Date Released: January 5, 2011
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2000=100)
DECEMBER AND NOVEMBER 2010
Year-on-Year Inflation Rates, All Items |
|||
| December | November | Year-to-date | |
| Philippines | |||
| Headline | 3.0 | 3.0 | 3.8 |
| Core | 3.4 | 3.5 | 3.7 |
| NCR | |||
| Headline | 3.4 | 3.6 | 4.0 |
| AONCR | |||
| Headline | 2.8 | 2.8 | 3.7 |
The annual headline inflation in the Philippines at 3.0 percent in December was the same rate posted in November. Higher annual rates of price increases in food, beverages and tobacco (FBT) and clothing index were offsetted by the slower annual growths registered in fuel, light and water (FLW), services and miscellaneous items index. Inflation a year ago was 4.3 percent.
The country’s average annual headline inflation rate for the year 2010 was 3.8 percent compared to 3.2 percent a year ago.
Excluding selected food and energy items, core inflation eased to 3.4 percent in December from 3.5 percent in November. The annual average core inflation rate was 3.7 percent in 2010 from 4.1 percent in 2009.
The annual inflation in the National Capital Region (NCR) slowed down to 3.4 percent in December from 3.6 percent in November brought about by the lower annual price increments in FLW and services index. The annual average inflation in the area for 2010 was 4.0 percent, higher by 2.4 percentage points than the 1.6 percent in 2009.
Annual price movements in Areas Outside the National Capital Region (AONCR) remained at 2.8 percent in December as higher annual price uptick in FBT, clothing and FLW index was offsetted by the slower annual price hike in services index. The same previous month’s rates were recorded in H&R and miscellaneous items index. The average inflation for the year at 3.7 percent was lower by 0.2 percentage point than the 3.9 percent registered in 2009.
Year-on-Year Inflation Rates in the Philippines, All Items January 2005 - December 2010 |
||||||
Month |
Year |
|||||
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
January |
8.4 |
6.7 |
3.9 |
4.9 |
7.1 |
4.3 |
|---|---|---|---|---|---|---|
February |
8.5 |
7.6 |
2.6 |
5.4 |
7.3 |
4.2 |
March |
8.5 |
7.6 |
2.2 |
6.4 |
6.4 |
4.4 |
April |
8.5 |
7.1 |
2.3 |
8.3 |
4.8 |
4.4 |
May |
8.5 |
6.9 |
2.4 |
9.5 |
3.3 |
4.3 |
June |
7.6 |
6.7 |
2.3 |
11.4 |
1.5 |
3.9 |
July |
7.1 |
6.4 |
2.6 |
12.3 |
0.2 |
3.9 |
August |
7.2 |
6.3 |
2.4 |
12.4 |
0.1 |
4.0 |
September |
7.0 |
5.7 |
2.7 |
11.8 |
0.6r |
3.5 |
October |
7.0 |
5.4 |
2.7 |
11.2 |
1.6 |
2.8 |
November |
7.1 |
4.6 |
3.2 |
9.9 |
2.8 |
3.0 |
December |
6.7 |
4.3 |
3.9 |
8.0 |
4.3r |
3.0 |
Average |
7.6 |
6.2 |
2.8 |
9.3 |
3.2 |
3.8 |
Month-on-Month Inflation Rates, All Items |
||
| December | November | |
| Philippines | 0.5 | 0.8 |
| NCR | 0.4 | 1.6 |
| AONCR | 0.6 | 0.6 |
Increases in consumer prices were generally slower at 0.5 percent in December compared to 0.8 percent in November. This was due to the deceleration in the price overall prices gains in FBT and FLW index. Declines in the prices of selected food items such as rice in some regions and corn, fruits and vegetables in NCR effected the deceleration in the monthly growth rate of the national FBT index. Moreover, lower charges for electricity rates in NCR contributed to the downtrend.
CONSUMER PRICE INDEX
(2000=100)
DECEMBER 2010
By Region, Year-on-Year
The annual inflation rate in NCR slid to 3.4 percent in December from 3.6 percent in November.
In AONCR, annual inflation was registered at 2.8 percent in December, the same rate recorded in November. Higher annual inflation rates were noted in nine regions with the biggest increase of 0.6 percentage point posted in Ilocos (1.3% from 0.7%). The highest inflation rate was noticed in Caraga at 3.7 percent while the lowest annual rate was still in Ilocos at 1.3 percent.
Among the regions in AONCR, the highest annual average inflation rate at 6.0 percent in 2010 was recorded in ARMM while Ilocos posted the lowest annual average inflation at 2.5 percent.
