• The Philippines’ year-on-year headline inflation inched up 2.6 percent in December 2016. It was registered at 2.5 percent last month and 1.5 percent in December 2015. This was primarily due to higher annual increment recorded in the heavily-weighted food and non-alcoholic beverages index. Higher annual rates posted in the indices of transport and recreation and culture also contributed to the uptrend. (Table 8)

• Similarly, inflation in NCR accelerated 2.7 percent in December 2016. It was 2.0 percent last month and 1.1 percent in December 2015. Higher annual gains were observed in the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; and restaurant and miscellaneous goods and services. Moreover, a positive annual growth was seen in the transport index after it registered negative annual rates since February 2016. The annual average inflation in the area was recorded at 1.2 percent in 2016. Last year, it was 1.0 percent.

• In Areas Outside NCR (AONCR), inflation was pegged at 2.6 percent in December. It was the same rate posted last month while in December 2015, inflation reached 1.5 percent. The indices for food and non-alcoholic beverages and transport exhibited higher annual mark-ups while slowdowns were noted in the indices of alcoholic beverages and tobacco; clothing and footwear; furnishing, household equipment and routine maintenance of the house; and health. Growths for the rest of the commodity groups remained at their previous month’s rates. The annual average inflation in the area picked up 1.9 percent in 2016. Its average rate in 2015 stood at 1.5 percent. (Table 6)

• The country’s month-on-month growth improved to 0.3 percent in December. Last month, it moved by 0.6 percent. Price mark-ups noted in food items such as rice, meat, fish and selected condiments and seasonings were tempered by the price reductions in corn, vegetables and sugar. Lower charges in electricity rates and downward price adjustments in LPG and selected construction materials in some provinces were also registered during the month.

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  CONSUMER PRICE INDEX
  (2006=100)
  DECEMBER 2016

By Region, Year-on-Year

• Inflation in NCR advanced 2.7 percent in December.

• AONCR, however, retained its November inflation figure of 2.6 percent. Eight regions exhibited higher annual rates during the month. Meanwhile, six regions had slower annual rates with Ilocos Region, CALABARZON and Davao Region maintaining their respective last month’s rates. The highest annual growth remained in Cagayan Valley at 4.9 percent while the lowest was still in CALABARZON at 1.5 percent. (Table 8)

• Among the regions in AONCR, the highest annual average inflation in 2016 at 3.2 percent was posted in Central Visayas and Davao Region while CALABARZON had the lowest average annual inflation at 0.9 percent.

By Commodity Group, Year-on-Year

• At the national level, higher annual increments were registered in the indices of food and non-alcoholic beverages at 3.6 percent in December; transport, 1.9 percent; and recreation and culture, 1.7 percent. The rest of the commodity groups either had slower annual add-ons or retained their previous month’s rate. (Table 8)

  The annual change of the food alone index in the Philippines accelerated to 3.7 percent in December 2016. Last month, it was pegged at 3.5 percent and in December 2015, 1.8 percent. (Table 13)

  Higher annual rates were seen in the indices of rice and other cereals, flour, cereal preparation, bread, pasta and other bakery products, both at 1.6 percent; meat, 1.8 percent; fish, 5.5 percent; and vegetables, 11.5 percent. That for food products not elsewhere classified rose 0.9 percent from -0.1 percent last month. The rest of the food groups either remained at their previous month’s rates or had slower annual mark-ups. (Table 10)

  The annual average inflation of the food alone index in the Philippines was 2.6 percent in 2016, the same rate recorded in 2015. (Table 13)

  Compared to 2015 average rates, the annual average hike in alcoholic beverages and tobacco index was higher at 5.7 percent; health index, 2.4 percent; recreation and culture index, 1.6 percent; and restaurant and miscellaneous goods and services index, 2.1 percent. Moreover, the annual average adjustments in the indices of transport and communication correspondingly went up 0.3 percent and 0.1 percent. On the other hand, the index for food and non-alcoholic beverages maintained its last year’s annual average growth of 2.5 percent while the index for housing, water, electricity, gas and other fuels still posted negative annual average rate at -0.2 percent. The rest of the commodity groups had lower annual average upticks in 2016. (Table 6)

• In NCR, the annual inflation in food and non-alcoholic beverages index jumped by 6.0 percent; alcoholic beverages and tobacco index, 5.9 percent; transport index, 2.1 percent; and restaurant and miscellaneous goods and services index, 1.5 percent. The other commodity groups retained their last month’s rates except for the index of housing, water, electricity, gas, and other fuels which continued to register a negative rate at -0.3 percent. (Table 8)

  • The annual movement of the food alone index in NCR accelerated to 6.3 percent. Last month, it was up by 5.2 percent and in December 2015, 2.1 percent. (Table 13)

  • The double-digit annual growth in corn index further expanded to 44.0 percent; fruits index, 17.7 percent; and vegetables index, 16.1 percent. A double-digit annual add-on was also observed in fish index at 11.5 percent. The rest of the food groups also exhibited faster annual increments except for the indices of rice and sugar, jam, honey, chocolate and confectionery. (Table 10)

  • The annual average growth of the food alone index in NCR leaped 3.7 percent in 2016. The rate was 2.4 percent a year ago. (Table 13)

  • From their 2015 rates, the annual average growth for food and non-alcoholic beverages index picked up 3.6 percent in 2016; alcoholic beverages and tobacco index, 3.9 percent; communication index, 0.2 percent; recreation and culture index, 2.8 percent; and restaurant and miscellaneous goods and services index, 1.1 percent. Those for the rest of the commodity groups were either slower or had negative annual average rates with the index for furnishing, household equipment and routine maintenance of the house retaining its previous year’s annual average growth of 1.0 percent. (Table 6)
    
• In AONCR, higher annual mark-ups were seen in the indices of food and non-alcoholic beverages and transport at 3.1 percent and 1.9 percent, respectively. The rest of the commodity groups either exhibited slower annual increases or remained at their last month’s rate with the index of communication recording a zero growth. (Table 8)

  • The annual change in the food alone index in AONCR further climbed by 3.2 percent in December. Its annual growth last month was 3.1 percent and in December 2015, 1.7 percent. (Table 13)

  • A higher annual gain was still noted in the rice index at 1.7 percent in December. Ten regions posted faster annual rates. Moreover, the annual adjustment in CALABARZON inched up 0.2 percent from -0.2 percent last month. The highest annual growth was seen in Bicol Region at 6.3 percent while the lowest remained in Western Visayas at -0.4 percent.

