.4 |
| AONCR | |||
| Headline | 2.2 | 4.2 | 6.0 |
The continued negative movement registered in the fuel, light and water (FLW) index along with the deceleration in the price increments of all the other commodity groups further pushed down the country’s year-on-year headline inflation rate to 1.5 percent in June from 3.3 percent in May. This was the lowest inflation rate since April 1987 (1.0%). Inflation a year ago was 11.4 percent.
Excluding selected food and energy items, core inflation continued to go down to 3.9 percent in June from 4.4 percent in May.
Inflation rate in the National Capital Region (NCR) dropped to -0.1 percent in June from 0.8 percent in May. This was effected by the negative annual price adjustments in the FLW and services index and the slowing down in the annual growth rates for the rest of the commodity groups.
Annual price movements in Areas Outside the National Capital Region (AONCR) likewise went down to 2.2 percent in June from 4.2 in May. This was attributed to the continued negative annual growth rate posted in FLW index along with the downward annual price increases in all the other commodity groups.
Compared with May, the general level of consumer prices moved up at a faster pace of 0.6 percent in June from -0.1 percent due to the increases observed in tuition fees, airplane fares, medical and dental charges and other personal services in several regions including NCR. Upward adjustments in the prices of selected food items such as fruits and vegetables, meat, rice, miscellaneous foods including meals eaten outside, dairy products and cereal preparations were also noted during the month. Price hikes in selected construction materials along with the higher wages for carpenters, electricians, painters and plumbers in some provinces also contributed to the upward trend.
A negative inflation rate was recorded in NCR at -0.1 percent in June from 0.8 percent in May.
Likewise, inflation rate in AONCR further decelerated to 2.2 percent in June from 4.2 percent in May. All the regions posted lower annual inflation rates. The biggest slowdown of 6.3 percentage points (-2.2% from 4.1%) was noted in SOCCSKSARGEN, the same region registering the lowest annual rate. The highest rate was still noticed in Eastern Visayas at 5.5 percent.
Compared to a year ago, prices of food, beverages and tobacco (FBT) items slowed down to 3.1 percent in June from 5.9 percent in May; clothing, 2.5 percent from 2.6 percent; H&R and miscellaneous items, 2.8 percent from 3.1 percent and 2.9 percent, respectively. Meanwhile, the annual movements in the corresponding prices of FLW and services items fell to -5.4 percent and -1.1 percent from their respective last month’s rates of -4.9 percent and 0.4 percent.
The inflation rate for food alone at the national level further went down to 3.0 percent in June from 6.0 percent in May.
The annual price increase in rice and corn correspondingly declined to -0.6 percent and -2.1 percent from 8.4 percent and 7.9 percent, respectively. Moreover, slower rates were observed in the price movements of cereal preparations and dairy products at 6.7 percent from 8.3 percent and 7.1 percent, respectively; eggs, 7.4 percent from 7.6 percent; fish, 4.8 percent from 5.8 percent; fruits and vegetables, 3.9 percent from 6.1 percent; meat, 3.3 percent from 3.8 percent; and miscellaneous foods, 3.1 percent from 3.9 percent.
Negative annual rates of price adjustments in NCR were still posted correspondingly in FLW and services index at -2.9 percent and -6.1 percent in June from their respective last month’s rates of -3.7 percent and -4.3 percent. Similarly, annual inflation for FBT eased to 2.4 percent in June from 3.7 percent in May; clothing, 1.3 percent from 1.4 percent; H&R, 2.5 percent from 2.9 percent; and miscellaneous items, 2.3 percent from 2.4 percent.
Inflation for food alone in NCR at 2.3 percent was also slower than the 3.7 percent growth in May.
A negative annual rate was recorded in the index of rice at -9.7 percent in June from 0.9 percent in May. In addition, lower annual price increments were seen in cereal preparations at 5.6 percent from 7.5 percent; dairy products, 5.5 percent from 6.1 percent; and fruits and vegetables, 5.7 percent from 5.9 percent. However, the annual inflation for corn was higher at 6.0 percent from 0.2 percent; eggs, 8.1 percent from 8.0 percent; fish, 1.9 percent from 0.1 percent; and meat, 2.1 percent from 1.9 percent. The annual price addition in miscellaneous food items remained at its last month’s rate of 4.7 percent.
In AONCR, inflation for FLW index further dropped to -6.6 percent in June from -5.6 percent in May. Inflation for FBT index slid to 3.3 percent from 6.5 percent; clothing and H&R, 3.0 percent from 3.1 percent and 3.3 percent, respectively; services, 2.0 percent from 3.2 percent; and miscellaneous items, 2.9 percent from 3.0 percent.
Annual inflation for food alone in AONCR further decelerated to 3.3 percent in June from 6.7 percent in May as all the food groups recorded slower annual price gains.
Improved annual price increments in rice in all regions resulted to a lower inflation rate in its index in AONCR at 0.8 percent in June from 9.6 percent in May. SOCCSKSARGEN registered the biggest decrease of 25.4 percentage points (-20.2% from 5.2%).
