National annual average inflation moved up

The annual average consumer price index (CPI) in 2010 was registered at 166.1 for the Philippines, 163.1 for the National Capital Region (NCR) and 167.3 for areas outside NCR (AONCR).

The overall annual average inflation rate went up by 0.6 percentage point to 3.8 percent in 2010 from 3.2 percent in 2009 as fuel, light, and water (FLW) and services index recorded higher annual average rates. The highest annual inflation during the year was observed in April at 4.5 percent while the lowest was in October at 2.7 percent.

Regional inflation generally slowed down

The annual average inflation rate in NCR rose to 4.0 percent in 2010 from 1.6 percent in 2009.

The annual average inflation in AONCR however decelerated to 3.7 percent in 2010 from 3.9 percent in 2009.

Nine regions in AONCR registered lower annual average growth rates with Region VIII (Eastern Visayas) posting the biggest deceleration of 2.5 percentage points (3.0% from 5.5%). The lowest annual average inflation rate in 2010 was noted in Region I (Ilocos) at 2.5 percent followed by Region VI (Western Visayas) at 2.9 percent while the highest was in ARMM at 6.0 percent.

By Commodity Group

Double-digit inflation was recorded in the FLW index

At the national level, a double-digit annual average growth was posted in the FLW index at 13.4 percent in 2010 from -2.6 percent in 2009. Moreover, the services index had a higher annual average rate at 4.4 percent from -0.2 percent. The rest of the commodity groups however, have slower annual average increments: Food, beverages and tobacco (FBT) index, 3.0 percent from 5.8 percent; clothing, 1.9 percent from 2.5 percent; housing and repairs (H&R), 1.7 percent from 2.9 percent; and miscellaneous items, 1.4 percent from 2.6 percent.

In NCR, annual average inflation for FLW index was also higher at 17.8 percent from -1.4 percent and services, 5.1 percent from -4.0 percent. Meanwhile, annual average gain in FBT index eased to 1.8 percent 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.

Higher annual average adjustments in AONCR were correspondingly posted in FLW and services index at 11.0 percent and 4.1 percent from -3.2 percent and 2.0 percent, respectively. Annual average inflation for FBT index however decelerated to 3.4 percent from 6.1 percent; 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.

Slower annual upward movements in food prices were generally observed

The annual average increase in rice index slowed down in the three areas: Philippines, 1.1 percent in 2010 from 7.5 percent in 2009; NCR, 0.3 percent from 3.7 percent; and AONCR, 1.2 percent from 8.1 percent. The sufficient supply of rice in the markets particularly during the harvest season of palay in May, June, October and November generally pulled down its prices during these periods. Moreover, the big volume of sales of the low-priced NFA rice in NCR markets in September contributed to the downtrend. The lowest annual average inflation for rice index at -1.0 percent was noted in Region I (Ilocos).

With thirteen regions posting negative and slower annual average rates, the corn index in the Philippines and AONCR correspondingly dropped by -1.8 percent and -2.0 percent in 2010 from 6.1 percent in 2009. Region X (Northern Mindanao) had the lowest inflation rate of -6.6 percent. On the contrary, the annual increment in corn index in NCR jumped to 15.2 percent from 6.1 percent.

The rise in the prices of flour and flour products raised the annual average inflation of the cereal preparations index in the Philippines by 3.2 percent; NCR, 2.0 percent; and AONCR, 3.7 percent. These were however, slower than their corresponding previous year’s annual average growths of 7.4 percent, 6.1 percent and 7.9 percent.

The annual increment in the dairy products index decelerated in the three areas: Philippines, 1.7 percent from 6.3 percent; NCR, 1.4 percent from 5.1; and AONCR, 1.9 percent from 6.7 percent. This was due to the deceleration in the upward annual price adjustments in the prices of milk and milk products.

Limited supply of eggs in the markets due to its lower production and decreases in the number of chicken layers raised the annual average growth of the eggs index in the Philippines at 2.7 percent; NCR, 1.0 percent; and AONCR, 3.3 percent. These were however, slower than their respective last year’s annual average rates at 6.8 percent, 7.5 percent and 6.5 percent.

The good weather conditions during the months of February to July favored fishermen in catching fish. This resulted to ample supply of fish in the markets. Thus, the annual average increment of the fish index in 2010 eased to 3.1 percent in the three areas compared to the 2009 annual average rates of 6.1 percent in the Philippines, 3.6 percent in NCR, and 6.6 percent in AONCR.

