Year-on-Year

Measured from a year ago, the national inflation rate moved up to 5.1 percent in December from 4.5 percent in November. This brings the average inflation rate for 1996 to 8.4 percent, as compared to the 8.1 percent recorded in 1995.

Month-on-Month

On a month-on-month basis, prices went up by 0.8 percent in December compared to the decline of 0.2 percent in the previous month.

By Region, Year-on-Year

• The inflation rate for Metro Manila increased to 7.2 percent from last month's 6.6 percent bringing about an average inflation of 8.3 percent during the year from 8.1 percent in 1995.
• Areas outside Metro Manila (AOMM) registered 4.5 percent rate in December from 3.8 percent in November. The average annual inflation in the area was recorded at 8.4 percent from last year's 8.1 percent.
• Compared to November, eight regions registered higher rates, of which the biggest increment was registered in the Cordillera Administrative Region (CAR) at 2.9 percentage points. The inflation in the Bicol region remained at -0.3 percent, the lowest rate recorded. The Autonomous Region of Muslim Mindanao (ARMM) posted the highest inflation rate at 9.0 percent even as it decelerated from 10.1 percent the previous month.

By Commodity Group, Year-on-Year

• Except for the miscellaneous items group where inflation remained at 1.7 percent, all the other commodity groups had higher rates in December.
• The services index posted the highest rate at 12.7 percent with an increment of 1.8 percentage points from its previous month's level.
• The food, beverages and tobacco (FBT) rate increased by 2.5 percent from 2.0 percent; clothing, 4.0 percent from 3.7 percent; housing and repairs (H&R), 8.9 percent from 8.6 percent; and fuel, light and water (FLW), 9.9 percent from 8.5 percent.
• For Metro Manila, the H&R rate remained at 8.3 percent while increases were noted in the rates of FBT, 5.3 percent from 4.7 percent; clothing, 2.6 percent from 2.1 percent; FLW, 14.1 percent from 11.2 percent; services, 11.0 percent from 9.5 percent; and miscellaneous items, 0.4 percent from -0.1 percent.
• For AOMM, the miscellaneous items rate remained at 2.0 percent. All the other five commodity groups registered higher inflation rates; services higher by 1.9 percentage points; H&R and FLW, by 0.8 percentage point; FBT, by 0.5 percentage point; and clothing, by 0.2 percentage point.
• The decline in the inflation rate in rice slowed to -4.7 percent from -7.5 percent as ten regions including Metro Manila registered increases in the rates. Metro Manila recorded the highest inflation in rice at 10.3 percent while Bicol registered the lowest at -20.5 percent. Corn prices further declined to - 2.6 percent from -1.5 percent the previous month. Hence the rate in cereal preparations increased by 0.1 percentage point.
• The inflation rates for other food groups were on the downtrend, i.e.; fruits and vegetables, 6.6 percentage points; miscellaneous foods, 1.2 percentage points; meat, 1.1 percentage points; eggs, 0.9 percentage point; fish, 0.3 percentage point; and dairy products, 0.1 percentage point.

By Region, Month-on-Month

• Prices in Metro Manila increased by 0.9 percent from 0.2 percent last month. The FBT and miscellaneous items indices moved up by 1.3 percent and 0.3 percent respectively after corresponding declines of 0.3 percent and 0.2 percent in November. The clothing index increased by 0.6 percent from zero (no change) last month. H&R prices were generally stable at zero percent change during the month compared to last month's 0.1 percent uptick while those of FLW went up to 2.6 percent from 2.8 percent last month.
• In AOMM, prices went up by 0.8 after a decline of 0.3 percent last month. Except for miscellaneous items and H&R, monthly inflation rates in other major groups were higher than the previous month. Inflation was higher in FBT, at 0.5 percent from -1.0 percent last month; clothing, at 0.6 percent from 0.4 percent; FLW, at 1.0 percent from 0.7 percent; and services, at 2.0 percent from 0.9 percent. Rates in H&R and miscellaneous items were lower than those in November by 0.1 percentage point.
• Except in ARMM where the rate slowed down to 1.0 percent from 1.1 percent, all regions posted higher month-on-month inflation rates. Central Luzon registered the highest monthly rate at 1.8 percent followed by Western Mindanao at 1.1 percent. Prices in Central Mindanao generally did not change after a decrease of 0.6 percent last month while other regions recorded increments of less than 1.0 percent.

By Commodity Group, Month-on-Month

• Month-on-month inflation rates were higher in FBT, clothing, FLW and services at 0.7 percent, 0.6 percent, 1.4 percent and 1.8 percent, respectively. A slowdown was registered in H&R at 0.4 percent from 0.5 percent while the miscellaneous items rate remained at 0.2 percent.
• Higher month-on-month rates were recorded in FBT bringing about an increase of 0.5 percent in AOMM after it declined by 1.0 percent last month.
• The price of rice continued to decrease in December but at a slower rate compared to last month. The index declined further by 0.2 percent from -3.0 percent last month as nine regions registered negative rates in rice. However, rice in Metro Manila was priced 0.8 percent higher after a 1.9 percent decline last month. Western Mindanao posted the highest price increase at 4.4 percent while the biggest price decrease was in Central Mindanao (-2.1%).
• The national and AOMM indexes for corn were still on the decline in December at -0.3 percent but at a slower rate than the -2.0 percent in November as seven regions recorded negative rates. Cagayan Valley posted the biggest decrease at 3.6 percent. Corn in Metro Manila was priced higher by 1.0 percent.
• The prices of eggs declined by 0.5 percent in the Philippines, 1.8 percent in Metro Manila and 0.1 percent in AOMM.
• The price of fish went up in most regions including Metro Manila. The national index increased by 1.4 percent, Metro Manila, 3.9 percent and AOMM, 0.9 percent.
• Prices of fruits and vegetables were quoted higher as the demand increased in December pushing up the index by 3.2 percent at the national level, 2.5 percent in Metro Manila and 3.4 percent in AOMM.
• Most regions including Metro Manila recorded higher prices of chicken, pork and beef pushing up the meat index by 1.4 percent in the Philippines, 3.0 percent in Metro Manila and 0.7 percent in AOMM.
• The miscellaneous food index decreased in Metro Manila and in eleven regions primarily due to lower sugar prices.
• The FLW index went up by 1.4 percent in the Philippines, 2.6 percent in Metro Manila and 1.0 percent in AOMM. This resulted from higher electricity rates in AOMM and currency exchange rate adjustments for electricity and water in Metro Manila. There were also the increased prices of LPG and kerosene in these areas.
• The services index increased by 1.8 percent in the Philippines, 1.4 percent in Metro Manila and 2.0 percent in AOMM. These were mainly due to the increase in transport fares and the price increase in gasoline. Higher charges in personal services and recreational services in some regions also contributed to the increase in the services index.
• The clothing index was up by 0.6 percent in all the three areas as prices of ready-made apparel and footwear increased during the holiday season.

NOTE: Midmonth price reports for December are still expected from 14 provinces.

Source: National Statistics Office