* r - revised

• Inflation for the bottom 30% income households at the national level eased to 2.4 percent in the second quarter of 2012 from 2.7 percent in the first quarter. This can be attributed to the slower quarterly average inflation posted in clothing, fuel, light and water (FLW) and services indices. The second quarter average inflation during the same period a year ago was 5.4 percent.
  

  • Inflation in NCR likewise improved 0.5 percent in the second quarter from 1.7 percent in the first quarter of 2012. This was due to the negative annual rate in FLW index and the slower annual increments in the indices of the heavily-weighted food, beverages and tobacco (FBT) and services.

  • Annual inflation in Areas Outside NCR (AONCR) decelerated to 2.4 percent in the second quarter from 2.7 percent in the first quarter. The annual increases in the indices of clothing, FLW and services slowed down during the period.

• On a quarter-to-quarter basis, prices of items for this particular group of consumers in the Philippines picked up 0.9 percent in the second quarter from 0.5 percent in the first quarter of 2012. Increases in the prices of food items particularly rice, corn, milk, bread, processed eggs, sugar and meals eaten outside the home were noted in many regions. Upward price adjustments in firewood and selected items for personal care and effects were similarly recorded in selected regions. Tuition fee hikes during the opening of classes in June in all of the regions also contributed to the uptrend.

Year-on-Year Inflation Rates in the Philippines, All Items
First Quarter 2007 - Second Quarter 2012

* r - revised

• By Region, Year-on-Year
  

• Inflation in NCR eased to 0.5 percent in the second quarter 2012 from 1.7 percent in the first quarter of 2012.

• Likewise, inflation in AONCR slowed down to 2.4 percent during the quarter from 2.7 percent in the first quarter of 2012. Slowdowns in the annual rates were posted in eleven regions with the biggest decrease of 3.2 percentage points in Northern Mindanao (4.2% from 7.4%). The lowest inflation for the quarter at 0.2 percent was noted in Ilocos while the highest rate at 4.3 percent was seen in Central Visayas.

• By Commodity Group, Year-on-Year

  At the national level, the annual inflation in the clothing index moved at a slower pace of 2.4 percent in the second quarter from 2.5 percent in the last quarter; FLW index, 4.6 percent from 7.7 percent; and services index, 2.8 percent from 3.6 percent. The annual movements in the rest of the commodity groups were either faster or remained at their previous quarter’s rate.

  The annual inflation of food alone index in the Philippines slowed down to 1.9 percent during the quarter compared to 2.0 percent in the first quarter of the year.

  A negative annual adjustment was continuously posted in the miscellaneous foods index at -4.3 percent from -5.5 percent. Moreover, a slower annual increase was recorded in the corn index at 5.5 percent in the second quarter from 10.2 percent in the first quarter; cereal preparations index, 3.6 percent from 4.2 percent; dairy products index, 2.2 percent from 2.5 percent; and meat index, 0.9 percent from 1.4 percent. The rest of the food groups, however, had higher annual gains with the rice index moving at its previous quarter rate of 1.3 percent.

• In NCR, a negative annual growth was recorded in FLW index at -1.2 percent in the second quarter from 6.4 percent in the first quarter. In addition, the annual uptick in FBT index further dipped to 0.6 percent from 0.7 percent and services index, 1.0 percent from 2.8 percent. Meanwhile, the rest of the commodity groups had higher annual increments during the quarter.

  Annual gain in the food alone index in NCR decelerated to 0.4 percent in the second quarter from 0.5 percent in the first quarter of 2012.

  The annual change in the rice index further dropped to -2.9 percent in the second quarter from -1.9 percent in the first quarter; meat index, -0.3 percent from 0.6 percent; and miscellaneous foods index, -2.2 percent from -0.9 percent. Moreover, the annual hike in cereal preparations index slowed down to 2.0 percent from 3.2 percent. On the other hand, higher annual increases were recorded in all the other food groups.

• In AONCR, the annual growth in the clothing index eased to 2.4 percent in the second quarter from 2.5 percent in the first quarter of 2012; FLW index, 4.7 percent from 7.7 percent; and services index, 2.8 percent from 3.6 percent. On the contrary, the annual adjustments in H&R and miscellaneous indices correspondingly grew 2.8 percent and 2.2 percent from 1.9 percent and 2.1 percent, respectively. The annual growth in the FBT index remained at its last quarter rate of 2.1 percent.

  The annual inflation in the food alone index in AONCR slowed down to 1.9 percent during the second quarter from 2.0 percent in the first quarter of 2012. A negative annual change was still noticed in miscellaneous foods index at -4.4 percent from -5.6 percent. The annual increment in corn index improved to 5.5 percent in the second quarter from 10.2 percent in the previous quarter; cereal preparations index, 3.6 percent from 4.2 percent; dairy products index, 2.1 percent from 2.5 percent; and meat index, 0.9 percent from 1.4 percent. The rest of the food groups had higher annual rates.

