Date Released: August 5, 2011
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2006=100)
JULY AND JUNE 2011
Year-on-Year Inflation Rates, All Items |
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| July 2011 | June 2011 | Year-to-date | |
| Philippines | 5.1 | 5.2 | 4.8 |
| NCR | 4.0 | 4.7 | 4.1 |
| AONCR | 5.3 | 5.4 | 5.0 |
The annual headline inflation at the national level eased to 5.1 percent in July from 5.2 percent in June. This was primarily due to the slower annual increase in the heavily weighted food and non-alcoholic beverages index. Deceleration in the annual growths in housing, water, electricity, gas and other fuels, health; transport; and restaurants and miscellaneous goods and services indices also contributed to the downtrend. Inflation a year ago was 3.7 percent.
Annual inflation in NCR likewise slowed down to 4.0 percent in July from 4.7 percent in June due to lower and negative annual rates of adjustments registered in all the commodity groups except in clothing and footwear; transport; and education indices.
Annual inflation in Areas Outside the National Capital Region (AONCR) improved to 5.3 percent in July from 5.4 percent in June. Slowdowns in the annual growths were observed in food and non-alcoholic beverages; housing, water, electricity, gas, and other fuels; and transport indices.
Year-on-Year Inflation Rates in the Philippines, All Items January 2007 - July 2011 |
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Month |
Year |
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| 2007 | 2008 | 2009 | 2010 | 2011 | |
January |
3.8 |
4.6 |
7.0 |
3.9 |
4.1 |
|---|---|---|---|---|---|
February |
2.9 |
5.1 |
7.2 |
3.9 |
4.7 |
March |
2.6 |
5.9 |
6.5 |
4.0 |
4.8 |
April |
2.6 |
7.3 |
5.6 |
4.0 | 4.7 |
May |
2.6 |
8.3 |
4.4 |
3.7 | 5.1 |
June |
2.7 |
9.4 |
3.1 |
3.7 | 5.2 |
July |
2.9 |
10.2 |
2.1 |
3.7 | 5.1 |
August |
2.7 |
10.5 |
1.7 |
4.0 | |
September |
2.9 |
10.1 |
2.2 |
3.9 | |
October |
2.9 |
9.7 |
2.8 |
3.3 | |
November |
3.1 |
9.0 |
3.6 |
3.7 | |
December |
3.8 |
7.7 |
4.5 |
3.6 | |
Average |
2.9 |
8.3 |
4.1 |
3.8 | |
Month-on-Month Inflation Rates, All Items |
||
| Jul 2011 | Jun 2011 | |
| Philippines | 0.1 | 0.5 |
| NCR | -0.2 | 0.6 |
| AONCR | 0.2 | 0.5 |
The national month-on-month inflation was slower at 0.1 percent in July from 0.5 percent in June. This was effected by the nationwide price declines in LPG and lower charges in electricity rates in selected provinces. Price decreases in food items such as rice, corn and chicken in NCR and the continuous price reductions in sugar in all the regions including NCR also contributed to the downtrend.
CONSUMER PRICE INDEX
(2006=100)
JULY 2011
By Region, Year-on-Year
The annual inflation in NCR moved up at a slower rate of 4.0 percent in July from 4.7 percent in June.
In AONCR, annual inflation decelerated to 5.3 percent in July from 5.4 percent in June. Lower annual inflation rates were noted in eight regions with the biggest decline of 0.7 percentage point posted in MIMAROPA (5.3% from 6.0%). The lowest annual rate remained in CAR at 3.4 percent while the highest inflation was still in ARMM at 8.1 percent.
By Commodity Group, Year-on-Year
A negative annual rate was still posted in communication index in the Philippines at -0.3 percent in July. Slowdowns in the annual price hike were also seen in the heavily weighted food and non-alcoholic beverages index at 5.7 percent in July from 6.0 percent in June; housing, water, electricity, gas, and other fuels, 5.4 percent from 5.9 percent; health, 3.3 percent from 3.5 percent; transport, 6.8 percent from 6.9 percent; and restaurants and miscellaneous goods and services, 2.9 percent from 3.0 percent. The rest of the commodity groups have either higher rates or maintained their corresponding June rate.
