• Inflation for the bottom 30% income households in the Philippines increased by 2.0 percent in the fourth quarter of 2016. In the previous quarter, it picked up by 1.4 percent and in 2015 of the same quarter, 0.8 percent. This was due to higher annual mark-ups in the indices of food, beverages and tobacco (FBT) and fuel, light and water (FLW) (Table 8).
  
• The annual average inflation of the CPI for bottom 30% income households at the national level for the year 2016 decelerated by 1.4 percent. In the previous year, it was 1.6 percent (Table 11).

  • Similarly, inflation in National Capital Region (NCR) accelerated by 3.6 percent in the fourth quarter. Annual growth in the previous quarter was pegged at 1.6 percent and in the fourth quarter in 2015, -0.8 percent. Higher annual increments were noted in the indices of FBT, clothing and miscellaneous (Table 8).

  • The annual average inflation in NCR for the year 2016 advanced by 1.3 percent after it registered an annual average decline of 0.3 percent in 2015 (Table 11).

  • Following the same trend, inflation in Areas Outside the National Capital Region (AONCR) inched up by 2.0 percent in the fourth quarter of 2016. In the previous quarter, its growth was recorded at 1.4 percent and in same quarter in 2015, 0.8 percent. Higher annual gains were registered in the indices of FBT and FLW (Table 8).

  • The annual average inflation for the year 2016 in AONCR slowed down to 1.4 percent after a 1.6 percent rise in 2015 (Table 11).

• Upward price adjustments in the heavily-weighted food items such as fruits, vegetables, eggs and fish primarily pushed up the quarter-on-quarter inflation of the CPI for bottom 30% income households in the Philippines by 0.8 percent in the fourth quarter of 2016. Prices of LPG and kerosene also went up during the quarter (Table 7).

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

First Quarter 2008 - Fourth Quarter 2016

• By Region, Year-on-Year

• Annual inflation in NCR rose by 3.6 percent in the fourth quarter of 2016.

• Likewise, inflation in AONCR grew by 2.0 percent in the fourth quarter of 2016. Thirteen regions posted higher annual increments during the period with ARMM recording the highest annual rate of 4.2 percent. Meanwhile, Western Visayas exhibited the lowest annual growth at 0.4 percent (Table 8).
  

• By Commodity Group, Year-on-Year
  

  A higher annual growth was registered in FBT index in the Philippines at 2.3 percent in the fourth quarter of 2016. Similarly, the FLW index moved up at a faster rate of 1.2 percent. On the other hand, slower annual mark-ups were observed in the indices of clothing at 1.1 percent and housing and repairs (H&R), 2.0 percent. The indices of services and miscellaneous retained their previous quarter’s rates of 1.3 percent and 1.0 percent, respectively.

  The country’s annual change in the food alone index jumped by 2.2 percent during the fourth quarter of 2016. Its annual growth in the previous quarter was registered at 1.6 percent.

  Higher annual hikes were noted in the indices of rice at 0.6 percent in the fourth quarter 2016; corn, 1.1 percent; eggs, 3.4 percent; fish, 2.7 percent; fruits and vegetables, 8.9 percent; and miscellaneous foods, 1.0 percent. On the other hand, the annual uptick in dairy products index slowed down to 1.2 percent compared to 1.4 percent growth in the previous quarter. Annual growths in the indices of cereal preparations and meat remained at their corresponding previous quarter’s rates of 1.1 percent and 0.9 percent (Table 10).

  The annual average inflation for food alone index at the national level decelerated to 1.7 percent in 2016 after it had an annual average rate of 2.4 percent in 2015 (Table 12).

  The annual average increase of FBT index in 2016 was slower at 1.8 percent; clothing index, 1.2 percent; H&R index, 2.2 percent; and miscellaneous index, 1.0 percent. The annual average growth in services index was, however, higher by 1.3 percent while that for FLW index declined by 1.5 percent (Table 11).

  • In NCR, annual mark-up in FBT index was higher at 5.0 percent in the fourth quarter of 2016; clothing index, 1.4 percent; and miscellaneous index, 1.8 percent. Meanwhile, the annual adjustments in the indices of FLW and services correspondingly dropped by 1.7 percent and -0.1 percent. Annual movement in H&R index remained at its previous quarter’s rate of 0.5 percent (Table 8).

    The food alone index in NCR posted an annual growth of 5.1 percent in the fourth quarter of 2016. It was pegged at 2.9 percent in the previous quarter.

    Double-digit annual increases were correspondingly noted in the indices of corn and fruits and vegetables at 35.7 percent and 18.1 percent. Moreover, higher annual gains were registered in the indices of rice at 4.8 percent; cereal preparations, 2.4 percent; dairy products, 0.2 percent; eggs, 9.1 percent; fish, 7.0 percent and miscellaneous foods, 1.8 percent. The annual hike in meat index, however, slowed down to 1.8 percent during the quarter from 2.3 percent in the previous quarter (Table 10).

    The annual average growth of the food alone index in NCR advanced by 2.8 percent in 2016. In 2015, it was recorded at 1.5 percent (Table 12).

    The annual average change for the year 2016 for FBT index went up by 2.8 percent in 2016 and miscellaneous index, 1.1 percent. On the contrary, the annual average increases in the indices of clothing and H&R eased by 0.9 percent. The indices of FLW and services exhibited annual average declines of -7.2 percent and -0.1 percent, respectively (Table 11).

  • In AONCR, annual hike in the fourth quarter of 2016 was higher in FBT index at 2.3 percent and in FLW index, 1.2 percent. The rest of the commodity groups, however, either had lower annual rates or retained their previous quarter’s growth (Table 8).

    On an annual basis, the food alone index in AONCR increased by 2.2 percent in the fourth quarter of 2016. In the previous quarter, it was pegged at 1.6 percent.

