Date Released: September 4, 2009
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
AUGUST AND JULY 2009
Year-on-Year Inflation Rates, All Items |
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| August | July | Year-to-date | |
| Philippines | |||
| Headline | 0.1 | 0.2 | 3.7 |
| Core | 2.9 | 3.6 | 4.8 |
| NCR | |||
| Headline | -1.1 | -1.0 | 1.6 |
| AONCR | |||
| Headline | 0.6 | 0.7 | 4.6 |
The annual headline inflation rate at the national level was recorded at 0.1 percent in August, slower than the 0.2 percent in July. Except for food, beverages and tobacco (FBT), inflation rates for all the commodity groups decelerated. Inflation a year ago was 12.4 percent.
Excluding selected food and energy items, core inflation eased by 0.7 percentage point to 2.9 percent in August from 3.6 percent in July.
The annual rate in the National Capital Region (NCR) was still negative at -1.1 percent in August from -1.0 percent in July. This was brought about by the negative annual price adjustments in the fuel, light and water (FLW) and services index. Slowdowns in the annual rates of housing and repairs (H&R) and miscellaneous items also contributed to the downturn.
A similar trend was noted in the annual inflation rate in Areas Outside the National Capital Region (AONCR) as it moved at a slower rate of 0.6 percent in August from 0.7 percent in July. This was attributed to the negative annual rates in the FLW and services index and the slower annual price gains in clothing, H&R and miscellaneous index.
Compared with July, the general level of consumer prices moved up at a slower pace of 0.2 percent in August from 0.3 percent. It resulted from a slowdown in the increment in the fuel, light and water (FLW) index and in the miscellaneous index during the period.
A further drop in the annual rate was noted in NCR at -1.1 percent in August from -1.0 percent in July.
Likewise, annual inflation rate in AONCR eased to 0.6 percent in August from 0.7 percent in July. Eleven regions recorded lower annual inflation rates with Ilocos registering the biggest drop of 1.1 percentage points (0.2 percent from 1.3 percent). The lowest annual rate was noticed in Caraga at -1.6 percent while the highest rate was in Davao at 2.1 percent.
Except for food, beverages and tobacco (FBT) items whose inflation grew to 1.8 percent from 1.6 percent, all the commodity groups posted lower rates in August. Slower upward price movements were seen in H&R at 2.3 percent from 2.4 percent; clothing and miscellaneous items at 2.2 percent from their corresponding last month’s rates of 2.3 percent and 2.6 percent. However, the annual movements in the prices of FLW and services items further dropped correspondingly to -5.4 percent and -4.2 percent from -4.8 percent and -3.9 percent, respectively.
The inflation rate for food alone at the national level rose to 1.7 percent in August from 1.5 percent in July.
While negative annual rates were observed in the index of rice (-3.7%) and corn (-3.9%), it however, moved faster than their respective previous month’s rates of -5.7 percent and -8.6 percent. Meanwhile, annual price increments were slower in cereal preparations index at 4.5 percent from 5.6 percent; dairy products, 4.9 percent from 6.1 percent; eggs, 6.3 percent from 7.1 percent; fish, 6.5 percent from 6.7 percent; fruits and vegetables, 1.1 percent from 2.3 percent; meat, 2.2 percent from 3.0 percent; and miscellaneous foods, 2.6 percent from 2.7 percent.
In NCR, negative annual rates were still observed in FLW (-2.9% from -1.7%) and services items (-8.8% from -9.4%). In addition, annual inflation rate for H&R decelerated to 2.0 percent from 2.2 percent and miscellaneous items, 1.8 percent from 2.3 percent. The annual price increase in FBT and clothing items remained at their respective previous month’s rates of 2.2 percent and 1.2 percent.
Inflation for food alone in NCR recorded a higher rate of 2.2 percent in August compared with the 2.1 percent growth in July.
The annual price change in the eggs index was higher at 8.4 percent from 8.2 percent and in miscellaneous foods, 4.6 percent from 4.4 percent. Slowdowns were registered in the annual growth of corn index at 9.7 percent from 9.9 percent; cereal preparations, 2.8 percent from 4.2 percent; dairy products, 3.5 percent from 4.9 percent; fish, 7.1 percent from 7.8 percent; fruits and vegetables, 1.5 percent from 1.9 percent; and meat, 0.6 percent from 1.7 percent. The rice index moved at a negative rate of -5.6 percent, faster than the -10.3 percent in July.
In AONCR, the annual rate of price adjustment in the FLW and services index correspondingly went down by -6.6 percent and -1.5 percent from their respective July rates of -6.4 percent and -0.4 percent. In addition, the clothing index posted a lower rate of increase at 2.6 percent from 2.7 percent; H&R and miscellaneous items, 2.4 percent from 2.5 percent and 2.7 percent, respectively. However, inflation rate for FBT items advanced to 1.6 percent from 1.5 percent last month.
Compared to a year ago, inflation for food alone in AONCR was higher by 0.2 percentage point to 1.5 percent in August from 1.3 percent in July.
