Date Released: September 6, 2011
SUMMARY INFLATION REPORT
CONSUMER PRICE INDEX
(2006=100)
AUGUST AND JULY 2011
Year-on-Year Inflation Rates, All Items |
|||
| Aug 2011 | Jul 2011 | Year-to-date | |
| Philippines | 4.7 | 5.1 | 4.8 |
| NCR | 3.3 | 4.0 | 4.0 |
| AONCR | 5.1 | 5.3 | 5.0 |
The country’s year-on-year headline inflation continued to move up at a slower rate of 4.7 percent in August from 5.1 percent in July. It resulted from the continued deceleration in the annual increment in the heavily weighted food and non-alcoholic beverages index. Slowdowns in the indices of clothing and footwear; housing, water, electricity, gas and other fuels; recreation and culture; and education and a negative annual change in communication index also contributed to the downtrend. Inflation a year ago was 4.0 percent.
Similarly, annual inflation in NCR eased to 3.3 percent in August from 4.0 percent in July. This was effected by the lower annual movements in food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; and transport indices. A negative annual change was also noticed in communication index.
Annual inflation in Areas Outside the National Capital Region (AONCR) slowed to 5.1 percent in August from 5.3 percent in July. This was attributed to the slower annual adjustments in food and non-alcoholic beverages; clothing and footwear; and education indices and to the negative annual rate in the communication index.
Year-on-Year Inflation Rates in the Philippines, All Items January 2007 - August 2011 |
|||||
Month |
Year |
||||
| 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 | 4.7 |
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 |
||
| Aug 2011 | Jul 2011 | |
| Philippines | 0.1 | 0.1 |
| NCR | - 0.2 | - 0.2 |
| AONCR | 0.2 | 0.2 |
The month-on-month inflation inched up by 0.1 percent in August, the same rate recorded in July. Higher electricity rates and general upward price adjustments in alcoholic beverages, cigarettes and meals eaten outside the home were posted during the month.
CONSUMER PRICE INDEX
(2006=100)
AUGUST 2011
By Region, Year-on-Year
The annual inflation in NCR slowed down to 3.3 percent in August from 4.0 percent in July.
Likewise, annual inflation AONCR at 5.1 percent in August was slower than the 5.3 percent growth in July as ten regions recorded lower inflation rates. The lowest annual rate remained in CAR at 2.7 percent while the highest inflation was still in ARMM at 7.6 percent.
By Commodity Group, Year-on-Year
The annual rate in the communication index in the Philippines further decreased to -0.4 percent in August from -0.3 percent in July. Moreover, the annual increment in the heavily weighted food and non-alcoholic beverages index was slower at 5.1 percent in August from 5.7 percent in July; clothing and footwear, 3.8 percent from 4.2 percent; housing, water, electricity, gas, and other fuels, 5.1 percent from 5.4 percent; recreation and culture, 1.5 percent from 1.6 percent; and education, 5.1 percent from 5.2 percent. The rest of the commodity groups have either higher rates or remained at its July rate.
The annual hike in the food alone index at the national level continued at lower rate of 5.3 percent in August from 5.9 percent in July.
A negative annual rate was noted in sugar, jam, honey, chocolate and confectionery index at -6.3 percent in August from 2.7 percent in July. In addition, the annual gain in rice index further slid to 4.0 percent from 4.6 percent; oils and fats, 35.8 percent from 37.4 percent; fruits, 5.7 percent from 5.9 percent; vegetables, 7.8 percent from 10.7 percent; and food products not elsewhere classified, 3.8 percent from 4.0 percent.
The rest of the food groups recorded either higher annual hikes or maintained its last month’s rate.
In NCR, the annual adjustment in communication index further decreased to -0.9 percent in August from -0.3 percent in July. Moreover, slower annual uptick was registered in the food and non-alcoholic beverages index at 3.8 percent from 5.0 percent; alcoholic beverages and tobacco, 2.8 percent from 3.0 percent; clothing and footwear and housing, water, electricity, gas and other fuels, 3.1 percent from 4.0 percent and 4.1 percent, respectively; and transport, 7.2 percent from 7.4 percent. On the other hand, the annual increase in restaurants and miscellaneous goods and services index was higher at 3.0 percent from 2.9 percent while a zero annual growth was posted in recreation and culture index from 0.3 percent in July. The rest of the commodity groups remained at their corresponding July rates.
The annual inflation for food alone index in NCR decelerated to 4.0 percent in August from 5.3 percent in July as the annual rates posted in all the food groups were either negative or slower compared to July with some groups recording negative rates.
In AONCR, the annual change in communication index remained at its July figure of -0.2 percent. Slower annual increments were observed in food and non-alcoholic beverages index at 5.3 percent in August from 5.8 percent in July; clothing and footwear, 4.0 percent from 4.3 percent; and education, 5.5 percent from 5.6 percent. Meanwhile, the rest of the commodity groups either registered higher annual rates or moved at their corresponding July rates.
The food alone index in AONCR continued to move at a slower pace of 5.5 percent in August from 6.0 percent in July.
The annual rate of sugar, jam, honey, chocolate and confectionery index went down to -7.4 percent in August from 2.1 percent in July.
The annual increment in the rice index further slipped to 4.6 percent in August from 4.9 percent in July. Ten regions have slower annual rates with the biggest decrease of 2.9 percentage points seen in Davao (5.4% from 8.3%).
The annual gain in oils and fats index eased to 31.8 percent from 33.4 percent; vegetables, 7.7 percent from 10.5 percent; and food products, not elsewhere classified, 4.3 percent from 4.4 percent. Meanwhile, the rest of the food groups have higher annual rates and same previous month’s rates.
