National annual average inflation went up

The annual average consumer price index (CPI) in 2011 was recorded at 126.1 for the Philippines, 120.9 for the National Capital Region (NCR) and 127.8 for areas outside NCR (AONCR).

The country’s annual average inflation rate picked up by 0.7 percentage point to 4.6 percent in 2011 from 3.9 percent in 2010. Higher annual average rates were registered in the indices for food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; transport; recreation and culture; education; and restaurant and miscellaneous goods and services. The highest annual average inflation during the year was observed in June and October at 5.2 percent while the lowest was in January at 4.0 percent.

Regional inflation generally picked up

The annual average inflation rate in NCR climbed to 4.0 percent in 2011 from 3.7 percent in 2010.

In AONCR, the annual average inflation likewise accelerated to 4.9 percent in 2011 from 3.8 percent in 2010.

Thirteen regions in AONCR registered higher annual average growth rates with Region III (Central Luzon) posting the biggest increase of 2.4 percentage points (5.2% from 2.8%) followed by Region IX (Zamboanga Peninsula) at 2.2 percentage points (6.1% from 3.9%). The highest annual average growth was observed in ARMM at 6.9 percent while the lowest rate was noted in CAR (Cordillera Administrative Region) at 3.2 percent.

By Commodity Group

Highest inflation was recorded in the transport index

          Among the commodity groups, the highest annual average growth at the national level was posted in the transport index at 6.0 percent in 2011 from 3.8 percent in 2010. The annual average inflation of the heavily-weighted food and non-alcoholic beverages index likewise went up to 5.5 percent from 4.0 percent; alcoholic beverages and tobacco index, 5.3 percent from 3.0 percent; clothing and footwear index, 3.7 percent from 2.7 percent; recreation and culture index, 1.4 percent from 0.6 percent; education index, 4.7 percent from 4.5 percent; and restaurant and miscellaneous goods and services index, 2.8 percent from 2.6 percent. On the other hand, the annual average inflation in the health index eased to 3.2 percent from 3.8 percent while the communication index had a negative annual average rate at -0.2 percent from -1.1 percent. Those for housing, water, electricity, gas, and other fuels and furnishings, household equipment and routine maintenance of the house indices remained at 5.1 percent and 2.5 percent, respectively.

          In NCR, annual average inflation for food and non-alcoholic beverages index also picked up to 4.6 percent in 2011 from 2.9 percent in 2010; alcoholic beverages and tobacco index, 2.8 percent from 2.3 percent; transport index, 6.3 percent from 4.7 percent; education index, 3.8 percent from 3.2 percent; and restaurant and miscellaneous goods and services index, 3.1 percent from 1.2 percent. The rest of the commodity groups posted either slower annual average increases or negative rate during the period.

          Similarly, the annual average change in the heavily-weighted food and non-alcoholic beverages index in AONCR grew by 5.6 percent in 2011 from 4.2 percent in 2010; alcoholic beverages and tobacco index, 5.8 percent from 3.2 percent; clothing and footwear index, 3.8 percent from 2.4 percent; housing, water, electricity, gas and other fuels index, 5.5 percent from 4.5 percent; furnishings, household equipment and routine maintenance of the house index, 3.0 percent from 2.7 percent; transport index, 6.0 percent from 3.5 percent; recreation and culture index, 1.7 percent from 0.6 percent; and education index, 5.0 percent from 4.8 percent. The annual average rates in the rest of the commodity groups however either decelerated or were negative.

Annual upward movements in food prices were generally observed

          The annual average inflation of the rice index in AONCR rose to 4.4 percent in 2011 from 3.2 percent in 2010 with the highest annual average growth noted in Region VIII (Eastern Visayas) at 6.7 percent. Meanwhile, the annual average hike in the rice index in NCR slowed down to 2.7 percent from 3.7 percent. The price of NFA rice generally decreased during the year from an average price of 25.23 pesos per kilogram in 2010 to 23.61 pesos per kilogram in 2011. At the national level, the annual average change of the group went up to 4.1 percent from 3.3 percent.

          With all the regions in AONCR except ARMM posting positive annual average rates, the corn index in the area accelerated to 8.2 percent from -1.8 percent. Eight regions in AONCR registered double-digit annual growths with Region XI (Davao) registering the highest inflation at 14.7 percent from -3.0 percent. The decrease in the production of corn was brought about by the series of typhoons that hit the country during the second half of the year. On the contrary, the group’s index in NCR dropped by -5.5 percent from 22.3 percent. At the national level, the corn index jumped 7.7 percent from -1.0 percent.