  • Faster annual add-on was noticed in the index of other cereals, flour, cereal preparation, bread, pasta and other bakery products at 1.2 percent in December; meat index, 1.4 percent; and fish index, 4.5 percent. In addition, the index for food products not elsewhere classified index posted a 0.4 percent annual increment from -0.4 percent last month. The rest of the food groups either had lower annual growths or retained their previous month’s rate except for the corn index which had an annual decrease of 0.5 percent. (Table 10)

  • The 2015 annual average growth of the food alone index in AONCR was 2.4 percent, slower than its 2015 rate of 2.7 percent. (Table 13)

  • Compared to their 2015 rates, the annual average mark-up in alcoholic beverages and tobacco index was higher at 6.0 percent in 2016; health index, 2.7 percent; recreation and culture index, 1.0 percent; and restaurant and miscellaneous goods and services index, 2.5 percent. From negative annual average rates in 2015; the indices of housing, water, electricity, gas and other fuels and transport moved up by 0.5 percent and communication, 0.1 percent. The annual average rates for the other commodity groups either decelerated or maintained their last year’s figures. (Table 6)

By Region, Month-on-Month

By Commodity Group, Month-on-Month

• At the national level, the rise in prices of consumer items slowed down to 0.3 percent in December. Improved monthly growths were registered in the indices of food and non-alcoholic beverages at 0.2 percent; alcoholic beverages and tobacco, 0.6 percent; and housing, water, electricity, gas, and other fuels, 0.3 percent. On the contrary, uptrends were seen in the indices of transport at 2.3 percent and recreation and culture and restaurant and miscellaneous goods and services, both at 0.2 percent. The rest of the commodity groups either moved at their last month’s rate or had zero growth. (Table 7)

  • The difficulty in catching fish due to bad weather conditions brought about by typhoon “Nina” limited the volume of fish supply in NCR. Bigger demand for fish products also resulted to price hikes particularly fresh fishes, shrimps and crabs. These factors resulted to the 4.8 percent growth in the group’s index in NCR. The fish index in AONCR also went up but at a slower pace of 1.0 percent. At the national level, the index picked up 1.6 percent.

  • The season of preparing for the Christmas and New Year’s celebrations saw upticks in the prices of fresh and canned meat. Hence, the index for meat advanced 0.8 percent in NCR and 0.2 percent in AONCR. For the Philippines, the meat index rose 0.4 percent.

  • The fruits index in NCR climbed 0.8 percent due to price hikes in lanzones, orange and pineapple. In AONCR, the monthly growth in the fruits index eased to 0.3 percent brought about by the mixed price trends of fruits observed among the regions. At the country level, the monthly growth of the group’s index decelerated to 0.4 percent.

  • Upward adjustments in the prices of selected spices, seasonings and condiments pushed up the index for food products not elsewhere classified in NCR by 1.5 percent. On the contrary, the group’s index dropped by 0.1 percent due to lower prices of some spices and condiments in many regions. The group’s index at the national level went up at a slower pace of 0.2 percent.

  • The rice index AONCR inched up 0.1 percent in December as 13 regions exhibited positive monthly rates. The highest month-on-month growth of 1.0 percent was registered in Bicol Region. However, the index for rice in NCR dropped by 0.3 percent as prices of NFA and commercial rice went down during the month. At the national level, the rice index rose 0.1 percent.

  • Increased supplies of vegetables in the markets pushed down their prices during the month. Ten regions had negative rates in vegetables index. Thus, the group’s index in AONCR contracted by 1.3 percent. In NCR, the increment in the vegetables index was slower at 0.2 percent. For the Philippines, the group’s index declined by 1.1 percent. (Table 9)

• Double-digit monthly add-ons in air and ship fares and general upward price adjustments in gasoline and diesel in most of the regions raised the transport index in NCR by 2.4 percent and in AONCR, 2.3 percent. At the national level, the group’s index escalated by 2.3 percent.

• The index for housing, water, electricity, gas, and other fuels in NCR moved up by 0.2 percent due to higher charges in electricity rates and price hikes in LPG and kerosene. Prices of selected construction materials in the area also went up during the month. On the contrary, the growth of the group’s index in AONCR was slower at 0.3 percent. This was due to lower charges in electricity rates and downward price adjustments in LPG and some construction materials in selected provinces. For the Philippines, the group’s index picked up 0.3 percent.

• Higher prices of meals eaten outside the home in NCR and in some provinces were noted during the month. Prices of selected items for personal care and effects also went up in many regions. Thus, the index for restaurant and miscellaneous goods and services in NCR inched up 0.3 percent and in AONCR, 0.1 percent. At the national level, the group’s index climbed 0.2 percent. (Table 7)

Note:

CPIs and inflation rates by province and selected city are also available upon request at Philippine Statistics Authority, Economic Sector Statistics Service, Price Statistics Division (Telephone Number: 376-19-59).

(Sgd) LISA GRACE S. BERSALES, Ph.D.
National Statistician and Civil Registrar General