By Commodity Group, Year-on-Year
Annual price increases in FBT and clothing index in the Philippines were higher at 2.0 percent and 1.9 percent in December compared to their respective November rates of 1.9 percent and 1.7 percent. Meanwhile, annual price hike was slower in FLW index at 11.5 percent from 12.0 percent; services, 3.5 percent from 3.8 percent; and miscellaneous items, 1.1 percent from 1.2 percent. Annual price gain in H&R index remained at 1.9 percent.
The overall annual inflation for food alone index continued to move upward at a rate of 2.0 percent for three consecutive months.
The annual growth in the index of cereal preparations was higher at 3.2 percent in December from 2.8 percent in November; fish, 2.6 percent from 2.3 percent; and miscellaneous foods, 7.5 percent from 7.2 percent. Slowdown in the annual price increment was however recorded in the eggs index at 2.6 percent from 2.7 percent. The annual price uptick in rice and dairy products index remained at their corresponding November rates of 0.8 percent and 1.4 percent while a negative annual rate was still seen in fruits and vegetables index at -4.2 percent from -5.7 percent. The meat index posted a zero growth from 1.6 percent in November.
The annual average inflation for food alone in 2010 was slower at 3.1 percent from 6.0 percent in 2009.
The 2010 annual average rates in the indices of FLW and services were higher at 13.2 percent and 4.5 percent, respectively from negative rates of -2.6 percent and -0.3 percent in 2009. On the contrary, annual average inflation rate in FBT index improved to 3.0 percent from 5.8 percent; clothing, 1.9 percent from 2.5 percent; H&R, 1.7 percent from 2.9 percent; and miscellaneous items, 1.4 percent from 2.6 percent.
In NCR, annual price increases in FLW and services index decelerated correspondingly to 16.9 percent and 4.2 percent in December from their respective November rates of 18.5 percent and 4.7 percent. The annual price hike in FBT index was however higher at 0.8 percent from 0.7 percent and clothing, 1.3 percent from 1.2 percent while those for H&R and miscellaneous items index remained at 2.3 percent and 0.6 percent., respectively.
Higher annual inflation rate was noted in the food alone index in NCR at 0.7 percent in December from 0.6 percent in November.
The annual price change in cereal preparations index was higher at 2.0 percent in December from 1.9 percent in November; dairy products, 1.5 percent from 1.4 percent; fish, 5.5 percent from 3.6 percent; and miscellaneous foods, 4.2 percent from 3.9 percent. On the other hand, slowdowns in annual rates were recorded in the index of rice at 0.5 percent from 0.8 percent; corn, 5.5 percent from 10.4 percent; and eggs, 2.2 percent from 2.6 percent. Negative annual price movements were still posted in fruits and vegetables index at -7.8 percent from -8.9 percent and meat, -2.2 percent from -0.6 percent.
The annual average inflation rate of the food alone group in NCR at 1.8 percent in 2010 was slower by 3.4 percentage points from the 5.2 percent in 2009.
The annual average inflation for FLW index in NCR was higher at 17.8 percent in 2010 from -1.4 percent in 2009 and services, 5.2 percent from -4.2 percent. Meanwhile, annual average inflation for the FBT index slowed to 1.8 percent in 2010 from 5.1 percent; clothing, 1.4 percent from 1.5 percent; H&R, 1.6 percent from 2.8 percent; and miscellaneous items, 0.9 percent from 2.2 percent.
In AONCR, the annual inflation for FBT index went up to 2.4 percent in December from 2.3 percent in November; clothing, 2.1 percent from 2.0 percent; and FLW, 8.7 percent from 8.6 percent. The annual growth rate for services index however eased to 3.1 percent from 3.3 percent while those for H&R and miscellaneous items remained at their respective November rates of 1.5 percent and 1.3 percent.
On an annual basis, price increases in food alone items in AONCR further slipped to 2.3 percent in December from 2.4 percent in November.
Negative annual price changes continued to register in corn and fruits and vegetables index at -1.4 percent and -3.2 percent, respectively from their corresponding last month’s rates of -1.0 percent and -4.7 percent.
Moreover, the annual price addition in the dairy products index slid to 1.4 percent from 1.5 percent; eggs, 2.7 percent from 2.8 percent; and meat, 0.9 percent from 2.6 percent.
On the other hand, annual price increment in cereal preparations index was higher at 3.7 percent from 3.2 percent and miscellaneous foods, 8.9 percent from 8.6 percent while that for fish index remained at 2.1 percent.
The rice index gained 0.9 percent in December, the same rate registered in November. Faster annual growths were recorded in five regions with the biggest jump of 3.0 percentage points (1.8% from -1.2%) posted in Cagayan Valley. Meanwhile, the highest annual rate was in MIMAROPA at 3.8 percent.
The 2010 annual average inflation of the food alone group in AONCR at 3.4 percent was slower by 2.8 percentage points from 6.2 percent in 2009.
