Year-on-Year

Measured from a year ago, the national inflation rate was 6.1 percent in December compared to 6.5 percent in November. This brought the average inflation rate for 1997 to 5.1 percent, as compared to the 8.4 percent in 1996. The index was estimated at 245.7 in December from 244.7 in November.

Month-on Month

On a month-on-month basis, prices were up by 0.4 percent in December from 0.6 percent in November.

• By Commodity Group, Year-on-Year
• Four of the commodity groups recorded lower inflation rates in December compared to November. The rates for food, beverages and tobacco (FBT) were lower in November by 0.5 percentage point; clothing, by 0.2 percentage point; fuel, light and water (FLW), by 0.9 percentage point; and services, by 1.1 percentage points. Only miscellaneous items and housing and repairs (H&R) posted a higher inflation rates in December by 0.3 and 0.2 percentage point respectively.
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  • The inflation rate for food alone was 3.2 percent in December, lower than the 3.7 percent recorded in November. Lower rates were noted in the prices of rice, 2.7 percent from 3.4 percent; cereal preparations, 6.2 percent from 6.3 percent; fruits and vegetables, -2.7 percent from zero growth; and meat, 2.9 percent from 3.8 percent. However, higher rates were recorded in corn, 4.5 percent from 4.4 percent; dairy products, 5.0 percent from 4.9 percent; eggs, 3.9 percent from 3.2 percent; fish, 8.4 percent from 8.1 percent; and miscellaneous foods, 2.2 percent from 1.9 percent.
• In Metro Manila, the rates for FBT and services were lower by 0.1 percentage point; clothing, by 0.3 percentage point; and FLW, by 1.5 percentage points. On the other hand, H&R and miscellaneous items were both higher by 0.3 percentage point.
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  • The inflation for food alone slowed down to 2.2 percent in December from 2.3 percent in November. Lower rates were posted in the price of rice, 3.6 percent from 4.8 percent; cereal preparations, 9.0 percent from 9.9 percent; fruits and vegetables, -16.4 percent from -14.0 percent; and meat, 2.1 percent from 4.3 percent. However, higher rates were recorded in the price of corn, 4.0 percent from 3.4 percent; dairy products, 4.5 percent from 3.9 percent; eggs, 3.5 percent from 1.8 percent; fish, 17.1 percent from 11.3 percent; and miscellaneous foods, 2.1 percent from 1.7 percent.
• For areas outside Metro Manila (AOMM), most of the groups registered lower rates, FBT, by 0.5 percentage point; clothing, 0.2 percentage point; H&R, 0.1 percentage point; FLW, 0.7 percentage point; and services, 1.3 percentage points. Only the miscellaneous items index registered a higher rate over the previous month, by 0.2 percentage point.
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  • The inflation rate for food alone slowed down to 3.4 percent from 4.0 percent.
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  • The inflation rate for rice registered a lower rate compared to last year, i.e., 2.6 percent from 3.2 percent. Eight regions posted lower rates, the biggest decrease of which was 6.3 percentage points in Western Mindanao.
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  • Lower rates were also noted in the prices of dairy products, 0.2 percentage point; fish, 0.5 percentage point; fruits and vegetables, 2.7 percentage points; and meat, 0.3 percentage point.
• By Region, Year-on-Year
• The inflation rate for Metro Manila remained at 7.0 percent bringing about an average inflation rate of 6.6 percent during the year from 8.4 percent in 1996.
• Prices in AOMM registered a 5.8 percent rate in December, a slower rate compared to 6.3 percent in November. The average annual inflation was recorded at 4.5 percent from 8.4 percent last year. Only Northern and Southern Mindanao posted higher rates than those of the previous month. The biggest decrease was noted in Central Luzon at 1.4 percentage points followed by Cordillera Administrative Region (CAR) at 0.9 percentage point, and Western Visayas and Western Mindanao at 0.6 percentage point. ARMM posted the highest inflation rate at 7.2 percent while CAR recorded the lowest rate at 3.0 percent.
• By Commodity Group, Month-on-Month
• Slowdowns were registered in FBT at 0.2 percent from 0.3 percent; H&R, 0.6 percent from 0.8 percent; FLW, 0.6 percent from 1.3 percent; and services, 1.1 percent from 1.6 percent. Month-on-month inflation rate was only higher in clothing at 0.4 percent from 0.3 percent while the miscellaneous items rate continued to remain at 0.5 percent.
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  • The price of rice continued to decline in December at -0.9 percent from -0.5 percent last month. Eleven regions including Metro Manila posted negative month-on-month changes ranging from -0.4 percent (Metro Manila) to -4.1 percent (CAR). The highest rate was recorded in Cagayan Valley at 0.8 percent.
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  • The national and AOMM indices for corn were still on the decline in December at -0.1 percent and -0.2 percent respectively as eight regions posted negative rates. CAR and Southern Tagalog posted the biggest decrease at -5.2 percent. Corn in Metro Manila was priced higher by 1.6 percent.