The annual price movement in the rice index was still negative at -3.4 percent compared to the -5.0 percent in July. Except for SOCCSKSARGEN whose annual rate accelerated to 2.1 percent from -7.0 percent, all regions recorded lower annual rates with Ilocos registering the biggest decrease of 3.9 percentage points (-3.0% from 0.9%). A negative annual rate of -4.1 percent was also noted in the corn index from its previous month’s rate of -8.8 percent. Meanwhile, the fish index retained its last month’s rate of 6.4 percent.
The cereal preparation index’s annual inflation eased to 5.2 percent from 6.1 percent; dairy products, 5.5 percent from 6.6 percent; eggs, 5.6 percent from 6.8 percent; fruits and vegetables, 1.0 percent from 2.5 percent; meat, 2.9 percent from 3.6 percent; and miscellaneous food items, 1.6 percent from 2.0 percent.
Compared to a month ago, consumer prices in NCR generally remained stable as it posted a zero month-on-month inflation rate in August from 0.1 percent in July. Prices of FLW items declined by -1.3 percent from 1.6 percent. On the other hand, price increments in H&R and services items were correspondingly higher at 0.1 percent and 0.8 percent from zero growth while FBT and clothing items were still at their respective previous month’s rates of -0.1 percent and 0.1 percent. Prices of miscellaneous items remained stable as its index had a zero growth.
Prices in AONCR also had a slower movement at 0.2 percent in August from 0.4 percent in July. Annual upward adjustment in the prices of FBT items slid to 0.1 percent from 0.2 percent; and FLW items, 0.8 percent from 2.3 percent. On the other hand, price addition in the H&R index was higher at 0.4 percent from 0.1 percent. Meanwhile, price gains in the following commodity groups remained at their previous month’s rates: clothing, 0.2 percent; services, 0.4 percent; and miscellaneous items, 0.1 percent.
The lowest month-on-month inflation rate of -0.1 percent was noticed in Caraga while the highest rate was in CAR at 0.8 percent.
Price movements in Mindanao were generally lower compared to the areas in Luzon and Visayas.
The month-on-month inflation rate at the national level slowed down to 0.2 percent in August from 0.3 percent in July. This was mainly due to the slower price increases in FLW items at 0.1 percent from 2.1 percent. Add-ons in the prices of FBT and clothing items were at their last month’s rate of 0.1 percent while no movement was noticed in miscellaneous items. On the other hand, increments in the prices of H&R and services items were correspondingly higher at 0.3 percent and 0.6 percent from their respective last month’s rates of 0.1 percent and 0.2 percent.
Sufficient supply of chicken in the markets pushed down its prices during the month. Lower prices of pork in some regions were also noticed in August. These factors contributed to the downward trend in the meat index in the three areas: Philippines, -0.6 percent from 0.5 percent; NCR, -1.7 percent from 0.4 percent; and AONCR, -0.1 percent from 0.6 percent.
With enough supply of corn in the markets in NCR, movement in the group’s index in the area improved to -0.1 percent. Likewise, good production of corn in some regions resulted to its ample supply in the markets in AONCR. This factor contributed to the downward trend in the group’s index in AONCR and at the national level by -1.3 percent from -2.6 percent and -2.5 percent, respectively.
Lower prices of rice in the markets brought about by increased supply due to the onset of the harvest season of palay in some provinces pulled down the group’s index in the Philippines and in AONCR by -0.1 percent and in NCR, -0.3 percent.
Prices of selected fish species increased during the month due to the stormy weather conditions which constrained fishermen to conduct their usual fishing trips. Hence, the fish index at the national level and in AONCR climbed by 0.8 percent and 1.0 percent, respectively. On the other hand, the sufficient supply of fish in the NCR markets resulted to a continued negative movement in its index at -0.6 percent from -0.1 percent.
The heavy rains that were experienced during the month affected the production of vegetables and its subsequent supply in the wet markets in NCR. 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 2.8 percent increase in the fruits and vegetables index in NCR and mainly contributed to the 0.7 percent increment in the national index. Some fruits and vegetables in AONCR were also priced higher during the month as the group’s index went up by 0.1 percent, but this was slower than its previous month’s rate.
The FLW index in NCR decelerated by -1.3 percent as declines were noted in the price of LPG and electricity rates during the period. In AONCR, increases in the prices of LPG and kerosene pushed up the index by 0.8 percent, but this was slower than the 2.3 percent gain last month. The national index slowed down to 0.1 percent from 2.1 percent in July.
Meanwhile, the series of price increments in gasoline and diesel oil during the month raised the services index in NCR and in the Philippines by 0.8 percent and 0.6 percent, respectively. The group’s index in AONCR moved at its last month’s rate of 0.4 percent.
Month-on-Month Inflation Rates, All Items |
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| August | July | |
| Philippines | 0.2 | 0.3 |
| NCR | 0.0 | 0.1 |
| AONCR | 0.2 | 0.4 |
CONSUMER PRICE INDEX
(2000=100)
AUGUST 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: September 4, 2009