- The country’s annual average inflation slowed down
The annual average consumer price index (CPI) in 2012 was pegged at 130.1 for the Philippines, 124.4 for the National Capital Region (NCR) and 131.9 for areas outside NCR (AONCR).
The national annual average inflation rate decelerated to 3.2 percent in 2012 from 4.6 percent in 2011. It resulted from the slowdowns in the annual average rates of the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; health; transport; and education. The lowest annual average inflation during the year was observed in March at 2.6 percent while the highest was in January at 4.0 percent.
- Regional inflation also slowed down
The annual average inflation rate in NCR eased to 2.9 percent in 2012 from 4.0 percent in 2011.
In AONCR, the annual average inflation likewise improved to 3.2 percent in 2012 from 4.9 percent in 2011.
Fourteen regions in AONCR registered slower annual average growth rates with ARMM posting the biggest deceleration of 3.7 percentage points (3.1% from 6.8%) followed by Region XI (Davao) at 3.5 percentage points (2.5% from 6.0%). The lowest annual average inflation was observed in Region I (Ilocos) at 1.6 percent. On the other hand, the highest annual average inflation was recorded in Region VII (Central Visayas) at 5.1 percent.
By Commodity Group
- Transport recorded the biggest slowdown among the commodity groups
Compared to a year ago level, the transport index in the Philippines had the biggest decrease of 3.7 percentage points in its annual average growth to 2.3 percent in 2012 from 6.0 percent in 2011. Similarly, the annual average inflation of the heavily-weighted food and non-alcoholic beverages index slipped to 2.3 percent from 5.5 percent; alcoholic beverages and tobacco index, 5.0 percent from 5.3 percent; housing, water, electricity, gas and other fuels index, 4.6 percent from 5.2 percent; health index, 3.1 percent from 3.2 percent; and education index, 4.6 percent from 4.7 percent. The annual average adjustment in the clothing and footwear index however, was higher at 4.6 percent from 3.7 percent; furnishing, household equipment and routine maintenance of the house index, 3.7 percent from 2.5 percent; recreation and culture index, 2.6 percent from 1.4 percent; and restaurant and miscellaneous goods and services index, 3.2 percent from 2.8 percent. From a rate of -0.2 percent last year, the annual average inflation for communication index inched up by 0.1 percent.
In NCR, the annual average gain for food and non-alcoholic beverages index slowed down to 1.8 percent in 2012 from 4.6 percent in 2011; housing, water, electricity, gas, and other fuels index, 3.7 percent from 4.3 percent; health index, 2.7 percent from 3.6 percent; transport index, 1.0 percent from 6.1 percent; and education index, 3.4 percent from 3.8 percent. The rest of the commodity groups had higher annual average rates in 2012.
The annual average increase in food and non-alcoholic beverages index in AONCR decelerated to 2.5 percent in 2012 from 5.6 percent in 2011; alcoholic beverages and tobacco index, 5.1 percent from 5.8 percent; housing, water, electricity, gas and other fuels index, 4.9 percent from 5.5 percent; transport index, 2.7 percent from 6.0 percent; and education index, 4.9 percent from 5.0 percent. Meanwhile, the rest of the commodity groups either registered higher annual increments or retained their previous year’s rate with the communication index recording a zero percent average rate during the year from -0.2 percent.
- Annual mark-ups in the prices of food items generally improved in 2012 with cooking oil and sugar registering annual price declines
With enough supply of rice in the markets particularly during the harvest months of August, September and October, the annual average hike in the rice index in the Philippines dipped to 0.6 percent in 2012 from 4.1 percent in 2011 and in AONCR, 0.8 percent from 4.4 percent. Except Western Visayas and Zamboanga Peninsula, the rice index in all the regions either posted slower annual average rates or had annual average declines. The lowest annual average movement for the index during the year was in Region III (Central Luzon) at -2.4 percent. The annual change in the group’s index in NCR likewise fell by 1.5 percent from 2.7 percent.
The annual average increase in the corn index in AONCR slid to 6.2 percent in 2012 from 8.2 percent in 2011 and in the Philippines, 6.0 percent from 7.7 percent as all the regions except Central Visayas and Eastern Visayas had slower annual average gains with some regions having annual declines. The lowest annual average inflation was in ARMM at -4.5 percent. In NCR, the annual average inflation in the corn index however, went up to 2.9 percent from -5.5 percent.
Prices of chicken were generally lower in the first quarter of 2012. The mixed price movements of chicken, pork and beef from second quarter and onwards pulled down the annual average inflation of the meat index in the Philippines to 1.4 percent in 2012 from 2.2 percent in 2011; NCR, 1.6 percent from 2.0 percent; and AONCR, 1.3 percent from 2.3 percent. The lowest annual average inflation rate for the meat index during the year at -0.5 percent was registered in Region II (Cagayan Valley).