          The sufficient supply of chicken in the markets generally observed during the period resulted to the slower annual increments in the meat index in the three areas: Philippines, 2.2 percent in 2011 from 4.2 percent in 2010, NCR, 2.0 percent from 3.1 percent, and AONCR, 2.4 percent from 4.5 percent. All the regions posted lower annual gains except in Region IV-A (CALABARZON). The biggest slowdown of 10.3 percentage points (1.1% from 11.4%) was in Region IX.

          Reduced fishing trips due to high cost of fuel and occurrence of typhoons particularly during the third quarter of 2011 resulted to the insufficient supply of fish in the markets. Thus, the annual average changes of the fish index in the Philippines climbed to 7.2 percent in 2011 from 3.9 percent in 2010 and AONCR, 7.7 percent from 3.8 percent. Meanwhile, the average annual growth of the fish index in NCR eased to 3.7 percent from 4.2 percent.

          Upward annual price adjustments in milk and cheese products were seen in many regions including NCR. Moreover, decreases in the number of chicken layers lowered the production of eggs thereby limiting supplies in the markets. Thus, the annual average growth of the milk, cheese and eggs index in the Philippines picked up to 2.7 percent from 2.4 percent; NCR, 2.0 percent from 1.5 percent; and AONCR, 2.9 percent from 2.5 percent.

          The acceleration in the prices of cooking oil during the year pushed the oils and fats index in the three areas to double-digit annual growth rates: Philippines and AONCR, 30.0 percent and 26.7 percent, respectively from 3.6 percent and NCR, 43.0 percent from 3.2 percent.

          The annual average inflation in the fruit index in AONCR went up to 7.2 percent in 2011 compared to 2.6 percent in 2010. Fourteen (14) regions in AONCR registered higher annual growths with Region IV-B (MIMAROPA), Region IX, Region XI and ARMM recording double-digit annual hikes. The production of fruits generally declined in MIMAROPA because of the replanting activities done in the area and aging trees were being replaced with new plantings to boost future production levels. In addition, there were lesser harvests in Cagayan Valley, CALABARZON and Zamboanga Peninsula during the third quarter due to aborted flowering of calamansi trees because of the continued rainfall. The land conversion in Davao City and unfavorable weather conditions in Davao region adversely affected the production of fruits in the area. Central Visayas, the main source of mango in the 3rd quarter, reported a decrease in production due to lesser flower induction activities. The rainy weather during the cropping period badly affected flowering and fruiting stages of mango and prevented farmers to conduct flower induction. The same reasons were reported in Caraga and ARMM. In NCR, the annual growth in the fruits index also went up but at a slower rate of 4.4 percent from 4.9 percent. The national annual average index gained 6.7 percent from 3.0 percent.

          Double-digit annual average inflation was posted in the vegetables index in the Philippines at 12.8 percent in 2011 from 2.6 percent in 2010; NCR, 15.1 percent from -4.0 percent; and AONCR, 12.3 percent from 3.9 percent. The stormy weather conditions brought about by the effects of typhoons Mina, Juaning, Pedring and Quiel during the second half of the year reduced volume of deliveries of vegetables in the markets particularly those low-land grown vegetables, thereby causing their prices to increase. Among the regions in AONCR, the highest annual rate of 20.7 percent was noticed in Region X (Northern Mindanao).

          The downward price movements in sugar from August to December in many provinces mainly pulled down the annual average inflation to a single-digit figure in sugar, jam, honey, chocolate and confectionery index in the three areas from a double-digit inflation in 2010: Philippines, 3.0 percent in 2011 from 32.6 percent in 2010; NCR, 5.8 percent from 18.7 percent; and AONCR, 2.6 percent from 34.9 percent.

          The annual average inflation of the food products not elsewhere classified index in 2011 increased by 4.1 percent in the Philippines; 2.3 percent in NCR; and 4.5 percent in AONCR due to higher prices of selected condiments and seasonings. These were however, slower than their respective annual average inflation in 2010 at 5.1 percent, 2.9 percent and 5.6 percent.

Higher annual average inflation in most of the commodity groups were registered in the regions.

          Except in CAR and Region II (Cagayan Valley), the annual average gains in the food and non-alcoholic beverages index were higher in all the regions including NCR. The highest annual average rate was in Region IX at 8.7 percent while the lowest was in Region I (Ilocos) at 3.7 percent.

          Among the food groups, the highest annual average inflation was registered in oils and fats index at 30.0 percent in the Philippines, 43.0 percent in NCR and 26.7 percent in AONCR. On the other hand, the lowest was posted in the meat index at 2.2 percent in the Philippines; 2.0 in NCR; and 2.4 percent in AONCR.