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  • Cereal preparations posted an increment of 0.6 percent at the national level and in Metro Manila and 0.5 percent in AOMM as prices of flour, biscuits, noodles and bread continued to increase in December. The national increase was still lower than the 1.1 percent in November.
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  • Prices of dairy products were on the uptrend as the national index posted a 0.2 percent increase in December, 0.4 percent in Metro Manila and 0.1 percent in AOMM as prices of milk, butter and cheese increased in Metro Manila and in many regions.
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  • Prices of eggs in the Philippines and AOMM correspondingly increased by 0.2 percent and 0.3 percent. On the other hand, prices of eggs decreased by -0.2 percent in Metro Manila.
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  • The price of fish went up in most regions including Metro Manila. The national index increased by 1.7 percent ; Metro Manila, by 9.4 percent and AOMM, by 0.4 percent.
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  • Prices of fruits and vegetables slowed down in AOMM as it recorded a 0.2 percent increase in December from 2.5 percent last month. Eleven regions posted decreases from their rates the previous month. In Metro Manila, the group's index continued to decline as it recorded a decrease of -0.4 percent from -5.5 percent last month due to continuous inflow of vegetables from traditional sources and the heavy deliveries of fruits from the provinces. This resulted to a zero growth in the national index for the group.
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  • Higher prices of chicken during the holidays in Metro Manila and in many regions caused the meat index to increase by 0.5 percent in the Philippines, 0.9 percent in Metro Manila and 0.4 percent in AOMM.
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  • The miscellaneous foods index increased by 0.1 percent but was lower than the 0.5 percent in November due to increases in the prices of sauces, coffee, vinegar, Milo and calamansi in Metro Manila and in many regions.
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  • Meals eaten outside correspondingly went up by 0.1 percent in AOMM and zero growth in Metro Manila and the Philippines.
• The services index registered the highest month-on-month rate of 1.1 percent in the national index due to increases in transport fares in airplane and bus. Along with these, a general increase in the price of medicines was noted in Metro Manila and AOMM. Higher charges for medical and personal services, wages of domestic helper, admission fees in movies and cockfights and prices of school supplies also contributed to the increase.
• The H&R index posted a 0.6 percent increase in the Philippines, 0.3 percent in Metro Manila and 0.9 percent in AOMM. This was brought about by higher rental rates in some regions and increases in the prices of construction materials such as G.I. sheets, cement, lumber, plywood, common wire nails and hollow blocks.
• The FLW index also went up by 0.6 percent in the Philippines, 1.2 percent in Metro Manila and 0.3 percent in AOMM. This was due to the increases in the currency exchange rate adjustment (CERA) and purchased power adjustment (PPA) for electricity in Metro Manila and in the prices of charcoal, firewood and electricity rate in most regions.
• The clothing index recorded a 0.4 percent increment in the Philippines, Metro Manila and AOMM. This was mainly due to the increase in the prices of footwear and ready-made apparel.
• The miscellaneous items group retained its previous month's rate of 0.5 percent in the Philippines while 0.6 percent and 0.4 percent increases were noted in Metro Manila and AOMM respectively.
• By Region, Month-on-Month
• Prices in Metro Manila rose by 0.9 percent from 0.2 percent last month. FBT went up by 1.3 percent after a decline of -0.6 percent in November. Higher month-on-month rates were recorded for services, 1.3 percent from 1.1 percent, and miscellaneous items, 0.6 percent from 0.4 percent. Lower rates were registered in H&R by 0.1 percentage point and FLW, 0.7 percentage point. The clothing index remained at its previous month's rate of 0.4 percent.

NOTE: Midmonth price reports for the following provinces were not received as of December 29, 1997:

• In AOMM, prices were up by 0.3 percent but at a slower rate compared to the 0.7 percent increase last month. FBT declined by -0.1 percent from the 0.5 percent increase in November. Three commodity groups registered lower rates, i.e., H&R, by 0.3 percentage point; FLW and services, 0.8 percentage point; and miscellaneous items, 0.1 percentage point. However, the clothing index posted higher month-on-month rate of 0.4 percent from 0.2 percent. Except for Western Visayas, Southern Mindanao and Central Luzon which posted higher rates at 0.1 percent, 0.7 percent and 0.4 percent from their corresponding previous month's rates of -0.1 percent, 0.2 percent and 0.3 percent, all the other regions posted lower rates with the lowest recorded in CAR at -0.6 percent.

  Bohol 
  Siquijor 
  Basilan 
  Zamboanga City 
  Misamis Occidental 
  Tawi-Tawi (1st and 2nd phase)

Source: National Statistics Office