With higher prices of fish, the annual average inflation of the group’s index in the Philippines moved up by 6.6 percent during the year; AONCR, 6.9 percent; and NCR, 4.8 percent. The stormy weather conditions in August and the occurrence of typhoon “Pablo” in December limited the supplies of fish in the markets during these months, thereby pushing up their prices.
Price mark-ups in milk were noted in all the regions due to increments in the prices of tin can used in packing milk. This primarily triggered higher annual average inflation in milk, cheese and eggs index in the Philippines at 3.3 percent in 2012 from 2.7 percent in 2011; AONCR, 3.2 percent from 2.9 percent; and NCR, 3.6 percent from 2.0 percent. In addition, prices of eggs also generally went up during the year.
From a double-digit annual average inflation of 30.0 percent in the oils and fats index in 2011, the annual average growth of the group’s index in the Philippines fell by 0.9 percent in 2012; NCR, -1.4 percent from 43.0 percent; and AONCR, -0.8 percent from 26.7 percent. This was due to the series of price reductions in cooking oil during the year. The biggest annual drop of 42.4 percentage points (-6.4% from 36.0%) was noticed in Region III (Central Luzon).
The annual average inflation of the fruit index at the national level eased to 6.1 percent in 2012 from 6.7 percent in 2011 and in AONCR, 6.5 percent from 7.2 percent. Eleven regions in AONCR registered slower annual growths with Caraga having the biggest annual average decrease of 6.7 percentage points (1.9% from 8.6%). On the contrary, the annual average growth of the fruit index in NCR picked up by 4.6 percent from 4.4 percent.
The good weather conditions that favored the production of selected vegetables during the first and last quarters of the year brought abundant supplies in the markets thereby pushing down their prices. Hence, the annual average inflation of the vegetables index in the Philippines eased to 0.4 percent in 2012 from a double-digit growth of 12.8 percent in 2011 and in NCR, 1.9 percent from 15.1 percent. In AONCR, the vegetables index recorded a zero annual average rate from 12.3 percent due to the offsetting annual average adjustments among the regions. The lowest annual average change of -9.4 percent was in Region X (Northern Mindanao) while the highest was in CAR at 9.2 percent.
Cheaper prices of sugar in all the regions resulted to declines in the annual average rate of sugar, jam, honey, chocolate and confectionery index in the three areas: Philippines, -10.6 percent in 2012 from 3.0 percent in 2011; NCR, -10.1 percent from 5.8 percent; and AONCR, -10.7 percent from 2.6 percent.
The index for food products not elsewhere classified in the Philippines posted an annual average inflation of 2.6 percent in 2012; NCR, 1.4 percent; and AONCR, 2.7 percent as selected spices, condiments and seasonings were generally priced higher during the year. These were however, slower than their corresponding annual growths in 2011 at 4.1 percent, 2.3 percent and 4.5 percent.
- Annual average inflation of the heavily-weighted food and non-alcoholic beverages index and five other divisions of the CPI were slower in many regions.
The annual average change in the food and non-alcoholic beverages index in 2012 was slower in all the regions. The lowest annual average growth was in Region III at 1.2 percent while the highest was observed in Region VII at 4.6 percent.
Among the food groups, the lowest annual average change was posted in sugar, jam, honey, chocolate and confectionery index at -10.6 percent in the Philippines; -10.1 in NCR; and -10.7 percent in AONCR. On the other hand, the highest annual average inflation was registered in fish index at 6.6 percent in the Philippines; 4.8 percent in NCR; and 6.9 percent in AONCR.
The annual average inflation of alcoholic beverages and tobacco index in the Philippines and AONCR moved up at slower pace of 5.0 percent and 5.1 percent, respectively in 2012 from their corresponding last year’s annual average inflation of 5.3 percent and 5.8 percent. The lowest annual average rate in the group’s index in AONCR was in Region V at 2.8 percent while the highest at 8.2 percent was in Region X. On the other hand, the group’s index annual average growth in NCR increased to 3.9 percent from 2.8 percent. Alcoholic beverages and cigarettes were generally priced higher during the year.
Compared with 2011, the annual average growth of clothing and footwear index accelerated in the three areas in 2012: Philippines, 4.6 percent from 3.7 percent; NCR, 6.2 percent from 3.3 percent; and AONCR, 4.2 percent from 3.8 percent. Higher prices of clothing and footwear items were generally observed in many regions. The highest annual average rate was in Region III at 6.6 percent while the lowest was in Region I at 0.9 percent.