By Region, Month-on-Month
Consumer prices in NCR continued to post a negative rate of -0.2 percent in August as the heavily weighted food and non-alcoholic beverages index further decreased to -0.6 percent from -0.2 percent. A 0.2 percent drop was also registered in transport, communication and recreation and culture indexes. Moreover, the monthly gain in health index slowed down to 0.1 percent from 1.3 percent. Meanwhile, increases in housing, water, electricity, gas and other fuels and restaurants and miscellaneous goods and services indexes were correspondingly higher at 0.2 percent and 0.1 percent from their respective last month’s rates of -0.7 percent and zero growth. The rest of the commodity groups have zero growth during the month.
Prices of consumer items in AONCR generally increased by 0.2 percent in August, the same rate posted in July. A higher monthly gain was recorded in alcoholic beverages and tobacco index at 0.4 percent from 0.3 percent; housing, water, electricity, gas and other fuels, 0.2 percent from -0.1 percent; and restaurants and miscellaneous goods and services, 0.3 percent from 0.2 percent. However, the food and non-alcoholic beverages index had a slower monthly increment at 0.1 percent from 0.2 percent; clothing and footwear and furnishing, household equipment and routine maintenance of the house, 0.2 percent from 0.3 percent. The rest of the commodity groups remained at their previous month’s rates or have zero growth.
Higher monthly growth rates were seen in seven regions. The highest rate at 0.6 percent was seen in Western Visayas while the lowest was in Ilocos at -0.4 percent.
Among the three big areas of the country, price upticks in consumer items in Visayas were faster compared to Luzon and Mindanao areas.
By Commodity Group, Month-on-Month
Prices of consumer items at the national level moved up at its July rate of 0.1 percent. Higher rates were registered in alcoholic beverages and tobacco and restaurants, miscellaneous goods and services indexes at 0.3 percent in August from 0.2 percent in July; and housing, water, electricity, gas and other fuels, 0.2 percent from -0.2 percent. The food and non-alcoholic beverages, communication and education indexes have zero growth while the rest of the commodity groups increased at slower rates.
The stormy weather condition that was experienced during the month in many regions brought about by typhoon “Juaning” constrained fishermen to do their usual fishing trips. This limited supply of selected fish species in the markets. Thus, the fish index in the Philippines and AONCR picked up by 1.0 percent from their corresponding last month’s rates of 0.1 percent and zero growth. The increment in the prices of fish in NCR however improved to 0.3 percent from 0.4 percent last month as price reductions were noticed in selected fish species and sea foods such as hasa-hasa, lapu-lapu, sapsap, shrimps and crabs in the area.
The upward price adjustments of off-season fresh fruits in many regions including NCR primarily raised the fruits index in the Philippines by 1.0 percent from 0.3 percent and AONCR, 1.1 percent from 0.2 percent. Meanwhile, the fruits index In NCR had a lower monthly growth of 0.4 percent from 0.8 percent.
The price of corn in NCR went up by 2.0 percent from -0.2 percent due to its low supply in the market. Likewise, corn prices in AONCR and in the Philippines correspondingly grew by 1.4 percent and 1.5 percent from 0.5 percent.
With price hikes in milk and milk products, the index for milk, cheese and egg in the Philippines and AONCR went up by 0.2 percent. On the other hand, the group’s index in NCR had a zero growth from 0.2 percent as prices of milk and cheese generally remained stable during the month.
The continued sufficient supply of sugar nationwide resulted to a negative monthly rate in the sugar, jam, honey, chocolate and confectionery index in the three areas: Philippines, -4.7 percent; NCR, -2.7 percent; and AONCR, -5.1 percent.
The vegetables’ index in the Philippines dropped by -0.9 percent from 2.7 percent; NCR, -2.4 percent from 1.2 percent; and AONCR, -0.6 percent from 3.0 percent. Price declines in vegetables were due to its sufficient supply in the markets during the month.
The continued price decrease in NFA rice in NCR effected the -1.9 percent drop in its group’s index in August. Meanwhile, higher price add-ons in rice in seven regions raised the group’s index in AONCR by 0.3 percent from 0.1 percent and in the Philippines, 0.1 percent from -0.3 percent. The highest monthly rate of 1.6 percent was posted in Central Luzon.
The index for housing, water, electricity, gas and other fuels in the three areas picked up by 0.2 percent. This was mainly due to higher charges for electricity rates in selected regions including NCR. Increased prices of selected construction materials, firewood and charcoal in some regions were also noted during the month.
Increments in the prices of cigarettes and alcoholic beverages raised the alcoholic beverages and tobacco index in the Philippines by 0.3 percent and AONCR, 0.4 percent. Prices of alcoholic beverages and tobacco in NCR however generally remained stable as its group’s index still had a zero growth during the month.
Selected items for personal effects were priced higher in some regions including NCR. Moreover, prices of meals eaten outside the home also went up during the month in some provinces. Thus, the index for restaurants and miscellaneous goods and services in the Philippines and AONCR climbed by 0.3 percent and in NCR, 0.1 percent.
With price additions in selected medicines in many regions including NCR, the health index for the Philippines and AONCR gained 0.2 percent and in NCR, 0.1 percent.
The -0.2 percent drop in the transport index in NCR can be attributed to the general price declines in gasoline and diesel in the area. On the contrary, prices of gasoline and diesel in many regions went up during the month. Hence, the index for transport in AONCR rose by 0.2 percent. The national transport index posted a 0.1 percent growth during the month.
NOTE:
The first and second phase survey reports from Sulu were not received as of September 5, 2011.
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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