* r - revised

• Inflation for the bottom 30% income households in the Philippines slowed down to 3.0 percent in the fourth quarter from 3.1 percent in the third quarter of 2012. The downtrend was brought about by the slower annual mark-ups in food, beverages and tobacco (FBT) and miscellaneous indices. The fourth quarter average inflation a year ago was 5.2 percent.

• The annual average growth rate of the CPI for bottom 30% income households at the national level for the year 2012 moved slower at 2.8 percent compared to 5.1 percent in 2011.

  • Similarly, inflation in National Capital Region (NCR) dipped to 1.7 percent in the fourth quarter from 3.3 percent in the third quarter of 2012. This was effected by the deceleration in the annual increments posted in the indices of FBT and fuel, light and water (FLW).

  • The annual average inflation rate in NCR eased to 1.8 percent in 2012 from 4.1 percent in 2011.

  • Following the same trend, inflation in Areas Outside the National Capital Region (AONCR) went down to 3.0 percent in the fourth quarter from 3.2 percent in the previous quarter. Slowdowns in the annual hikes in the indices of FBT and miscellaneous were noted during the quarter.

  • The annual average inflation for the year 2012 in AONCR slid to 2.8 percent from 5.1 percent in 2011.

• Price increases on items for this particular group of consumers at the national level improved to 0.4 percent in the fourth quarter from 1.2 percent in the third quarter. This can be attributed to the general price reductions in selected food items such as rice, cooking oil, sugar, spices and seasonings, corn, eggs, fruits and vegetables. Declines in the charges for electricity rates in NCR also contributed to the downtrend.

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

First Quarter 2007 - Fourth Quarter 2012

* r - revised

• By Region, Year-on-Year
  

• Annual inflation in NCR moved up at a slower pace of 1.7 percent in the fourth quarter of 2012 from 3.3 percent in third quarter.

• Inflation in AONCR likewise slipped to 3.0 percent during the fourth quarter from 3.2 percent in the third quarter. Seven regions posted slower inflation rates with Ilocos recording the lowest annual rate at -0.2 percent. The highest annual change was in Central Visayas at 7.4 percent.

• Among the regions in AONCR, the lowest annual average inflation for 2012 was in Ilocos at 0.5 percent while Central Visayas had the highest annual average inflation at 5.1 percent.

• By Commodity Group, Year-on-Year

  At the national level, the annual increment in FBT index slowed down to 2.9 percent in the fourth quarter of 2012 from its previous quarter rate of 3.0 percent and miscellaneous index, 2.2 percent from 2.3 percent. On the other hand, faster annual mark-up was observed in clothing index at 2.7 percent from 2.6 percent; H&R index, 4.1 percent from 3.9 percent; and FLW index, 5.6 percent from 4.7 percent. The services index retained its third quarter’s rate of 2.3 percent.

  The country’s annual hike in the food alone index settled down to 2.7 percent during the fourth quarter from 3.0 percent in the third quarter of 2012.

  The annual adjustment of the fruits and vegetables index dropped by 0.3 percent from 3.8 percent. In addition, the annual increase in rice index was slower at 1.7 percent in the fourth quarter from 1.9 percent in the previous quarter; cereal preparations index, 3.5 percent from 3.6 percent; dairy products index, 2.3 percent from 2.4 percent; eggs index, 3.4 percent from 3.6 percent; and fish index, 7.0 percent from 7.2 percent. On the other hand, faster annual increment was observed in corn index at 4.7 percent from 3.8 percent; meat index, 0.8 percent from 0.7 percent; and miscellaneous foods index, 2.2 percent from 0.6 percent.

  The 2012 annual average inflation for food alone index at the national level was 2.4 percent compared to 5.1 percent in 2011.

  The annual average inflation of FBT index decelerated to 2.5 percent in 2012 from 5.0 percent in 2011; FLW index, 5.7 percent from 10.9 percent; and services index, 2.8 percent from 3.9 percent. The annual average growth in H&R index however went up to 3.2 percent in 2012 from 2.1 percent in 2011 and miscellaneous index, 2.2 percent from 2.0 percent. That for the clothing index remained at 2.6 percent.

  • In NCR, the annual add-ons in the FBT and FLW indices correspondingly slowed to 1.8 percent and 1.1 percent in the fourth quarter of 2012 from their respective last quarter’s rates of 3.6 percent and 3.4 percent. Meanwhile, the annual growth in clothing index inched up 2.4 percent from 2.2 percent and H&R index, 3.8 percent from 3.7 percent. The annual rates in the services and miscellaneous indices remained at 0.8 percent and 2.8 percent, respectively.