Compared with last year, annual average inflation for FBT index decelerated to 3.4 percent in 2010 from 6.1 percent in 2009; clothing, 2.1 percent from 3.0 percent; H&R, 1.8 percent from 2.9 percent; and miscellaneous items, 1.5 percent from 2.7 percent. Annual average inflation for FLW index was however higher at 10.9 percent from -3.2 percent and services, 4.1 percent from 2.0 percent.
By Region, Month-on-Month
The aggregate month-on-month inflation rate in NCR moved up at slower pace of 0.4 percent in December from 1.6 percent in November. Slower price increases were observed in FBT items at 0.3 percent from 1.2 percent; H&R items, 0.1 percent from 0.2 percent; and FLW items, 0.2 percent from 9.6 percent. On the other hand, faster price adjustments was noticed in the prices of services items at 1.0 percent from 0.6 percent while that for clothing items remained at 0.1 percent. The miscellaneous items posted a zero growth from 0.1 percent in November.
The general price increases on consumer items in AONCR remained at 0.6 percent in December. Higher price increments were registered in all the commodity groups expect for FBT index whose monthly rate eased to 0.4 percent from 0.6 percent. Prices of clothing and miscellaneous items picked up to 0.4 percent and 0.2 percent from 0.1 percent; H&R items, 0.1 percent from zero growth; FLW items, 3.0 percent from 2.6 percent; and services items, 0.5 percent from 0.3 percent.
Compared to last month, ten regions posted higher monthly growth rates in December. The highest month-on-month inflation at 0.8 percent was observed in Bicol while the lowest rate of 0.2 percent was noticed in ARMM.
Among the three big areas of the country, monthly upward price adjustment was fastest in Luzon and Visayas compared to Mindanao.
By Commodity Group, Month-on-Month
At the national level, consumer prices generally went up but at a slower pace of 0.5 percent in December from 0.8 percent in November. This was due to the deceleration in the price increases of FBT items at 0.4 percent from 0.7 percent and FLW items, 2.0 percent from 5.0 percent. Price gains in clothing items were however higher at 0.3 percent from 0.1 percent and services items, 0.7 percent from 0.4 percent while those for H&R and miscellaneous items remained at 0.1 percent.
Higher demand for fish products resulted to price hikes particularly on shrimps, crabs, shells and mollusks. The difficulty in catching fish species during the cold weather conditions also limited the volume of fish supply in the markets. Thus, the group’s index increased by 1.3 percent in December from 0.7 percent in November; 3.5 percent from 1.0 percent in NCR; and 0.8 percent from 0.6 in AONCR.
Upward price adjustments in beef, chicken and meat products during the holiday season pushed up the meat index in the Philippines and NCR by 0.4 percent and 0.6 percent, respectively. These were however slower than their corresponding previous month’s rates of 0.6 percent and 1.8 percent. In AONCR, price gain in the group’s index was higher at 0.3 percent from 0.1 percent.
The continued increases in the prices of sugar and cooking oil resulted to growths in miscellaneous foods index at 0.8 percent in the Philippines; 0.3 percent in NCR; and 0.9 percent in AONCR.
The fruits and vegetables index in NCR dropped by -2.4 percent from 6.7 percent. This was due to the ample supply of vegetables and the continuous flowing-in of locally grown fruits in the NCR markets. However, mixed trends in the prices of fruits and vegetables in AONCR resulted to a zero growth in the group’s index from 5.1 percent. At the national level, the group’s index declined by -0.6 percent from 5.5 percent in November.
With the sufficient supply of rice in the markets, its prices in the three areas dropped by -0.1 percent. Zamboanga Peninsula continued to post the biggest decline in the rice index at -1.5 percent while the highest rate of 0.6 percent was seen in Eastern Visayas and Northern Mindanao.
The general price increments in gasoline and diesel nationwide raised the services index in the Philippines by 0.7 percent; NCR, 1.0 percent; and AONCR, 0.5 percent.
Add-ons in the prices of LPG and kerosene were offsetted by lower charges in electricity rates in NCR. Thus, the FLW index in NCR went up at slower pace of 0.2 percent from 9.6 percent. On the other hand, the FLW index in AONCR gained 3.0 percent from 2.6 percent due to upward adjustments in the charges for electricity rates in selected regions. Similarly, price hikes in LPG and kerosene were noticed in most of the regions. At the national level, the movement in the FLW index eased to 2.0 percent from 5.0 percent.
Higher demand for selected ready-made apparel and footwear during the holiday season pushed up the clothing index in the Philippines by 0.3 percent; NCR, 0.1 percent; and AONCR, 0.4 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 prices hikes in selected construction materials generally observed in NCR and in many regions in AONCR.
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: