• Inflation for the bottom 30% income households in the Philippines slowed down to 3.1 percent in the first quarter of 2015. It was recorded at 5.1 percent in the last quarter of 2014 and 5.7 percent in the first quarter last year. The downtrend was brought about by the negative annual rate posted in fuel, light and water (FLW) index and the slower annual mark-ups in food, beverages and tobacco (FBT), clothing and services indices.

  • Similarly, inflation in the National Capital Region (NCR) decelerated to 1.5 percent in the first quarter of 2015. It was pegged at 3.6 percent in the previous quarter and 4.6 percent in the first quarter of 2014. This was due to the annual decrease observed in the FLW index. Except for the services and H&R indices, all the other commodity groups had slower annual increments.

  • Annual inflation in Areas Outside the National Capital Region (AONCR) likewise eased to 3.1 percent in the first quarter of 2015. Last quarter, the annual growth was 5.1 percent and 5.7 percent in the same quarter last year. This was mainly effected by the annual decline registered in the FLW index. Also contributing to the slowdown were slower annual growths observed in all the commodity groups except for the indices of housing and repairs (H&R) and miscellaneous.

• The country’s quarter-to-quarter price adjustment for the bottom 30% income households decreased by 0.1 percent during the quarter. Lower charges in the electricity rates in all the regions and reductions in the prices of gasoline, diesel, kerosene and LPG in many regions brought about the downtrend. Declines in selected food items such as fresh vegetables, fruits, rice, eggs, chicken and pork in NCR were also noted during the quarter.

Year-on-Year Inflation Rates in the Philippines, All Items

First Quarter 2007 - First Quarter 2015

• By Region, Year-on-Year
  

• Annual inflation in NCR moved up at a slower pace of 1.5 percent in the first quarter of 2015.

• Likewise, inflation in AONCR improved to 3.1 percent during the first quarter. All the regions exhibited slower annual upticks with Central Luzon recording the lowest annual rate of 1.2 percent. On the other hand, the highest annual growth of 4.5 percent was posted in MIMAROPA and Davao Region.

• By Commodity Group, Year-on-Year

  At the national level, the annual movement of the FLW index decreased by 7.5 percent in the first quarter of the year. In addition, the annual mark-up in the heavily-weighted FBT index slowed to 4.5 percent; clothing index, 2.0 percent; and services index, 1.2 percent. On the other hand, a faster annual rate of 3.6 percent was seen in the H&R index while the annual growth in the miscellaneous index remained at 1.5 percent.

  The country’s annual hike in the food alone index eased to 4.6 percent during the first quarter of 2015. Last quarter, it was posted at 6.8 percent.

  All the food groups recorded slower annual upticks: rice index, 6.0 percent; corn index, 3.0 percent; cereal preparation index, 2.9 percent; dairy products index, 2.9 percent; eggs index, 5.0 percent; fish index, 4.0 percent; fruits and vegetables index, 4.2 percent; meat index, 3.9 percent; and miscellaneous foods index, 4.5 percent.

  • In NCR, a double-digit annual decrease of 12.8 percent was noticed in the FLW index in the first quarter of 2015. Moreover, a reduction in the annual growth was observed in the FBT index at 4.3 percent; clothing index, 1.5 percent; and miscellaneous index, 1.8 percent. On the contrary, the services index moved up at a faster rate of 2.5 percent while that for the H&R index remained at 1.3 percent.

    The annual gain in the food alone index in NCR decelerated to 4.4 percent during the quarter. Its annual growth last quarter was at 6.1 percent.

    All the food groups had slower annual increases except in the fruits and vegetables index which registered a higher annual increment of 4.1 percent.

  • In AONCR, the annual rate in the FLW index dropped by 7.3 percent in the first quarter of the year. Moreover, the annual add-on in the FBT index improved to 4.6 percent; clothing index, 2.0 percent; and services index, 1.1 percent. Higher annual growths were however, seen in the indices of H&R and miscellaneous at 3.6 percent and 1.5 percent, respectively.

    The annual growth in the food alone index in AONCR decelerated to 4.6 percent in the first quarter of 2015. Last quarter, it was posted at 6.8 percent.

    The rice index registered a slower annual uptick of 6.0 percent in the first quarter as all the regions, except Caraga, registered slower rates.

    Annual growth likewise slowed in the corn index at 3.0 percent; cereal preparations index, 3.0 percent; dairy products index, 2.8 percent; eggs index, 4.8 percent; fish index, 4.0 percent; fruits and vegetables index, 4.3 percent; meat index, 3.9 percent; and miscellaneous foods index, 4.5 percent.