    The annual addition for food alone index in NCR slackened to 1.4 percent in the fourth quarter from 3.5 percent in the third quarter of 2012.

    A negative annual rate was seen in fruits and vegetables index at -8.6 percent in the fourth quarter from 12.9 percent in the third quarter. Moreover, the quarterly annual gain in the corn index dipped to 1.4 percent in the fourth quarter on 2012 compared to 2.5 percent in the previous quarter; dairy products index, 5.5 percent from 6.2 percent; eggs index, 1.5 percent from 2.5 percent; and fish index, 4.6 percent from 6.3 percent. The cereal preparations index retained its last quarter’s rate of 2.7 percent while the rest of the food groups posted higher annual mark-ups.

    The annual average inflation for food alone index in NCR improved to 1.5 percent in 2012 from 3.2 percent in 2011.

    A slowdown in the annual average increase was noted in FBT index in NCR at 1.7 percent in 2012 from 3.3 percent in 2011; FLW index, 2.4 from 10.5 percent; and services index, 1.4 percent from 3.5 percent. On the contrary, annual average inflation for the clothing index advanced to 1.8 percent in 2012 from 0.9 percent in 2011; H&R index, 3.3 percent from 2.3 percent; and miscellaneous index, 2.3 percent from 1.2 percent.

  • In AONCR, the annual gain in the FBT index decelerated to 2.9 percent in the fourth quarter of 2012 from 3.0 percent in the third quarter and miscellaneous index, 2.2 percent from 2.3 percent. The rest of the commodity groups have higher annual growths with the services index retaining its last quarter rate of 2.3 percent.

    The annual increases in food alone index in AONCR eased to 2.7 percent in the fourth quarter of 2012 from 2.9 percent in the third quarter.

    Annual increment in the rice index was slower at 1.7 percent in the fourth quarter from 1.9 percent in the third quarter. The lowest annual change of -1.8 percent was observed in ARMM while the highest was in MIMAROPA at 5.1 percent.

    A 0.1 percent annual decline was recorded in fruits and vegetables index in the fourth quarter from 3.7 percent in the third quarter. Moreover, the annual uptick in cereal preparations index slipped to 3.5 percent from 3.6 percent; dairy products index, 2.2 percent from 2.3 percent; eggs index, 3.4 percent from 3.6 percent; and fish index, 7.0 percent from 7.1 percent. The rest of the food groups had faster annual gains.

    The annual average inflation in the food alone index in AONCR slowed down to 2.4 percent in 2012 from 5.1 percent in 2011.

    Compared to the previous year, the annual average inflation for FBT index in AONCR slid to 2.5 percent in 2012 from 5.1 percent in 2011; FLW index, 5.7 percent from 10.9 percent; and services index, 2.8 percent from 3.9 percent. On the contrary, annual average inflation in H&R index grew by 3.2 percent from 2.1 percent and miscellaneous index, 2.2 percent from 2.0 percent. That for the clothing index remained at 2.6 percent.

• By Region, Quarter-to-Quarter

  Compared to a quarter ago level, prices of items for this particular group of consumers in NCR fell by 0.1 percent from 2.0 percent in the third quarter. It resulted from the 1.1 percent decline in the FLW index during the quarter. Moreover, the quarterly add-on in the FBT index slowed to 0.1 percent from 2.6 percent; clothing index, 0.3 percent from 1.4 percent; H&R index, 0.3 percent from 0.7 percent; and miscellaneous index, 0.2 percent from 1.1 percent. That for the services index remained at 0.1 percent.

  Price hikes in consumer items in the bottom 30% income group in AONCR decelerated to 0.3 percent in the fourth quarter from 1.2 percent in the third quarter. The downtrend was due to slower quarterly increments in all the commodity groups except in FLW index whose rate went up 1.3 percent from -0.1 percent.

  All the regions registered either slower quarterly mark-up or negative rate except in Cagayan Valley, Davao Region and SOCCSKSARGEN. The lowest quarterly rate was in ARMM at -0.3 percent.

  Among the three big areas of the country, price add-ons in consumer items were generally lower in Mindanao compared to Luzon and Visayas.

