Date Released: November 5, 2009
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
OCTOBER AND SEPTEMBER 2009
Year-on-Year Inflation Rates, All Items |
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| October | September | Year-to-date | |
| Philippines | |||
| Headline | 1.6 | 0.7 | 3.2 |
| Core | 2.7 | 2.8 | 4.4 |
| NCR | |||
| Headline | 1.1 | -0.3 | 1.3 |
| AONCR | |||
| Headline | 1.9 | 1.1 | 4.0 |
The annual headline inflation rate at the national level picked up to 1.6 percent in October from 0.7 percent in September brought about by the higher annual price increment in the heavily weighted food, beverages and tobacco (FBT) index. Inflation a year ago was 11.2 percent.
Excluding selected food and energy items, core inflation continued to register a slower rate at 2.7 percent in October from 2.8 percent in September.
Similarly, the annual rate of price adjustment in the National Capital Region (NCR) went up to 1.1 percent in October from -0.3 percent in September due to the acceleration in the inflation rates of FBT and housing and repairs (H&R) index.
Annual inflation rate in Areas Outside the National Capital Region (AONCR) increased to 1.9 percent in October from 1.1 percent in September. This can be attributed to higher annual price increment posted in the index of FBT.
The devastation caused by typhoon “Pepeng” in the northern part of Luzon limited the volume of vegetable deliveries in the markets thereby pushing up their prices in NCR and in many regions. Higher prices of fruits and pork were also noted in selected regions including NCR. These factors resulted to a 0.6 percent uptick in the month-on-month inflation rate at the national level from 0.2 percent in September.
The annual inflation rate in NCR jumped to 1.1 percent in October from -0.3 percent in September.
Annual inflation rate in all the regions except in Zamboanga Peninsula and Northern Mindanao were higher during the month than in September. Thus, inflation rate in AONCR advanced to 1.9 percent in October from 1.1 percent last month. The biggest acceleration of 1.6 percentage points was recorded in Cagayan Valley (3.9% from 2.3%) and Caraga (1.6% from zero growth). The highest annual inflation rate among the regions was seen in Cagayan Valley at 3.9 percent while the lowest was posted in Central Visayas at 0.2 percent.
Higher annual inflation rate for FBT in the Philippines continued to prevail at 3.7 percent in October from 2.2 percent in September. On the other hand, slower annual price movements were registered in the indexes of clothing and miscellaneous items at 2.0 percent from 2.1 percent while that for H&R items remained at 2.1 percent. The indexes of fuel, light and water (FLW) and services still recorded negative annual rates at -3.6 percent and -2.2 percent, respectively from their corresponding last month’s rates of -3.4 percent and -3.1 percent.
The annual inflation rate for food alone at the national level climbed to 3.8 percent in October from 2.1 percent in September.
Annual price adjustments were higher in rice at 0.8 percent in October from -1.9 percent in September; fruits and vegetables, 9.6 percent from 1.5 percent; and meat, 4.5 percent from 2.7 percent. Slower annual price increases were however observed in the cereal preparations index at 3.3 percent from 3.7 percent; dairy products, 3.6 percent from 4.0 percent; and fish, 5.3 percent from 6.2 percent. The annual price movements in eggs and miscellaneous foods index remained at 5.8 percent and 2.8 percent, respectively while the corn index still posted a negative annual rate of 0.1 percent from -2.2 percent.
In NCR, inflation rates for FBT and H&R index correspondingly grew to 6.1 percent and 2.1 percent in September from 2.9 percent and 1.9 percent. On the other hand, the annual price hike in the miscellaneous items index slowed down to 1.7 percent from 1.8 percent while that for clothing index remained at 1.1 percent. Negative annual rates were still observed in the FLW and services index at -4.8 percent and -5.6 percent, respectively from their corresponding last month’s rates of -2.4 percent and -7.1 percent.
Annual price gains for food alone in NCR accelerated to 6.3 percent in October from 2.9 percent in September.
Double digit annual growth rates were correspondingly posted in corn and fruits and vegetables index at 10.0 percent and 24.9 percent in October from their respective September rates of 9.5 percent and 4.3 percent. Moreover, higher annual price gains were also seen in the fish and meat index at 6.3 percent and 6.2 percent, respectively from their corresponding last month’s rates of 6.0 percent and 1.7 percent. Annual price hikes however slowed down in the cereal preparations index (1.9% from 2.3%); dairy products (2.7% from 2.8%); eggs (7.3% from 8.3%); and miscellaneous foods (4.2% from 4.3%). The rice index still recorded a negative annual rate at -0.2 percent from -2.6 percent last month.
In AONCR, annual inflation rate for FBT index picked up to 3.1 percent in October from 1.9 percent in September. Meanwhile, annual inflation in the index of clothing items eased to 2.3 percent from 2.4 percent; H&R items, 2.1 percent from 2.2 percent; and miscellaneous items, 2.2 percent from 2.3 percent. Annual price adjustments in the FLW and services index were posted at -3.0 percent and -0.1 percent, respectively from their corresponding previous month’s rates of -3.9 percent and -0.8 percent.
Annual price hikes for food alone in AONCR went up to 3.0 percent in October from 1.8 percent in September.
The rice index had a higher annual growth at 0.9 percent from -1.9 percent due to faster annual price movements posted in all the regions. The biggest jump of 6.3 percentage points was noticed in Caraga (0.6% from -5.7%).