Higher charges in electricity rates and price hikes in LPG and kerosene were noted in all regions. Increments in rental rates and in prices of selected construction materials were also observed in some regions. All these factors contributed to an annual average growth of 4.9 percent during the year in the housing, water, electricity, gas and other fuels index in AONCR, a slowdown however, from its 2011 rate of 5.5 percent. Among the regions in AONCR, the highest annual average rate of 9.7 percent was in Caraga while the lowest at 1.5 percent was in Region I. In NCR, the group’s annual average inflation also moved up at 3.7 percent due to the increase in rental rates, higher prices of LPG and charges for electricity and water rates. This was however slower than its last year’s rate of 4.3 percent. The annual average growth in the national index also improved to 4.6 percent from 5.2 percent.
Upward adjustments in the prices of selected household appliances together with increased salary of household help in some regions effected higher annual average growth in furnishings, household equipment and routine maintenance of the house index in the three areas: Philippines, 3.7 percent from 2.5 percent; NCR, 3.2 percent from 1.2 percent; and AONCR, 3.9 percent from 3.0 percent. The highest annual average increase of 8.7 percent was seen in Region X while the lowest average rate was in Region I at 0.7 percent.
Prices of some medical products, appliances and equipment went up during the period. Higher charges for medical and hospital services were also noticed in selected regions. Thus, the health index annual average inflation in 2012 in the Philippines grew by 3.1 percent and in NCR, 2.7 percent. These were slower than their last year’s corresponding rates of 3.2 percent and 3.6 percent. In AONCR, price increases of these items resulted to an annual average rate of 3.1 percent in the group’s index, the same growth registered in 2011. The lowest annual average inflation of 1.5 percent was observed in CAR while the highest was in Caraga at 5.2 percent.
Lower price increases in gasoline and diesel nationwide resulted to slower annual average inflation of the transport index in the three areas: Philippines, 2.3 percent from 6.0 percent; NCR, 1.0 percent from 6.1 percent; and AONCR, 2.7 percent from 6.0 percent. Except for Region X, all the regions posted lower annual average growths with CAR registering the lowest rate of 1.2 percent. The highest annual average inflation during the year at 5.4 percent was registered in Region X.
Charges for internet access services and telephone rates went up in NCR. Thus, the annual average growth of communication index in NCR rose 0.3 percent in 2012 from -0.4 percent in 2011. On the other hand, the annual change in communication index in AONCR was zero percent in 2012 from -0.2 percent in 2011. Downward price adjustments in mobile cellular phones were recorded during the year. This was however offsetted by the higher annual changes in postal services and courier service related to parcels. The highest annual average rate during the year at 1.1 percent was noted in Region III while the lowest rate at -1.9 percent was in Region XII. The national index gained an annual average of 0.1 percent in 2012 compared to 0.2 percent decline in 2011.
On an annual basis, price upticks were generally noticed in school supplies, textbooks, newspapers and magazines. This factor raised the annual average inflation in recreation and culture index in AONCR to 2.2 percent in 2012 from 1.7 percent last year. The biggest annual gain of 6.0 percentage points (2.7% from -3.3%) was seen in Region II. In NCR, the annual average rate also climbed to 3.9 percent from 0.6 percent due to the increase in the admission fee in cinemas and higher prices of magazines. The group’s index at the national level picked up by 2.6 percent in 2012 from 1.4 percent in 2011.
Higher school tuition fees in all regions pushed up the annual average inflation of education index in the Philippines by 4.6 percent; NCR, 3.4 percent; and AONCR, 4.9 percent. These were however, slower than their corresponding 2011 annual average growths of 4.7 percent, 3.8 percent and 5.0 percent. The highest annual average growth in 2012 at 6.5 percent remained in Region III while Region I had the lowest annual average inflation at 2.5 percent.
The annual average inflation of restaurant and miscellaneous goods and services index in AONCR rose to 3.0 percent in 2012 from 2.8 percent in 2011. The biggest annual average jump of 3.4 percentage points (4.0% from 0.6%) was noted in Caraga. The annual average growth in NCR likewise grew by 3.7 percent in 2012 from 3.1 percent in 2011. The group’s national index inched up to 3.2 percent from 2.8 percent. This was brought about by the price mark-ups in selected items for personal care and effects together with the increased prices of meals eaten outside the home in most of the regions.
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NOTES:
- The following survey reports were not received during the year:
a. Northern Samar - second phase, January 2012
b. Davao Oriental - second phase, January 2012
c. Basilan – first and second phase, May 2012
d. Cagayan – second phase, August 2012
e. Zamboanga Sibugay – second phase, September 2012
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).