• By Commodity Group, Quarter-to-Quarter

  On a quarterly basis, price increases at the national level decelerated to 0.4 percent in the fourth quarter from 1.2 percent in the third quarter of 2012. This was brought about by the slower quarterly growth posted in the heavily-weighted FBT index at 0.3 percent from 1.4 percent; clothing index, 0.4 percent from 0.9 percent; H&R index, 0.3 percent from 1.5 percent; services index, 0.1 percent from 0.6 percent; and miscellaneous index, 0.3 percent from 0.7 percent. The quarterly gain in FLW index however picked up by 1.3 percent from -0.1 percent in the previous quarter.

  The harvest season of palay during the quarter resulted to sufficient supply of rice in the markets. Thus, the rice index in the Philippines and AONCR went down by 0.6 percent from 1.1 percent. Eleven regions recorded quarterly decreases with ARMM reporting the lowest rate of -2.5 percent. Likewise, the group’s index in NCR fell by 0.5 percent.

  With eight regions registering either lower or negative rates, the corn index in the Philippines and AONCR went up at a slower rate of 0.9 percent in the fourth quarter from 1.5 percent in the third quarter. The corn index in NCR also declined by 0.4 percent from 0.2 percent.

  The dairy products index in the Philippines and AONCR increased by 0.4 percent due to higher prices of milk and milk products. On the other hand, the dairy products index in NCR dropped by 0.6 percent as prices of milk in the area generally went down during the quarter.

  Price reductions in eggs were noted in four regions. Moreover, six regions had lower quarterly increments. Hence, growth in the eggs index in the Philippines and AONCR slowed to 0.4 percent from their corresponding rates of 0.8 percent and 0.9 percent; and in NCR, 0.3 percent.

  Lower supplies of fish in the markets brought about by the difficulty in catching fish that usually settle deep in the waters during the cold months effected a 0.8 percent growth in the group’s index in the Philippines and AONCR and 1.6 percent in NCR.

  Abundant supplies of fruits and vegetables from the producing provinces in the northern part of the country resulted to cheaper prices of these products. Thus, the fruits and vegetables index in NCR dropped by 2.6 percent in the fourth quarter of 2012 from 13.1 percent in the previous quarter. In AONCR, slower price hikes in vegetables were observed in Visayas and Mindanao, pushing down the group’s growth rate to 1.8 percent from 2.3 percent. The group’s index at the national level likewise moved up at a slower rate at 1.7 percent from 2.4 percent.

  The miscellaneous foods index in the Philippines and AONCR registered a quarterly reduction of 0.2 percent. This can be attributed to the decline in the prices of sugar and cooking oil in all the regions. In NCR, price add-ons in spices and seasonings were offsetted by the price decreases in cooking oil, sugar and sugar products. Thus, the increment in the group’s index decelerated to 0.2 percent from 2.5 percent.

  Higher quarterly rates in the meat index brought about by price increases in beef and chicken particularly in the Mindanao region were observed. On the other hand, negative and slower price increments in chicken, pork and beef were posted in selected regions in Luzon and Visayas. Hence, the meat index for the fourth quarter of the year retained its previous quarter rate of 0.2 percent in the Philippines and in AONCR. In NCR, price reduction in pork tempered higher prices of beef, chicken and processed meat. This resulted to a 0.1 percent growth in its group’s index, slower than the 1.4 percent uptick during the last quarter.

• Higher demand for footwear and wearing apparel during the holiday season effected the 0.4 percent growth in the clothing index in the Philippines and in AONCR and 0.3 percent in NCR.

• Movement in the H&R index in the three areas was pegged at 0.3 percent in the fourth quarter due to price increments in construction and electrical materials such as cement, lumber and wires in most of the regions.

• Price mark-ups in gasoline and diesel were noted during the quarter. Higher prices of selected medicines in selected regions were also observed. Thus, the services index in the Philippines, NCR and AONCR inched up 0.1 percent.

• With increments in the prices for some household goods like detergent soap, linen and furniture, the miscellaneous index in the Philippines and AONCR went up by 0.3 percent during the quarter and in NCR, 0.2 percent.

• Price hikes in LPG, kerosene, charcoal and candle were noted during the last quarter of the year. As such, the FLW indices in the Philippines and AONCR moved up by 1.3 percent in the fourth quarter. However, lower charges for electricity rates in NCR pulled down the group’s index in the area by 1.1 percent.

Note:

For detailed information about the series, please refer to the full report entitled “The Consumer Price Index for Bottom 30% Income Households in the Philippines, January 2010 - December 2010 (2000=100)” posted on the NSO website on May 19, 2011. (http://www.census.gov.ph/data/sectordata/B30tx.html)