The change in climate experienced in June lowered the production of vegetables. Moreover, the lean month of June in the production of onions and tomatoes also limited their supply in the markets. Prices of vegetables were priced also higher in those areas affected by typhoon “Basyang” in July. The inclement weather brought by the effects of typhoon “Juan” in October and its adverse effects in November reduced volume of deliveries of vegetables particularly those low-land grown vegetables or those that go into “pinakbet” dish in NCR markets, thereby causing their prices to increase. On the other hand, prices of vegetables were lower during the months of January, February, March, September and December as deliveries in the markets more than filled the consumption requirements of the consumers. The sufficient supplies of fruits generally observed also contributed to the downtrend during these period. These mixed price trends pushed down the annual movement in the fruits and vegetables index in NCR by -3.2 percent from 7.8 percent. The annual average upward adjustment of the group’s index in the Philippines was also slower at 0.5 percent from 5.9 percent and in AONCR, 1.7 percent from 5.3 percent.

The ample supply of chicken in the markets generally observed during year primarily slowed down the annual average inflation for the meat index in the Philippines at 4.1 percent in 2010 from 5.4 percent in 2009, NCR, 2.8 percent from 4.8 percent, and AONCR, 4.6 percent from 5.8 percent. The biggest slowdown of 4.5 percentage points (2.7% from 7.2%) was registered in Region VI (Western Visayas). The same region also posted the lowest annual rate among the regions in AONCR.

Price mark-ups in sugar, cooking oil, and selected spices and seasonings triggered higher annual average inflation in the miscellaneous foods index in the Philippines at 6.4 percent in 2010 from 4.3 percent in 2009 and AONCR at 7.7 percent from 3.8 percent. In NCR, the group’s index moved up at a slower pace of 3.1 percent from 5.4 percent.

Improved annual average increments registered in all the commodity groups except in FLW and services index generally pulled down the regional inflation rates in 2010.

Except in Region XII (SOCCSKSARGEN), the annual gains in the FBT index were slower in all the regions including NCR. The lowest annual average growth in the group’s index at 1.4 percent was seen in Region I (Ilocos) while the highest was observed in ARMM at 6.0 percent.

Among the food groups, the lowest annual inflation was posted in corn index at -1.8 percent in the Philippines and -2.0 percent in AONCR. The highest annual average inflation however was registered in the miscellaneous foods index at 6.4 percent in the Philippines and 7.7 percent in AONCR. In NCR, the lowest annual rate of -3.2 percent was noted in fruits and vegetables index while the highest annual inflation was in corn index at 15.2 percent.

Slower annual price hikes in footwear and selected ready-made apparel pulled down the annual average inflation of the clothing index in the three areas: Philippines, 1.9 percent from 2.5 percent; NCR, 1.4 percent from 1.5 percent; and AONCR, 2.1 percent from 3.0 percent. Among the regions in AONCR, the lowest annual average rate in 2010 was in Region VIII (Eastern Visayas) at 0.6 percent while the highest was in ARMM at 4.3 percent.

Annual increases in the prices of selected construction materials and annual upward movements in rental rates generally slowed down during the year. Thus, the annual average growths in the H&R index in the Philippines and AONCR eased to 1.7 percent and 1.8 percent, respectively in 2010 from 2.9 percent in 2009 and in NCR, 1.6 percent from 2.8 percent. The lowest annual rate was observed in Region IX (Zamboanga Peninsula) at 0.4 percent while the highest annual growth was in Region IV-B (MIMAROPA) at 3.9 percent.

Higher charges in electricity rates and price hikes in LPG and kerosene raised the annual average of the FLW index in the three areas: Philippines, 13.4 percent from -2.6 percent; NCR, 17.8 percent from -1.4 percent; and AONCR, 11.0 percent from -3.2 percent. Among the regions in AONCR, the highest annual average rate of 18.4 percent was noted in ARMM with Region VII (Central Visayas) recording the biggest annual average gain of 21.3 percentage points (16.9% from -4.4%).

The annual average movement in the services index in the Philippines grew by 4.4 percent in 2010 from -0.2 percent in 2009; NCR, 5.1 percent from -4.0 percent; and AONCR, 4.1 percent from 2.0 percent. This was brought about by the acceleration in prices of gasoline and diesel nationwide and tuition fee hikes in selected regions. The biggest annual average increase of 6.3 percentage points (5.7% from -0.6%) was noticed in Region IV-A (CALABARZON). The same region also had highest annual average rate (5.7%) posted during the year.

Compared to 2009, slower annual price gains in selected items for household furnishings and equipment, household operations and personal care and effects resulted to deceleration in the annual average inflation for miscellaneous items index in the three areas: Philippines, 1.4 percent from 2.6 percent; NCR, 0.9 percent from 2.2 percent; and AONCR, 1.5 percent from 2.7 percent. The lowest annual growth of 0.3 percent was seen in Region VIII (Eastern Visayas) while the highest rate was observed in Region IV-B (MIMAROPA) at 2.7 percent.

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Industry and Trade Statistics Department
National Statistics Office
Manila

Page last updated:
April 29, 2011