          Upward annual price movements in cigarettes and alcoholic beverages pulled up the average inflation of alcoholic beverages and tobacco index in the Philippines by 5.3 percent in 2011 from 3.0 percent in 2010; NCR, 2.8 percent from 2.3 percent; and AONCR, 5.8 percent from 3.2 percent. Among the regions in AONCR, the highest annual average rate in the group’s index was in ARMM at 9.4 percent followed by Region VI (Western Visayas) and Region IX, both at 8.3 percent. Meanwhile, the lowest annual average rate of 3.5 percent was in Region VIII.

          Price hikes in selected ready-made apparel and footwear were noted in many regions. Thus, the annual average inflation in the clothing and footwear index in AONCR went up to 3.8 percent from 2.4 percent. The highest rate was in Region X (Northern Mindanao) at 6.6 percent while the lowest was in Region VIII at 0.7 percent. Meanwhile, annual average growth in NCR remained at 3.3 percent. In the Philippines, the annual uptick was 3.7 percent from 2.7 percent.

          Higher charges in electricity rates and price gains in LPG and kerosene were generally noted in many regions including NCR. Increments in the prices of selected construction materials were also observed in some regions. These factors contributed to an annual growth of 5.5 percent in the housing, water, electricity, gas and other fuels index in AONCR. In NCR, the annual average rate in the group’s index also increased but at a slower pace of 4.4 percent from 6.6 percent. At the national level, the annual average rate in the group’s index during the year remained at 5.1 percent.

          Slower annual price hikes in selected items for furniture and fixtures together with household appliances, resulted to the deceleration in the annual average growth rate of furnishings, household equipment and routine maintenance of the house index in NCR at 1.2 percent in 2011 from 1.9 percent in 2010. However, in AONCR the annual average increment of the group’s index went up to 3.0 percent in 2011 from 2.7 percent in 2010. The highest annual increase of 5.7 percent was seen in Region IX while the lowest rate was in Region I and Region VIII at 1.0 percent. The annual average change of the group’s index in the Philippines remained at 2.5 percent.

          The slowdown in the annual price gains of selected items for medical products, appliances and equipment together with the slower annual increase in the charges for medical and hospital services effected improvements in the annual average inflation for health index in the Philippines, (3.2% from 3.8%); NCR, (3.6% from 4.1%); and AONCR (3.1% from 3.7%). The lowest annual growth of 1.4 percent was in Region VIII while the highest was in Region X at 7.1 percent.

          Annual average inflation in the transport index generally went up in the three areas during the year: Philippines and AONCR, 6.0 percent in 2011 from their corresponding rates of 3.8 percent and 3.5 percent in 2010 and NCR, 6.3 percent from 4.7 percent. These can be attributed to the general price upticks in gasoline, diesel and engine oil nationwide. Increased air and land transportation fares in selected regions including NCR in February also contributed to the uptrend. Fourteen (14) regions including NCR posted higher annual average inflation rates in 2011 with Region IV-A registering the biggest jump of 5.8 percentage points (8.4% from 2.6%). Meanwhile, the lowest rate was in Region VIII at 3.4 percent.

          The annual average rate in the communication index was still negative in the Philippines at -0.2 percent in 2011 from -1.1 percent in 2010; NCR, -0.4 percent from -1.4 percent and AONCR, -0.2 percent from -0.9 percent. This was due to the downward price adjustments in mobile cellular phones in most of the regions including NCR. The lowest annual average rate during the year at -1.7 percent was in Region IX while the highest rate of 1.1 percent was in Caraga.

          On an annual basis, upticks were noticed in the prices of selected audio-visual, photographic and information processing equipment and books. These resulted to higher average annual inflation in recreation and culture index in AONCR at 1.7 percent in 2011 from 0.6 percent last year. The biggest annual gain of 3.4 percentage points (4.6% from 1.2%) was noticed in Region III. In NCR, the annual average rate slowed down to 0.6 percent from 0.7 percent. The national index had a 1.4 percent annual average growth in 2011 compared to 0.6 percent in 2010.

          Upward price adjustments in school tuition fees in selected regions including NCR pushed up the annual average inflation in education index in the Philippines at 4.7 percent in 2011 from 4.5 percent in 2010; NCR, 3.8 percent from 3.2 percent; and AONCR, 5.0 percent from 4.8 percent. Region III had the highest annual average rate during the year at 8.4 percent while Region II had the lowest annual average growth of 0.5 percent.

          The annual average inflation of restaurant and miscellaneous goods and services index in NCR grew by 3.1 percent in 2011 from 1.2 percent in 2010. This was due to price increases in meals eaten outside the home and some items for personal care and effects. On the other hand, the annual average growth in AONCR eased to 2.8 percent from 3.1 percent. The biggest slowdown of 2.8 percentage points (1.1% from 3.9%) was in CAR. At the national level, the group’s index picked up to 2.8 percent from 2.6 percent.

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Industry and Trade Statistics Department
National Statistics Office
Manila

Page last updated:
May 11, 2012