The annual increment in the food alone index at the national level eased to 5.9 percent in July from 6.2 percent in June.
The annual hike in rice index decelerated to 4.6 percent in July from 5.9 percent in June; oils and fats, 37.4 percent from 37.6 percent; fruits, 5.9 percent from 6.6 percent; and sugar, jam, honey, chocolate and confectionery, 3.0 percent from 10.7 percent.
The annual gain in milk, cheese and eggs index remained at its June rate of 2.7 percent while the rest of the food groups recorded higher annual uptick.
In NCR, a negative annual rate of -0.3 percent was still observed in communication index. In addition, slower annual increments were posted in all the other commodity groups except in clothing and footwear, transport and education index. The annual increase in clothing and footwear index was higher at 4.0 percent in July from 3.0 percent in June and transport, 7.4 percent from 7.2 percent while the education index moved at its June figure of 3.8 percent.
The annual inflation for food alone index in NCR slipped to 5.3 percent in July from 6.0 percent in June.
Double-digit annual decline was posted in corn index at -13.8 percent in July from -7.8 percent in June. Moreover, the annual increase in rice index continued to move at a slower pace of 3.3 percent from 9.8 percent; milk, cheese and egg, 2.1 percent from 2.2 percent; fruits, 2.9 percent from 3.0 percent; and sugar, jam, honey, chocolate and confectionery, 7.2 percent from 12.3 percent. All the other food groups registered higher annual growths.
In AONCR, a negative annual adjustment was still posted in communication index at -0.2 percent in July from -0.3 percent in June. In addition, the annual gain in food and non-alcoholic beverages index was slower at 5.8 percent from 6.0 percent; housing, water, electricity, gas and other fuels, 5.9 percent from 6.3 percent; and transport, 6.7 percent from 6.8 percent. On the other hand, the rest of the commodity groups either moved at faster pace or at their corresponding June rates.
The annual inflation in the food alone index in AONCR further improved to 6.0 percent in July from 6.2 percent in June.
The annual increment in the rice index eased to 4.9 percent in July from 5.4 percent in June. Nine regions have slower annual rates with the biggest decline of 2.3 percentage points posted in MIMAROPA (3.0% from 5.3%).
A slower annual hike was also observed in meat index at 2.1 percent in July from 2.3 percent in June; oils and fats, 33.4 percent from 33.9 percent; fruits, 6.7 percent from 7.5 percent; sugar, jam, honey, chocolate and confectionery, 2.3 percent from 10.4 percent; and food products, not elsewhere classified, 4.4 percent from 4.7 percent.
The annual change in milk, cheese and egg index remained at 2.8 percent while the rest of the food groups have higher annual rates.
By Region, Month-on-Month
The aggregate month-on-month price movement in NCR went down by -0.2 percent in July from 0.6 percent in June. This was mainly effected by the decline in the heavily weighted food and non-alcoholic beverages index at -0.2 percent from 0.6 percent. The index for housing, water, electricity, gas and other fuels also dropped by -0.7 percent from 1.0 percent. On the contrary, monthly hikes in clothing and footwear and health indexes were correspondingly higher at 1.8 percent and 1.3 percent from 0.1 percent and transport index, 0.1 percent from -0.4 percent. The rest of the commodity groups have zero growth during the month.
The general price increases of consumer items in AONCR slipped to 0.2 percent in July from 0.5 percent in June. Negative monthly adjustment was seen in housing, water, electricity, gas and other fuels index at -0.1 percent from 0.7 percent. Moreover, slower add-ons were noticed in alcoholic beverages and tobacco; clothing and footwear and education indexes at 0.3 percent from their corresponding last month’s rates of 0.9 percent, 0.5 percent and 4.5 percent. Upward adjustments in health and restaurants and miscellaneous goods and services index also decelerated to 0.2 percent from 0.3 percent and 0.4 percent, respectively. The communication index still recorded a zero growth while the rest of the commodity groups moved at their previous month’s rates or had higher monthly increases.
