Date Released: August 5, 2009
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
JULY AND JUNE 2009
Year-on-Year Inflation Rates, All Items |
|||
| July | June | Year-to-date | |
| Philippines | |||
| Headline | 0.2 | 1.5 | 4.3 |
| Core | 3.6 | 3.9 | 5.1 |
| NCR | |||
| Headline | -1.0 | -0.1 | 1.9 |
| AONCR | |||
| Headline | 0.7 | 2.2 | 5.2 |
The country’s year-on-year headline inflation rate further decelerated to 0.2 percent in July from 1.5 percent in June. This was mainly due to the continued slowing down in the inflation rate of the heavily weighted food, beverages and tobacco (FBT) index and the declines in the annual price movements of fuel, light and water (FLW) and services index. Moreover, slower annual price increases were observed in all other commodity groups during the month. Inflation a year ago was 12.3 percent.
Excluding selected food and energy items, core inflation at 3.6 percent was still slower than the 3.9 percent in June.
The annual price change in the National Capital Region (NCR) further fell by -1.0 percent in July from -0.1 percent in June as the services and FLW index continued to register negative annual rates. Slowdowns in the annual price increments of FBT, clothing and housing and repairs (H&R) also contributed to the downtrend.
Similarly, the negative annual rates recorded in the FLW and services index and the slowdown in the inflation rates of the rest of commodity groups resulted to a lower growth rate of 0.7 percent in Areas Outside the National Capital Region (AONCR).
Measured from a month ago, the general level of consumer prices increased at a slower rate of 0.3 percent in July from 0.6 percent in June. This can be attributed to the downward adjustments in the prices of selected food items such as corn, fish and rice.
The inflation rate in NCR further dropped to -1.0 percent in July from -0.1 percent in June.
Likewise, inflation rate in AONCR moved at a slower pace of 0.7 percent in July from 2.2 percent as lower annual inflation rates were noted in all the other regions except in SOCCSKSARGEN and ARMM. The biggest decline of 5.3 percentage points was posted in Eastern Visayas (0.2 percent from 5.5 percent). The lowest inflation rate was registered in Zamboanga Peninsula at -1.7 percent while the highest rate was in Cagayan Valley at 2.1 percent.
Slowdowns in the annual inflation rates were noticed in all the commodity groups. FLW and services index correspondingly recorded a negative rate of -4.8 percent and -3.8 percent in July from -5.4 percent and -1.1 percent in June, respectively. Moreover, inflation for FBT slowed to 1.6 percent from 3.1 percent; clothing, 2.3 percent from 2.5 percent; H&R, 2.4 percent from 2.8 percent; and miscellaneous items, 2.6 percent from 2.8 percent.
At the national level, annual inflation rate for food alone further went down to 1.5 percent in July from 3.0 percent in June.
Compared to their corresponding rates in June, the annual price gains in July were slower in all the food groups except for fish whose annual inflation rate was higher at 6.7 percent from 4.8 percent. On an annual basis, the price increment in rice and corn correspondingly fell to -5.7 percent and -8.6 percent from their respective last month’s rates of -0.6 percent and -2.1 percent. Likewise, price add-on in cereal preparations decelerated to 5.6 percent from 6.7 percent; dairy products, 6.1 percent from 6.7 percent; eggs, 7.1 percent from 7.4 percent; fruits and vegetables, 2.3 percent from 3.9 percent; meat, 3.0 percent from 3.3 percent; and miscellaneous foods, 2.7 percent from 3.1 percent.
In NCR, negative annual rates were respectively seen in FLW and services items at -1.7 percent and -9.4 percent from their corresponding previous month’s rates of -2.9 percent and -6.1 percent. Moreover, annual inflation rate for FBT and H&R slackened to 2.2 percent from 2.4 percent and 2.5 percent, respectively; and clothing, 1.2 percent from 1.3 percent. The annual price increase in miscellaneous items remained at its last month’s rate of 2.3 percent.
Inflation for food alone in NCR continued to register a slower rate of 2.1 percent in July compared with the 2.3 percent growth in June.
A negative annual rate was still posted in the index of rice at -10.3 percent in July from -9.7 percent in June. Moreover, slowdowns were recorded in the annual growth of cereal preparations index at 4.2 percent from 5.6 percent; dairy products, 4.9 percent from 5.5 percent; fruits and vegetables, 1.9 percent from 5.7 percent; meat, 1.7 percent from 2.1 percent; and miscellaneous food items, 4.4 percent from 4.7 percent. However, the annual price change in the corn index was higher at 9.9 percent from 6.0 percent; eggs, 8.2 percent from 8.1 percent; and fish, 7.8 percent from 1.9 percent.
In AONCR, the annual rates of price movements in FLW and services index were correspondingly posted at -6.4 percent and -0.3 percent, respectively. In addition, the FBT index recorded a slower annual rate of increase at 1.5 percent from 3.3 percent; clothing and miscellaneous items, 2.7 percent from 3.0 percent and 2.9 percent, respectively; and H&R, 2.5 percent from 3.0 percent.
Compared to a year ago, inflation for food alone in AONCR further went down to 1.3 percent in July from 3.3 percent in June.
On an annual basis, price movement in rice dropped to -5.0 percent in July as thirteen regions had negative annual rates. The biggest decline of 19.1 percentage points (-3.0% from 16.1%) was noted in Eastern Visayas.
The corn index further decreased to -8.8 percent in July from -2.2 percent in June. Likewise, the annual price increment in cereal preparations slowed to 6.1 percent from 7.1 percent; dairy products, 6.6 percent from 7.1 percent; eggs, 6.8 percent from 7.2 percent; fruits and vegetables, 2.5 percent from 3.4 percent; meat, 3.6 percent from 3.7 percent; and miscellaneous food items, 2.0 percent from 2.4 percent. On the other hand, higher price addition was seen in fish at 6.4 percent from 5.5 percent.
The 0.1 percent gain in consumer prices in NCR in July was slower compared to its last month’s rate of 0.6 percent. This was primarily due to the reductions in the prices of FBT at -0.1 percent from 0.4 percent. On the contrary, price hikes in clothing and FLW items were correspondingly higher at 0.1 percent and 1.6 percent from zero growth and -1.7 percent, respectively. Prices of H&R, services and miscellaneous items were stable as their group’s index had a zero growth.
Prices in AONCR also showed a slower movement at 0.4 percent in July from 0.6 percent in June. Moreover, lower price increases were noted in clothing items at 0.2 percent from 0.3 percent; H&R and miscellaneous items, 0.1 percent from 0.3 percent and 0.2 percent, respectively; and services, 0.4 percent from 2.3 percent. On the other hand, price adjustments in FLW items grew to 2.3 percent from 0.7 percent while those in FBT items remained at its previous month’s growth rate of 0.2 percent.
Ten regions recorded slower month-on-month inflation rates with MIMAROPA registering the biggest slowdown of 0.9 percentage point (0.1% from 1.0%). The lowest rate was in MIMAROPA, Central Visayas, Northern Mindanao and Davao at 0.1 percent.
Compared to Luzon, price movements were lower in Visayas and Mindanao.
The month-on-month inflation rate in the Philippines went down to 0.3 percent in July from 0.6 percent in June. It resulted from the slower monthly price increments observed in FBT items at 0.1 percent from 0.3 percent; clothing, H&R and miscellaneous items, 0.1 percent from 0.2 percent; and services, 0.3 percent from 2.4 percent. Meanwhile, a higher increment in the FLW index was noticed at 2.1 percent from -0.2 percent.
The abundance of corn in the wet markets brought about by the harvest season in many provinces pushed down the corn index in AONCR by -2.6 percent and in the Philippines by -2.5 percent. In NCR, prices of corn moved at a slower pace of 3.7 percent from 5.8 percent.
Cheaper prices of fish were recorded due to sufficient supply of selected fish species in the markets as weather conditions during the month favored fishermen in catching fish. The fish index at the national level and in AONCR declined by -0.2 percent from -0.1 percent; and in NCR, -0.1 percent from 0.4 percent.
With enough supply of rice in the markets in NCR and AONCR, movement in the group’s index in the three areas improved to -0.1 percent.
Lower production of eggs caused by the slowdown in the growths of chicken during the month limited its supply in the markets. This raised the group’s index in the Philippines by 0.3 percent and in NCR, 0.7 percent. In AONCR, the index moved up at 0.1 percent, slower than the 0.3 percent in June.
Upward adjustments in the prices of milk and milk products slowly pulled up the index of dairy products in AONCR by 0.2 percent from 0.3 percent in June. Meanwhile, movements in the group’s index in the Philippines and in NCR were at their last month’s rates of 0.2 percent and 0.1 percent, respectively.
Higher prices of coffee, cocoa, tonic drinks, margarine, and selected spices and seasonings in some regions effected a 0.5 percent increment in the miscellaneous foods index in AONCR. However, price gains on these food items in NCR were offsetted by the downward movements in the prices of selected spices. This resulted to a zero growth rate in the group’s index in the area. The group’s index at the national level advanced by 0.3 percent from 0.1 percent.
Despite of the rollbacks in the prices of gasoline and diesel oil in NCR, the services index recorded a zero growth during the month brought about by higher charges for medical and personal services in the area. Meanwhile, increments in the prices of gasoline and diesel oil during the latter part of the month, uptick in prices of selected medicines, higher charges for medical services observed in some regions pushed up the group’s index in AONCR by 0.4 percent. This was however slower than the 2.3 percent growth last month. The national index also moved at a slower pace of 0.3 percent from 2.4 percent in June.
The nationwide increase in the prices of LPG and kerosene along with the higher generation and system loss charges in electricity rates in NCR primarily raised the FLW index in the three areas: Philippines, 2.1 percent from -0.2 percent; NCR, 1.6 percent from -1.7 percent; and AONCR, 2.3 percent from 0.7 percent.
Month-on-Month Inflation Rates, All Items |
||
| July | June | |
| Philippines | 0.3 | 0.6 |
| NCR | 0.1 | 0.6 |
| AONCR | 0.4 | 0.6 |
CONSUMER PRICE INDEX
(2000=100)
JULY 2009
By Region, Year-on-Year
By Commodity Group, Year-on-Year
By Region, Month-on-Month
By Commodity Group, Month-on-Month
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: August 5, 2009