The corn index moved at -2.2 percent in June from 8.0 percent in May. In addition, the annual price hike in cereal preparations eased to 7.1 percent from 8.6 percent; dairy products, 7.1 percent from 7.5 percent; eggs, 7.2 percent from 7.5 percent; fish, 5.5 percent from 7.0 percent; fruits and vegetables, 3.4 percent from 6.2 percent; meat, 3.7 percent from 4.7 percent; and miscellaneous food items, 2.4 percent from 3.6 percent.
On a monthly basis, prices in NCR jumped to 0.6 percent in June compared to the -0.3 percent decline in May. It was mainly due to the 2.7 percent upward price adjustments in services items from -0.1 percent. Moreover, prices of FBT and H&R items correspondingly climbed by 0.4 percent and 0.1 percent from 0.3 percent and zero growth, respectively. On the contrary, a negative rate was still posted in FLW items at 1.7 percent. Meanwhile, the miscellaneous index retained its last month’s rate of 0.1 percent while prices of clothing items remained stable as its group’s index had a zero growth from 0.1 percent.
In AONCR, prices generally went up to 0.6 percent in June from 0.1 percent in May as prices of services items gained 2.3 percent from zero growth. Likewise, price increases in FBT items were higher at 0.2 percent from 0.1 percent; clothing, 0.3 percent from 0.1 percent; and FLW items, 0.7 percent from -0.8 percent. On the other hand, price adjustments in H&R items slowed to 0.3 percent from 0.4 percent while those in miscellaneous items remained at its previous month’s growth rate of 0.2 percent.
In general, higher consumer prices were observed in all the regions except for Northern Mindanao which has the lowest monthly rate of -0.1 percent. The highest monthly rate of 1.0 percent was observed in MIMAROPA.
Compared to the areas in Visayas and Mindanao, price additions were higher in Luzon.
A higher increment in the services index at 2.4 percent from zero growth raised the overall consumer prices by 0.6 percent in June from -0.1 percent in May. This was also effected by the upward adjustments in the prices of the heavily weighted FBT items at 0.3 percent from 0.1 percent; clothing and miscellaneous items, 0.2 percent from 0.1 percent. Price add-on in H&R items remained at its May’s rate of 0.2 percent. Meanwhile, a negative growth rate was still recorded in FLW items at -0.2 percent from -1.9 percent.
Additions in the prices of vegetables were observed in some regions, particularly those which were hit by the recent typhoon. Likewise, prices of selected fruits were up in selected regions. Thus, the fruits and vegetables index in AONCR posted a higher growth rate of 1.4 percent in June from 0.4 percent. In NCR, prices of fruits and vegetables moved upward by 1.3 percent from a 5.6 percent growth last month. At the national level, the index grew by 1.4 percent, slower than the previous month’s 1.5 percent.
The slowing down in the production of chicken raised its prices in the wet markets in selected regions including NCR. In addition, prices of beef, selected processed meat products and canned meat were on the upward trend in some provinces. All these factors pushed up prices of meat in the three areas: Philippines, 0.5 percent from -0.3 percent; NCR, 1.1 percent from -0.9 percent; and AONCR, 0.2 percent from -0.1 percent.
With ten regions registering higher rate of price increment in rice, the index in AONCR and in the Philippines picked up to 0.2 percent from zero growth. In NCR, its index went up but at a slower rate of 0.2 percent from 0.3 percent.
Uptick in the prices of coffee, tea, cocoa, margarine, salt and sugar along with upward movement in the prices of meals eaten outside the home were observed in selected regions. Thus, the miscellaneous index at the national level and in AONCR correspondingly went up to 0.1 percent and 0.2 percent, the same rate posted in May. However, in NCR, the group’s index dropped to -0.1 percent due to price reductions in selected spices and seasonings.
The irregular weather conditions brought about by the global warming favored corn production in some regions. Hence, the index of corn in the Philippines and in AONCR declined by -3.0 percent from their last month’s rate of 0.2 percent. However, prices of corn in NCR accelerated to 5.8 percent from zero growth during the month.
Tuition fee hikes and increased airplane fares in many regions including NCR were noted during the month. Price add-ons in selected school supplies, gasoline, diesel, medicines and some medical and health goods and higher charges for personal services were also recorded. All these factors contributed to the gains in the services index in the Philippines by 2.4 percent; NCR, 2.7 percent; and AONCR, 2.3 percent.
Prices of selected construction materials in NCR were on the uptrend, hence, the H&R index in the area inched up by 0.1 percent from zero growth. In AONCR, the group’s index moved upward but at a slower rate of 0.3 percent from 0.4 percent. All these factors resulted to a 0.2 percent growth in the national index, the same rate recorded last May.
Higher charges in water rates observed in some regions and the continuing upward adjustments in the prices of LPG and kerosene mainly effected the 0.7 percent rise in the FLW index in AONCR. Meanwhile, despite of the higher prices of LPG and kerosene, the FLW index in NCR dropped by -1.7 percent due to lower electricity rates during the month. The national index also reflected a downturn of -0.2 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
Page last updated: July 7, 2009
Month-on-Month Inflation Rates, All Items |
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| June | May | |
| Philippines | 0.6 | -0.1 |
| NCR | 0.6 | -0.3 |
| AONCR | 0.6 | 0.1 |
CONSUMER PRICE INDEX
(2000=100)
JUNE 2009
By Region, Year-on-Year
By Commodity Group, Year-on-Year
By Region, Month-on-Month
By Commodity Group, Month-on-Month