Summary Inflation Report Consumer Price Index (2000=100) : July 2007
JULY AND JUNE 2007
Year-on-Year Inflation Rates, All Items
The year-on-year headline inflation rate in the Philippines advanced to 2.6 percent in July from 2.3 percent in June as the inflation of fuel, light and water (FLW), food, beverages and tobacco (FBT) and services went up. Housing and repairs (H&R) retained its June rate. Clothing and miscellaneous items registered lower inflation rates compared to their previous month’s rates. Inflation a year ago was 6.4 percent.
Excluding selected food and energy items, core inflation increased by 0.5 percentage point, to 3.0 percent in July from 2.5 percent in June.
Similarly, inflation rate in the National Capital Region (NCR) accelerated to 2.7 percent in July from 1.9 percent in June primarily due to the 5.4 percentage points increment in the inflation of FLW. Higher rates of FBT and services also contributed to the upward movement.
Inflation rate in Areas Outside the National Capital Region (AONCR) remained at 2.6 percent, the rate posted in June.
Month-on-Month Inflation Rates, All Items
Compared with June, the general level of consumer prices increased to 0.8 percent in July from 0.6 percent in June as selected food items such as eggs, meat, milk, fruits and vegetables were priced higher during the month. Likewise, the upward price movements in electricity, kerosene, LPG and gasoline contributed to the uptrend. Higher hospital, dental and medical charges including those for personal services were also recorded in NCR.
CONSUMER PRICE INDEX
By Region, Year-on-Year
The inflation rate for NCR jumped by 0.8 percentage point to 2.7 percent in July from 1.9 percent in June.
Inflation rate in AONCR remained at last month’s rate of 2.6 percent. Four regions had higher inflation rates with CALABARZON registering the biggest jump of 0.7 percentage point. The Autonomous Region in Muslim Mindanao (ARMM) continued to post the highest rate of 4.7 percent while the lowest rate was still in Cordillera Administrative Region (CAR) at 1.1 percent.
By Commodity Group, Year-on-Year
Higher annual inflation rate was observed in FBT at 2.8 percent in July from 2.6 percent in June; FLW, 5.5 percent from 3.8 percent; and services, 2.1 percent from 2.0 percent. Meanwhile, annual price adjustments were slower in clothing at 2.3 percent from 2.4 percent and in miscellaneous at 1.5 percent from 1.6 percent while H&R moved at the same rate of 1.5 percent in June.
The inflation rate for food alone picked up to 2.8 percent in July from 2.6 percent in June.
Compared to their corresponding rates in June, annual price increments in July were faster in all the food groups except for fish whose annual inflation rate was slower at 2.5 percent from 2.9 percent. On an annual basis, the price increase in rice was higher at 1.7 percent in July from 1.6 percent in June; corn, 4.7 percent from 4.3 percent; cereal preparations, 3.6 percent from 3.3 percent; dairy products, 5.1 percent from 4.3 percent; eggs, 8.6 percent from 6.9 percent; fruits and vegetables, 3.2 percent from 3.1 percent; meat, 3.3 percent from 2.7 percent; and miscellaneous foods, 2.0 percent from 1.9 percent.
In NCR, inflation for FBT rose to 2.8 percent in July from 2.6 percent in June; FLW, 7.4 percent from 2.0 percent; and services, 1.8 percent from 1.4 percent. On the other hand, inflation rates for clothing and miscellaneous items correspondingly slid to 2.7 percent and 1.1 percent from 2.8 percent and 1.3 percent, respectively. Inflation for H&R remained at 1.3 percent.
Inflation for food alone in NCR went up to 2.8 percent in July from 2.6 percent in June.
Higher annual rate of price hike was seen in rice at 0.9 percent in July from 0.4 percent in June; corn, 3.0 percent from zero growth; cereal preparations, 3.6 percent from 3.2 percent; dairy products, 4.4 percent from 3.9 percent; eggs, 16.3 percent from 10.4 percent; meat, 5.9 percent from 4.1 percent; and miscellaneous foods, 2.4 percent from 2.2 percent. However, a slower annual rate of price addition was observed in fruits and vegetables at 1.0 percent from 4.3 percent. The annual price movement in fish further dropped to -2.4 percent from -1.7 percent.
In AONCR, inflation rate for FBT picked up to 2.8 percent in July from of 2.6 percent in June. On the contrary, inflation for FLW and miscellaneous items eased to 4.4 percent and 1.6 percent from 4.7 percent and 1.7 percent, respectively. The annual inflation for clothing and services moved at their previous month’s rate of 2.2 percent and H&R at 1.7 percent.
Inflation rate for food alone went up to 2.8 percent in July from 2.6 percent in June.
Measured from a year ago, a higher price gain was noted in rice at 1.8 percent in July from 1.7 percent in June. Eight regions recorded faster annual rates with Zamboanga Peninsula registering the biggest acceleration of 1.5 percentage points (1.2 percent from -0.3 percent), followed by Central Visayas at 1.0 percentage point (0.4 percent from -0.6 percent).
Moreover, higher annual increments were posted in the price of corn at 4.7 percent in July from 4.4 percent in June; cereal preparations, 3.6 percent from 3.4 percent; dairy products, 5.4 percent from 4.6 percent; eggs, 6.3 percent from 5.7 percent; fruits and vegetables, 3.8 percent from 2.8 percent; meat, 2.2 percent from 2.0 percent; and miscellaneous food items, 1.9 percent from 1.8 percent. The annual price movement was however slower in fish at 3.7 percent from 4.0 percent.
By Region, Month-on-Month
On a monthly basis, consumer prices in NCR generally increased by 1.5 percent in July from 0.8 percent in June as prices of the heavily weighted FBT items picked up by 1.0 percent from 0.5 percent. Prices of FLW items also advanced by 8.7 percent from 0.5 percent. On the other hand, uptick in the prices of services items slowed to 1.2 percent from 2.0 percent while price movement in clothing items remained at its June growth rate of 0.1 percent. Prices of H&R and miscellaneous items generally remained stable during the month as the groups’ index posted zero growth.
Price increments in AONCR were pegged at 0.4 percent in July. Rates for FLW and miscellaneous items correspondingly gained 1.1 percent and 0.2 percent in July from their respective June rates of 1.0 percent and 0.1 percent. However, increases in the prices of services items slowed down to 0.4 percent from 2.0 percent. Price adjustments in FBT, clothing and H&R were at their corresponding previous month’s rates of 0.4 percent, 0.2 percent, and 0.3 percent. The highest month-on-month inflation rate was noticed in CALABARZON at 0.8 percent while the lowest rate at zero growth was in Zamboanga Peninsula.
By Commodity Group, Month-on-Month
The month-on-month inflation rate of the country rose by 0.2 percentage point to 0.8 percent in July from 0.6 percent in June. This was brought about by the higher movement in the prices of FBT items (0.5% from 0.4%), clothing (0.2% from 0.1%), FLW (3.7% from 0.8%), and miscellaneous (0.2% from 0.1%). Meanwhile, price increments in H&R items remained at 0.2 percent and that of services slowed to 0.7 percent from 2.0 percent.
Insufficient supply of eggs brought about by its low production due to the warm weather condition pulled up its prices in the Philippines by 1.9 percent and in NCR by 6.5 percent. In AONCR, its index moved up by 0.5 percent, the same rate registered last month.
Prices of chicken were higher as warm temperatures experienced during the month caused stunted growths of chickens, hence affecting their volume of supply in the markets. Likewise, feeds were also sold at higher quotations. These factors mainly pushed up the meat index in the Philippines by 1.0 percent; NCR, 2.7 percent; and AONCR, 0.3 percent. Increases in the prices of beef, pork and canned meat in some regions including NCR also contributed to the uptrend.
Higher prices of imported raw materials for the manufacture of milk and milk products noted in July generally contributed to the 1.0 percent uptick in the dairy products index for the Philippines and AONCR and 0.9 percent in NCR.
Some vegetables delivered in various wet markets in AONCR were sold at higher prices due to its low production caused by the dry spell experienced in some parts of the country. Likewise, price quotations of tropical fruits such as mango that are already out of season were up during the month. Thus, the fruits and vegetables index in the area rose by 1.1 percent from 0.8 percent. In NCR, the price of fruits and vegetables remained stable as the group’s index posted zero growth from 3.1 percent in June. The national index slowed down to 0.9 percent.
Upward movements in the prices of flour, bread, biscuits and noodles correspondingly raised the index for cereal preparations in the Philippines by 0.5 percent; NCR, 0.8 percent; and AONCR, 0.4 percent.
Additions in the price of rice in NCR resulted to a 0.5 percent increase in the index in the area. However, due to supply availability, the increments in the price of rice in AONCR and at the national level at 0.3 percent were slower than their previous month’s rates of 0.5 percent and 0.4 percent, respectively.
The abundant supply of corn brought about by the harvest season in some provinces brought down the corn index in the Philippines by -0.3 percent and AONCR by -0.4 percent. On the other hand, its price in NCR grew by 3.0 percent.
Higher generation and system loss charges in electricity consumption in NCR along with the increments in electricity rates in AONCR and in the prices of LPG and kerosene in many areas pushed up the FLW index: Philippines, 3.7 percent, NCR, 8.7 percent and AONCR, 1.1 percent.
The national services index increased by 0.7 percent, NCR, 1.2 percent and AONCR, 0.4 percent. This was effected by higher hospital, dental and medical charges, upward adjustments in charges for personal services and tuition fees including gasoline prices in NCR. In AOMM, it resulted from tuition fee increments in some schools, colleges and universities whose fees were made available only during the current month.
The H&R index moved up by 0.3 percent in AONCR and 0.2 percent in the Philippines. This was due to the upward adjustments in rental rates in some provinces together with price hikes in the prices of cement, plywood, hollow blocks, lumber and G.I. sheets in most of the regions. In NCR, the index generally remained stable as it registered zero growth during the period.
Price hikes in some items for personal care and effects, laundry and cleaning supplies, selected household appliances and furnishings in some selected regions in AONCR raised the index for miscellaneous items in the area and in the Philippines by 0.2 percent. Prices of miscellaneous items in NCR generally remained stable as its group’s index still registered zero growth during the month.
NOTE: 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, email address: email@example.com).
|(Sgd.) CARMELITA N. ERICTA
Source: National Statistics Office
Page last updated: August 7, 2007