    Higher annual rates recorded in seven regions resulted to a 0.5 percent growth in the rice index in AONCR. The highest annual growth of 6.8 percent was in ARMM while the lowest was in Cagayan Valley at -3.0 percent.

    The annual uptick in corn index was higher by 1.1 percent in the fourth quarter of 2016; eggs index, 3.3 percent; fish index, 2.7 percent; fruits and vegetables index, 8.8 percent and miscellaneous foods index, 1.0 percent. The rest of the food groups registered either slower annual gains or remained at their previous quarter’s rate (Table 10).

    In AONCR, the annual average increase in the food alone index slowed down to 1.6 percent in 2016 after a 2.4 percent gain in 2015 (Table 12).

    The annual average inflation of FBT index in AONCR was slower at 1.8 percent 2016; clothing index, 1.2 percent; H&R index, 2.2 percent and miscellaneous index, 1.0 percent. On the other hand, the services index accelerated by 1.3 percent while FLW index continued to register a negative rate at -1.4 percent (Table 11).
    

• By Region, Quarter-to-Quarter
  

  Compared to a quarter ago level, prices of items for this particular group of consumers in NCR climbed by 2.2 percent. The quarter-on-quarter growth of the heavily-weighted FBT index picked up by 2.8 percent; FLW index, 1.1 percent; and miscellaneous index, 0.7 percent. The rest of the commodity groups either moved at slower rate or had zero growth.

  Price hikes in consumer items for the bottom 30% income group in AONCR rose by 0.8 percent. This was due to higher increments in the indices of FBT and FLW.

  Eight regions exhibited higher quarterly growths. The highest rate of 2.6 percent was recorded in Cagayan Valley while the lowest was in SOCCSKARGEN at -0.4 percent.

  Among the three big areas of the country, price gains in consumer items were generally slower in Mindanao compared to Luzon and Visayas (Table 7).

• By Commodity Group, Quarter-to-Quarter
  

  On a quarterly basis, prices at the national level generally went up by 0.8 percent in the fourth quarter of 2016. In the previous quarter, its growth was pegged at 0.6 percent. Higher upticks were noted in the indices of FBT at 0.9 percent and FLW, 1.8 percent. The rest of the commodity groups had lower rates during the quarter (Table 7).

  The unfavorable weather conditions experienced in some provinces during the fourth quarter of 2016 limited supplies of vegetables in the market. Off-season fruits such as mango and lanzones also exhibited higher prices during the quarter. These factors pushed up their prices in the markets. Thus, the fruits and vegetables index in NCR accelerated by 16.7 percent and in AONCR, 4.5 percent. For the Philippines, the group’s index rose by 4.7 percent.

  The fish index in AONCR advanced by 1.3 percent and in NCR, 3.0 percent. This was due to lower supplies of selected fish species in the markets due to difficulties in catching fish brought about by unfavorable weather conditions experienced during the quarter. At the national level, the group’s index moved up by 1.3 percent.

  Price hikes in eggs noted in many regions raised the group’s index in NCR by 3.2 percent and in AONCR, 1.4 percent. At the national level, the eggs index picked up by 1.4 percent.

  The index of rice in AONCR went up by 0.3 percent as ten regions exhibited positive growths during the quarter. The highest was seen in ARMM at 1.6 percent while the lowest was noticed in SOCCSKSARGEN at -1.8 percent. Similarly, the group’s index in NCR increased by 2.1 percent. At the national level, the group’s index inched up by 0.4 percent.

  The miscellaneous foods index in AONCR posted a growth of 0.1 percent and in NCR, 0.7 percent. Selected spices, seasonings and cooking oil were generally priced higher during the quarter. At the country level, the group’s index rose by 0.1 percent.

  The meat index in AONCR increased by 0.1 percent. Higher prices in fresh and processed meat were recorded in selected regions. Meanwhile, the meat index in NCR dropped by 0.1 percent as prices of chicken generally went down during the quarter. For the Philippines, the group’s index moved up by 0.1 percent.

  Upticks in the prices of milk and milk products observed in many regions during the quarter resulted to a 0.1 percent growth in the dairy products index in AONCR and in NCR, 0.2 percent. The group’s index for the Philippines inched up by 0.1 percent.

  With seven regions registering negative rates, the corn index in AONCR dropped by 1.0 percent in the fourth quarter of 2016. The corn index in NCR, however, climbed by 16.8 percent. The group’s index at the country level registered a decline of 1.0 percent during the quarter. (Table 9).

• Higher prices of LPG and kerosene were noted in many regions during the fourth quarter of the 2016. Thus, the FLW index in AONCR accelerated by 1.8 percent and in NCR, 1.1 percent. At the national level, the group’s index grew by 1.8 percent.

• Price mark-ups in gasoline, diesel and selected medicines in many regions resulted to a 0.2 percent growth in the services index in AONCR and 0.1 percent in NCR. For the Philippines, the services index moved up by 0.2 percent.

• The H&R index in AONCR gained by 0.2 percent due to price increments in selected construction materials in some provinces. In NCR, the group’s index had zero growth. The group’s index at the national level posted a 0.2 percent growth this quarter.

• The clothing index in AONCR went up by 0.1 percent and in NCR, 0.3 percent. This was brought about by higher prices of footwear and selected clothing items. The national index for clothing inched up by 0.1 percent during the quarter.

• With increments in the prices for some items for household operations, the miscellaneous index in AONCR picked up by 0.2 percent and in NCR, 0.7 percent. For the Philippines, the group’s index rose by 0.2 percent (Table 7).

Note:

1. Monthly CPIs for the bottom 30% income households by province and selected cities are also available upon request at PSA, Price Statistics Division (Telephone Number: 376-1959).