• The country’s inflation for the bottom 30% income households went up 1.2 percent in the second quarter of 2016. It was recorded at 1.1 percent in the first quarter of 2016 and 2.1 percent during the same quarter in 2015. Higher annual increase was noted in housing and repairs (H&R) index.

  • Similarly, inflation in the National Capital Region (NCR) inched up 0.4 percent in the second quarter of 2016. Annual growth in the previous quarter was at -0.5 percent and in second quarter of 2015, -0.1 percent. Faster annual increments were observed in all the commodity groups except for the indices of fuel, light and water (FLW) and services.

  • Following the same trend, inflation in Areas Outside the National Capital Region (AONCR) gained by 1.2 percent in the second quarter of 2016. Inflation in the first quarter of 2016 was pegged at 1.1 percent and during the same quarter a year ago, 2.1 percent. The indices of food, beverages and tobacco (FBT) and H&R posted higher annual mark-ups during the quarter (Table 8).

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

First Quarter 2008 - Second Quarter 2016

• The quarter-to-quarter inflation for the bottom 30% income households at the national level rose 0.4 percent in the second quarter of 2016. Last quarter, it went up by 0.2 percent. Upward adjustments in the prices of the heavily-weighted food items such as rice, corn, milk, eggs, vegetables, meat and selected spices and seasonings were noted in many regions. The tuition fee hikes during the opening of classes in June and price add-ons in LPG and kerosene in many provinces also contributed to the uptrend (Table 7).

• By Region, Year-on-Year
  

• Annual inflation in NCR advanced 0.4 percent in the second quarter of 2016.

• Inflation in AONCR likewise increased by 1.2 percent during the second quarter of 2016. Eight regions posted higher annual gains during the period with MIMAROPA registering the highest rate of 3.4 percent. Meanwhile, CALABARZON had the lowest rate of 0.2 percent. A zero annual growth was noticed in Western Visayas (Table 8).

• By Commodity Group, Year-on-Year

  At the national level, a higher annual increment of 2.2 percent was seen in the H&R index. The clothing index, however, moved up at a slower pace of 1.2 percent. The FBT index retained its previous quarter growth of 1.5 percent; services index, 1.2 percent; and miscellaneous index, 0.9 percent. The FLW index still exhibited a negative annual rate of 2.8 percent during the quarter (Table 8).

  The country’s food alone index rose 1.5 percent during the second quarter of 2016. Last quarter, it was recorded at 1.3 percent.

  Higher annual upticks were noted in the indices of corn at 0.9 percent; cereal preparations, 0.9 percent; eggs, 1.9 percent; fruits and vegetables, 7.5 percent; and meat, 0.6 percent. On the other hand, the annual gain in the dairy products index eased to 1.4 percent; fish index, 1.2 percent; and miscellaneous foods index, 1.2 percent. The index for rice continued its downward movement as it registered -0.1 percent during the period. (Table 10).

  • In NCR, annual growth of the FBT index climbed by 2.2 percent; clothing index, 0.7 percent; H&R index, 1.4 percent; and miscellaneous index, 0.9 percent. On the contrary, the FLW and services indices declined by 10.3 percent and 0.3 percent, respectively (Table 8).

    The annual change in the food alone index in NCR picked up 2.3 percent during the quarter. It was pegged at 1.1 percent last quarter.

    Double-digit annual growth was seen in the corn index at 40.4 percent and fruits and vegetables index, 15.4 percent. In addition, higher annual increases were observed in the indices of rice at 0.1 percent; cereal preparations, 1.5 percent; fish, 2.6 percent; and meat, 4.2 percent. However, the annual adjustment in the dairy products index decreased by 0.5 percent; eggs index, -0.9 percent; and miscellaneous foods index, -1.0 percent (Table 10).

  • In AONCR, higher annual gains were noticed in the indices of FBT and H&R at 1.5 percent and 2.2 percent, respectively. Annual movement in the clothing index, however, went up at a slower pace of 1.2 percent. The indices of services and miscellaneous retained their corresponding previous quarter’s growths of 1.3 percent at 0.9 percent. The FLW index continued to move downward as it recorded -2.6 percent this quarter (Table 8).

    The annual adjustment in the food alone index in AONCR remained at 1.4 percent during the quarter.

    Higher annual upticks were noted in the indices of corn at 0.9 percent; eggs, 1.9 percent; fruits and vegetables, 7.4 percent; and meat, 0.6 percent. Meanwhile, annual add-on in dairy products index slowed down to 1.4 percent; fish index, 1.2 percent; and miscellaneous foods index, 1.3 percent. That for the cereal preparations index retained its last quarter’s rate of 0.8 percent.

    The index for rice registered an annual decline of 0.1 percent in the second quarter of 2016 as 11 regions exhibited either slower or negative rates. The lowest annual change was in Bicol Region at -5.0 percent. On the other hand, the highest rate of 4.2 percent was observed in Central Visayas (Table 10).