• By Region, Quarter-to-Quarter

  Compared to a quarter ago level, prices of items for this particular group of consumers in NCR dropped by 0.8 percent in the first quarter. It resulted from the decline in the FLW index at -4.7 percent and in FBT index, -0.4 percent. Moreover, the increase in the clothing index slowed down to 0.2 percent. On the other hand, the services index exhibited a higher growth of 1.6 percent. Movements in the indices of H&R and miscellaneous remained at 0.1 percent.

  Prices in AONCR generally decreased by 0.1 percent in the first quarter of 2015. The downtrend was due to the negative quarter-on-quarter rates recorded in the FLW and services indices at -3.6 percent and -0.2 percent, respectively. Meanwhile, the clothing index posted a faster rate of 0.5 percent; H&R index, 2.2 percent; and miscellaneous index, 0.4 percent. The quarterly movement of FBT index remained at 0.2 percent.

  Twelve regions had either negative rates or slower quarterly mark-ups. Ilocos Region had the lowest rate of -1.6 percent.

  Among the three big areas of the country, prices in Luzon generally went down compared to those in Visayas and Mindanao.

• By Commodity Group, Quarter-to-Quarter

  On a quarterly basis, prices of consumer items for the bottom 30% income group at the national level dropped by 0.1 percent in the first quarter. This was brought about by the declines noted in the FLW and services indices at -3.7 percent and -0.1 percent. The slower quarterly growth of 0.1 percent noted in the heavily-weighted FBT index also contributed to the downtrend. On the other hand, the rest of the commodity groups had higher quarterly mark-ups.

  The index for rice in the Philippines and AONCR went down by 1.0 percent in the first quarter as all the regions registered either negative or slower quarterly rates. In NCR, the rice index went down by 1.7 percent.

  The miscellaneous foods index in the Philippines and AONCR fell by 0.8 percent and in NCR, -0.3 percent. This can be attributed to price cuts in spices such as garlic and ginger. Lower prices of sugar and cooking oil in selected regions were also noticed during the quarter.

  With ten regions having negative rates, the corn index in the Philippines and AONCR shrank by 0.6 percent in the first quarter and in NCR, -3.8 percent.

  The price of eggs was generally lower in NCR, hence, the group’s index in the area contracted by 2.1 percent. The eggs index at the national level and in AONCR moved up but at a slower rate of 1.1 percent and 1.2 percent, respectively.

  The growth in the dairy products index in NCR improved to 0.6 percent and in AONCR, 0.4 percent. Higher prices of cheese and butter were tempered by lower prices of milk in selected regions. The increase of the group’s index at the national level decelerated to 0.4 percent.

  Reductions in the prices of pork and chicken were noted in many regions during the quarter. Thus, the meat index in NCR went down by 0.8 percent. The group’s index in the Philippines and AONCR inched up 0.1 percent as prices of beef and processed meat went up during the quarter.
  

  Upward price adjustments in beans and legumes and leafy vegetables were observed in selected regions. Meanwhile, prices of tomato, onions, potato, carrot and native pechay were lower during the quarter. This mixed price movements caused the group’s index in AONCR to move up at a slower pace of 1.1 percent. In NCR, the group’s index went down by 1.8 percent as cheaper prices onions, tomato and potato were noticed during the quarter. At the national level, the uptick in the group’s index slid to 1.1 percent.
  

  The fish index in the Philippines and AONCR jumped by 2.4 percent and in NCR, 1.9 percent. The difficulty of catching fish during the cold months of the first quarter limited the volume of supplies of selected fish species in the market, thus, raising their prices during the quarter.

• The general price rollbacks in LPG and kerosene and lower electricity charges in many regions pushed down the FLW index in the three areas: Philippines, -3.7 percent; AONCR, -3.6 percent; and NCR, -4.7 percent.

• Prices of gasoline and diesel generally went down nationwide during the quarter. Hence, the services index in AONCR declined by 0.2 percent. On the other hand, the group’s index in NCR rose by 1.6 percent due to the increase in train fares. At the national level, the group’s index decreased by 0.1 percent.

• Higher prices of footwear and selected wearing apparel during the first quarter effected a 0.5 percent growth in the clothing index in the Philippines and AONCR, and 0.2 percent in NCR.

• The H&R index in the Philippines and AONCR rose 2.2 percent, and in NCR, 0.1 percent. This was due to the general price increments in selected construction materials and higher rental rates for dwellings in selected provinces.

• With higher prices in selected items for household operation and personal effects, the miscellaneous index in the Philippines and AONCR gained 0.4 percent and NCR, 0.1 percent.

Note:

1. The first and second survey reports for the CPI for bottom 30% income households from Basilan for January, February and March 2015 were not received as of April 28, 2015.
   
2. Monthly CPIs for the bottom 30% income households by province and selected cities are also available upon request at PSA, Economic Sector Statistics Services (Telephone Numbers: 716-39-35 and 715-33-47).