  The annual growth in the rice index remained at 1.3 percent due to the mixed annual price movements among the regions. Higher annual adjustments were registered in six regions while ten regions had either slower annual gains or negative rates.

• By Region, Quarter-to-Quarter

  Prices of items for this particular group of consumers in NCR generally went up 0.2 percent in the second quarter from -0.4 percent in the first quarter of 2012. The heavily-weighted FBT index advanced by 0.2 percent in the second quarter from -1.0 percent in the last quarter; clothing index, 0.5 percent from 0.2 percent; services index, 0.4 percent from 0.3 percent; and miscellaneous index, 0.8 percent from 0.6 percent. However, the increment in the H&R index slowed to 0.9 percent from 2.0 percent while FLW index had a zero growth.

  Prices in AONCR grew 1.0 percent in the second quarter from 0.5 percent in the first quarter of 2012. All the commodity groups exhibited higher quarterly increases except FLW index whose rate moved at a slower pace of 1.6 percent from 2.8 percent.

  Ten regions posted higher quarterly average inflation during the period. The biggest jump of 2.8 percentage points was seen in Central Visayas (3.4% from 0.6%). Meanwhile, the lowest rate was noted in Ilocos at -0.5 percent.

  Price increments on a quarterly basis were generally faster in Visayas than those in Luzon and Mindanao.

• By Commodity Group, Quarter-to-Quarter

  The country’s quarter-to-quarter change went up 0.9 percent in the second quarter from 0.5 percent in the first quarter. All the commodity groups recorded higher quarterly gains except in FLW index whose growth was 1.5 percent, lower than its previous quarter’s rate of 2.8 percent.

  Higher prices of processed eggs effected a 1.4 percent uptick in its group’s index in the Philippines and AONCR from 0.8 percent in the last quarter. In NCR, the increment in the group’s index slid to 0.3 percent from 0.6 percent.

  The general upward price adjustments in meals outside the home raised the miscellaneous foods index in the Philippines and AONCR by 1.1 percent and 1.2 percent in the second quarter from -0.9 percent in the first quarter of 2012. In addition, relatively higher prices of selected items like sugar, coffee, tea and table salt were observed during the quarter. The group’s index in NCR however increased at a slower pace of 0.1 percent from 0.2 percent as price hikes in coffee, cocoa, tea, sugar and fruit sauces were tempered by the price declines in cooking oil and selected spices and seasonings.

  Higher add-ons in the prices of rice in ten regions pushed up the rice index in the country and AONCR by 1.0 percent from their respective previous quarter’s rate of 0.2 percent. The highest quarterly rate of 3.0 percent was posted in SOCCSKSARGEN. Meanwhile, the growth in the rice index in NCR still stood at 0.3 percent.

  The quarterly hike in the meat index in the Philippines and AONCR was registered at 0.2 percent and in NCR, 0.1 percent. It resulted from higher prices of pork, beef, and selected processed meat products observed in selected regions.

  With the upward price adjustments in corn, the group’s index in the Philippines and AONCR rose 1.2 percent and in NCR, 1.6 percent.

  The favorable weather conditions during the quarter contributed to the increases in the volume of supplies of vegetables in the market thereby decreasing their prices. The fruit and vegetables index in the three areas continued to post negative quarterly rates: Philippines, -2.2 percent from its corresponding last quarter rate of -2.0; NCR, -1.5 percent from -15.7 percent; and AONCR, -2.3 percent from -1.8 percent.

• The FLW index in the Philippines and AONCR moved up at slower rates of 1.5 percent and 1.6 percent from 2.8 percent. Higher prices of firewood and charcoal along with the increased charges in electricity rates were toned down by the series of nationwide price roll backs in LPG during the quarter. Meanwhile, the FLW index in NCR had a zero growth as price gains in charcoal, candles and higher charges in electricity rates were offsetted by the price reductions in LPG and kerosene.

• Tuition fee hikes during the opening of classes in June generally pushed up the services index in the Philippines and AONCR to 1.0 percent in the second quarter from 0.5 percent in the first quarter and in NCR, 0.4 percent from 0.3 percent. Upward price adjustments in selected school supplies and medicines together with the increased charges for selected medical services in some regions contributed to the uptrend.

• The 0.8 percent growth in the miscellaneous index in the three areas was due to price add-ons on selected items in household operations and personal care and effects in many regions.

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/content/consumer-price-index-bottom-30-income-households-philippines-january-2010-december-2010)