Twelve regions registered either negative or lower monthly price changes. The lowest rate at -0.1 percent was in MIMAROPA and Davao Region while the highest was in Ilocos at 0.6 percent.
Among the three big areas of the country, the aggregate price increases of consumer items in Visayas were slower compared to Luzon and Mindanao areas.
By Commodity Group, Month-on-Month
At the national level, prices of consumer items went up at a slower pace of 0.1 percent in July from 0.5 percent in June. A decline was seen in housing, water, electricity, gas and other fuels index at -0.2 percent from 0.7 percent. Moreover, uptick in food and non-alcoholic beverages index decelerated to 0.1 percent from 0.2 percent; alcoholic beverages and tobacco and education, 0.2 percent from 0.8 percent and 4.3 percent, respectively; furnishing, household equipment and routine maintenance of the house and restaurants and miscellaneous goods and services, 0.2 percent from 0.3 percent. The communication index had zero growth while the rest of the commodity groups moved up at higher rates.
The index for rice in the Philippines dropped by -0.3 percent and in NCR, -2.5 percent due to the continued downward price adjustment in NFA rice. On the contrary, higher prices of rice in seven regions slightly pushed up the group’s index in AONCR to 0.1 percent, slower than the 0.3 percent growth last month. The highest monthly rate of 1.3 percent was posted in Caraga.
Upward adjustments in the prices of milk, cheese and eggs caused a 0.2 percent growth in the group’s index in the three areas.
Uptick in the prices of cooking oil in many regions including NCR primarily raised the oils and fats index in the Philippines by 0.6 percent; NCR, 1.2 percent; and AONCR, 0.5 percent. These were however, slower than their corresponding last month’s rates of 1.4 percent, 3.0 percent and 0.9 percent.
The weather disturbances experienced during the month adversely affected the supply of vegetables in the markets, thus, raising their prices. Prices of vegetables particularly tomatoes, bitter gourd, eggplant, cabbage and onions were notably higher in Luzon areas compared to Visayas and Mindanao. The increase in the vegetables index was higher in the Philippines and AONCR at 2.7 percent and 3.0 percent from their respective last month’s rates of 0.1 percent and -0.6 percent. In NCR, the increment in the vegetables index was slower at 1.2 percent from 4.0 percent.
Sufficient supply of sugar lowered its prices nationwide. Thus, the index of sugar, jam, honey, chocolate and confectionery in the three areas further declined during the month: Philippines, -4.1 percent from -3.3 percent; NCR, -3.6 percent from -2.0 percent; AONCR, -4.2 percent from -3.5 percent.
The index for food products not elsewhere classified went up by 0.4 percent in the Philippines and AONCR and 0.8 percent in NCR. This was brought about by higher prices of selected sauces, condiments and seasonings in many regions including NCR.
With higher charges for sewing of clothing and repair of footwear and price increments in clothing items and footwear in NCR and in many provinces, the index for clothing and footwear in the Philippines went up by 0.7 percent; NCR, 1.8 percent; and AONCR, 0.3 percent.
Lower charges for electricity rates in selected regions including NCR and reductions in the prices of LPG nationwide pushed down the index for housing, water, electricity, gas and other fuels in the Philippines by -0.2 percent; NCR, -0.7 percent; and AONCR, -0.1 percent.
Higher charges for selected medical and dental services in NCR and in some regions effected the 0.5 percent growth in the health index in the Philippines; 1.3 percent in NCR; and 0.2 percent in AONCR.
Prices of spare parts and accessories for personal transport equipment in some regions generally climbed up during the month. Moreover, higher charges for repair of personal transport equipment were also noticed in selected regions including NCR. These factors raised the transport index in the Philippines and AONCR by 0.2 percent and in NCR, 0.1 percent.
The index for restaurants and miscellaneous goods and services rose by 0.2 percent in the Philippines and AONCR due to uptick in prices of selected items for personal care and effects in some regions. Meanwhile, the group’s index in NCR had a zero growth during the month mainly due to the stable prices of meals eaten outside the home.
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
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