• By Region, Quarter-to-Quarter

  Prices of items for this particular group of consumers in NCR went up 0.6 percent in the second quarter of 2016. Last quarter, it was pegged at -0.5 percent. It primarily resulted from the 0.5 percent growth in the heavily-weighted FBT index. Moreover, all the other commodity groups registered higher increases except for the services index which had a zero growth.

  Consumer prices for the bottom 30% income households in AONCR generally picked up by 0.4 percent in the second quarter. The FLW index rose 1.1 percent after it recorded -1.9 percent last quarter. In addition, the services index moved up at a faster rate of 0.5 percent. On the other hand, a slower pace of 0.3 percent was noticed in clothing and H&R indices. The indices of FBT and miscellaneous moved at their first quarter’s rates of 0.4 percent and 0.3 percent, respectively.

  Ten regions had higher quarterly increments. The highest growth of 1.3 percent was seen in SOCCSKSARGEN and ARMM. Meanwhile, the lowest rate of -0.7 percent was noted in CAR.

  Among the three big areas of the country, price add-ons in consumer items were generally higher in Mindanao compared to those in Luzon and Visayas areas (Table 7).

• By Commodity Group, Quarter-to-Quarter

  On a quarterly basis, prices of consumer items for the bottom 30% income group at the national level inched up 0.4 percent in the second quarter of 2016. Increment in the services index was higher at 0.5 percent. Moreover, the FLW index picked up by 1.1 percent compared to -1.9 percent last quarter. Meanwhile, add-ons in the other commodity groups during the quarter were slower except for the indices of FBT and miscellaneous which retained their last quarter’s rates of 0.4 percent and 0.3 percent, respectively (Table 7).

  The rice index in AONCR increased by 0.2 percent in the second quarter of 2016 as seven regions registered higher rates. The highest growth of 2.7 was noticed in ARMM while the lowest rate was seen in CAR at -1.3 percent. The group’s index in NCR likewise went up by 0.6 percent. For the Philippines, the group’s index rose 0.2 percent.

  Lower production of corn during the quarter raised its prices in many regions. Thus, the group’s index in AONCR accelerated by 1.6 percent. The increase in the corn index in NCR, however, was lower at 5.4 percent during the quarter. At the national level, the corn index climbed by 1.6 percent.

  The miscellaneous foods index in AONCR gained by 0.6 percent and in NCR, 1.1 percent. This was attributed to higher prices of sugar, cooking oil, and selected spices and seasonings. The group’s index at the national level increased by 0.6 percent.

  Higher prices of vegetables can be attributed to the decrease in production during the quarter. This effected a 0.3 percent growth in the fruits and vegetables index in AONCR. On the contrary, the group’s index in NCR dropped by 0.2 percent as prices of eggplant and selected leafy vegetables were generally lower during the quarter. At the national level, the fruits and vegetables index exhibited a 0.3 percent growth.

  The dairy products index in AONCR inched up 0.3 percent and in NCR, 0.1 percent. Milk and milk products were generally priced higher in selected regions during the quarter. At the country level, the group’s index advanced by 0.3 percent.

  Enough supplies of selected fish species in the markets pushed down their prices in selected regions. Thus, the fish index in NCR and AONCR declined by 0.1 percent. For the Philippines, the fish index fell by 0.1 percent.

  Upticks in the prices of beef, chicken and processed meat were tempered by the price reductions in pork in many regions. Hence, the meat index in AONCR moved up at a slower rate of 0.1 percent. On the other hand, the meat index in NCR rose 0.8 percent due to higher prices of beef, chicken and processed meat. At the national level, the meat index registered a 0.1 percent growth during the quarter (Table 9).

• Price mark-ups in kerosene and higher charges for the electricity rates in many regions raised the FLW index in AONCR by 1.1 percent. In NCR, price add-ons in kerosene and LPG pushed up the FLW index in the area by 1.6 percent. At the national level, the FLW index increased by 1.1 percent.

• The services index in AONCR gained by 0.5 percent as gasoline and diesel were priced higher in many regions. Contributing also to the uptrend were the tuition fee hikes in June and higher prices of selected school supplies in many regions. In NCR, the group’s index had a zero growth. At the country level, the service index advanced 0.5 percent.

• Upward adjustments in the prices of selected construction materials in many provinces were noted during the quarter. Hence, the H&R index in NCR and AONCR inched up 0.3 percent. For the Philippines, the H&R index rose by 0.3 percent.

• The miscellaneous index in NCR picked up by 0.8 percent during the quarter. This can be attributed to increments in the prices of selected items for household operations. Likewise, the miscellaneous index in AONCR went up by 0.3 percent brought about by the price increase in some cleaning articles and personal effects in selected provinces. At the national level, the miscellaneous index moved up 0.3 percent (Table 7).

Note:

1. The second survey report from Tawi-tawi for June 2016 was not received as of August 1, 2016.
   
2. 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).