Higher annual increments were also recorded in the index of eggs at 5.3 percent from 5.1 percent; fruits and vegetables, 5.0 percent from 0.8 percent; meat, 3.8 percent from 3.0 percent; and miscellaneous foods, 2.2 percent from 2.1 percent.
On the other hand, the annual price increase in cereal preparations index slowed to 3.9 percent from 4.3 percent; dairy products, 4.0 percent from 4.5 percent; and fish, 5.2 percent from 6.2 percent. The corn index still recorded a negative annual rate at -0.2 percent from -2.4 percent.
The month-on-month inflation rate in NCR jumped to 1.0 percent in October from 0.2 percent in September. Higher rates were observed in the prices of FBT items at 2.6 percent in October from 0.7 percent in September; clothing items, 0.1 percent from zero growth; and H&R items, 0.4 percent from -0.1 percent, while that for miscellaneous items remained at 0.1 percent. On the other hand, price movements of FLW and services index were still negative at -0.1 percent and -0.3 percent, respectively from their corresponding last month’s rates of -0.3 percent and -0.4 percent.
Prices in AONCR likewise rose to 0.4 percent in October from 0.2 percent in September due to higher price increments in FBT items at 0.6 percent from 0.1 percent. Slower price addition was however seen in FLW items at 0.4 percent from 1.2 percent while price movements in clothing and miscellaneous items remained at 0.2 percent and H&R items, 0.1 percent. Prices of services items declined by -0.2 percent from 0.2 percent last month.
The highest month-on-month inflation rate of 1.3 percent was registered in Cagayan Valley while the lowest rate was in Zamboanga Peninsula at -0.5 percent.
With the uptrend in the prices in all the regions, the island of Luzon had the highest monthly growth rate compared to Visayas and Mindanao. Meanwhile, price increments in the regions in Visayas were generally slower compared to their last month’s rates.
The overall month-on-month inflation rate went up to 0.6 percent in October from 0.2 percent in September as prices of FBT items advanced by 1.1 percent from 0.2 percent. Increases in the prices of H&R items at 0.2 percent from 0.1 percent also contributed to the uptrend. However, price gains in FLW decelerated to 0.2 percent from 0.7 percent. Price uptick in clothing items remained at 0.1 percent for four consecutive months and miscellaneous items, 0.2 percent while that of services items dropped by -0.3 percent from zero growth.
The limited supply of vegetables in the markets as roads from vegetable supplying provinces were not passable due to landslides and road cuts caused their prices to accelerate during the month. Higher prices of selected fruits were also posted in many regions including NCR. All these factors raised the index of fruits and vegetables in the three areas in October: Philippines, 8.4 percent from 2.1 percent; NCR, 21.1 percent from 4.4 percent; and AONCR, 4.5 percent from 1.5 percent.
The supply gap and bigger demand of pork in many provinces resulted to higher prices in the markets. In addition, price gains were also seen in chicken and beef in selected regions. All these factors pushed prices of meat in the Philippines by 1.0 percent from 0.1 percent; NCR, 2.0 percent from 0.4 percent; and AONCR, 0.6 percent from -0.1 percent.
Prices of salt and selected spices and seasonings went up in some regions including NCR. Thus, the miscellaneous foods index in the Philippines advanced by 0.3 percent; NCR 0.1 percent; and AONCR, 0.4 percent
The difficulty in catching fish species brought about by unfavorable weather conditions resulted to less supply in the wet markets. Higher prices of canned fish were also noted during the month. Hence, the fish index in the Philippines and AONCR grew by 0.2 percent and in NCR, 0.4 percent.
With higher prices of flour and flour products, the index for cereal preparations index in the Philippines rose by 0.3 percent; NCR, 0.1 percent; and AONCR, 0.4 percent.
The on-going harvest season continued to improve the supply of rice in the markets in AONCR. With eleven regions registering negative monthly growth rates in the index, the aggregate index of rice in the Philippines and AONCR declined by -0.4 percent and -0.5 percent, respectively. In NCR, the price increase in rice remained at 0.1 percent.
The H&R index in the Philippines went up to 0.2 percent; NCR, 0.4 percent; and AONCR, 0.1 percent. This was due to the upward adjustments in the prices of selected construction materials recorded in a few regions.
With the price addition in LPG, the FLW index in the Philippines and AONCR moved up by 0.2 percent and 0.4 percent. In NCR, lower charges in electricity rates and reduction in the price of kerosene pushed down its FLW index by -0.1 percent.
Higher prices of some items for household operations and personal care and effects effected increases in the miscellaneous items index in the Philippines and AONCR by 0.2 percent during the month and in NCR, 0.1 percent.
Price rollbacks in gasoline and diesel along with price decreases in medicines pulled down the services index in the three areas: Philippines and NCR, -0.3 percent from their respective last month’s rates of zero growth and -0.4 percent; and in AONCR, -0.2 percent from 0.2 percent.
Month-on-Month Inflation Rates, All Items |
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| October | September | |
| Philippines | 0.6 | 0.2 |
| NCR | 1.0 | 0.2 |
| AONCR | 0.4 | 0.2 |
CONSUMER PRICE INDEX
(2000=100)
OCTOBER 2009
By Region, Year-on-Year
By Commodity Group, Year-on-Year
By Region, Month-on-Month
By Commodity Group, Month-on-Month
NOTES:
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)
The first and second phase survey reports from Sulu were not received as of November 5, 2009.
(Sgd.) CARMELITA N. ERICTA
Administrator
Source: National Statistics Office
Manila, Philippines
Page last updated: November 5, 2009