• The country’s year-on-year inflation for the bottom 30% income households picked up to 3.5 percent in the third quarter from 3.1 percent in the second quarter of 2013. Higher quarterly inflation in food, beverages and tobacco (FBT), fuel, light and water (FLW) and services indices brought about the uptrend. The third quarter average inflation a year ago was 3.1 percent.

  • Inflation in the National Capital Region (NCR) however decelerated to 1.1 percent in the third quarter from 1.9 percent in the second quarter of 2013. It resulted from the slower annual increments in all the commodity groups except in services index.

  • Likewise, inflation in Areas Outside National Capital Region (AONCR) went up to 3.5 percent in the third quarter of 2013 from 3.0 percent in the second quarter of the year. This was attributed to higher annual mark-ups in the indices of FBT, FLW and services during the quarter.

• The quarter-to-quarter inflation for the bottom 30% income households in the Philippines rose 1.7 percent in the third quarter from 0.5 percent in the second quarter of 2013. This was attributed to upward price adjustments in the heavily-weighted food items such as rice, fruits, vegetables, milk and milk products, fish and meals eaten outside the home in many regions. Contributing also to the uptrend were the price hikes in petroleum products together with higher charges for water and electricity rates.

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

First Quarter 2007 - Third Quarter 2013

• By Region, Year-on-Year
  

• Inflation in NCR moved up at a slower pace of 1.1 percent in the third quarter from 1.9 percent in second quarter of 2013.

• On the other hand, inflation in AONCR accelerated to 3.5 percent during the quarter from 3.0 percent in the second quarter of 2013. Twelve regions recorded higher inflation rates with Zamboanga Peninsula and Northern Mindanao posting the highest annual rate of 5.1 percent. The lowest annual change remained in Central Luzon at 1.3 percent.
  

• By Commodity Group, Year-on-Year

  On a year-to-year basis, the annual adjustment in the FBT index increased to 4.1 percent in the third quarter 2013 from 3.5 percent in the second quarter; FLW index, 1.9 percent from 0.7 percent; and services index, 2.2 percent from 1.6 percent. On the other hand, the annual mark-ups in the clothing index eased to 2.1 percent from 2.4 percent; housing and repairs (H&R) index, 2.5 percent from 3.4 percent; and miscellaneous index, 1.8 percent from 1.9 percent.

  The annual growth in the food alone index in the Philippines escalated to 3.1 percent in the third quarter from 2.5 percent in the second quarter of 2013.

  A higher annual gain was recorded in the rice index at 4.1 percent in the third quarter of 2013 from 0.7 percent in the last quarter and meat index, 3.0 percent from 2.5 percent. Meanwhile, the corn index posted a slower annual uptick at 4.9 percent from 5.9 percent; cereal preparations index, 2.6 percent from 3.2 percent; dairy products index, 1.3 percent from 1.6 percent; eggs index, 1.4 percent from 1.7 percent; fish index, 3.1 percent from 4.5 percent; and fruits and vegetables index, 3.8 percent from 4.3 percent. The annual movement in miscellaneous foods index dropped by 0.1 percent from 1.3 percent.
  

  • In NCR, the annual change in the services index rose 0.7 percent in the third quarter from 0.4 percent in the last quarter. The rest of the commodity groups moved at a slower pace with the FLW index still recording a negative annual rate of 2.2 percent from -2.7 percent.

    The inflation in the food alone index in NCR decelerated to 1.1 percent in the third quarter from 2.3 percent in the second quarter of 2013.

    Annual declines were correspondingly recorded in the indices of fruits and vegetables and dairy products at -3.4 percent and -2.0 percent from 5.6 percent and 1.5 percent, respectively. Moreover, the annual increase in the fish index eased to 0.3 percent from 0.4 percent; cereal preparation index, 1.7 percent from 3.0 percent; meat index, 1.2 percent from 2.4 percent; and miscellaneous foods index, 0.6 percent from 2.7 percent. The rest of the commodity groups recorded faster annual growths.

  • In AONCR, the annual movement in FBT index was higher at 4.0 percent in the third quarter of 2013 from 3.5 percent in the second quarter; FLW index, 2.0 percent from 0.8 percent; and services index, 2.2 percent from 1.6 percent. The rest of the commodity groups have slower annual increments.

    The food alone index in AONCR picked up 3.1 percent in the third quarter from 2.5 percent in the second quarter of 2013.

    The annual change in the rice index was higher at 4.1 percent during the quarter from 0.7 percent in the second quarter of 2013. Fourteen regions had higher annual inflation with the biggest jump of 7.6 percentage points noticed in Northern Mindanao (8.3% from 0.7%).

    Moreover, the annual adjustment in meat index climbed 3.0 percent in the third quarter of 2013 from 2.5 percent in the previous quarter. Slower annual rates were however seen in the rest of the food groups with the miscellaneous foods index recording an annual drop of 0.2 percent.

• By Region, Quarter-to-Quarter

  Compared to a quarter ago level, consumer prices in NCR climbed 1.2 percent in the third quarter of 2013 from its previous quarter rate of -0.1 percent. The FBT index advanced by 1.4 percent in the third quarter from 0.3 percent in the second quarter; FLW index, 1.2 percent from -1.9 percent; and services index, 0.4 percent from 0.2 percent. The rest of the commodity groups have slower quarterly mark-ups except the miscellaneous index whose rate remained at 0.1 percent.

  Prices of consumer items in the bottom 30% income group in AONCR likewise went up 1.7 percent in the third quarter from 0.5 percent in the second quarter of 2013. Higher upticks recorded in the indices of FBT, clothing, FLW and services contributed to the uptrend.

  Higher quarterly growth rates were seen in 15 regions. The biggest increase of 2.3 percentage points (2.6% from 0.3%) was registered in SOCCSKSARGEN.

  Among the three big areas of the country, price gains in consumer items on a quarterly basis were generally faster in Visayas compared to Luzon and Mindanao.

• By Commodity Group, Quarter-to-Quarter

  Prices of items for this particular group of consumers in the Philippines grew by 1.7 percent in the third quarter from 0.5 percent in the second quarter of 2013. The heavily-weighted FBT index moved up 1.9 percent from 0.5 percent; clothing index, 0.6 percent from 0.5 percent; FLW index, 1.0 percent from -0.4 percent; and services index, 1.2 percent from 0.6 percent. On the other hand, the H&R index moved up at a slower pace of 0.7 percent from 0.9 percent while the miscellaneous index retained its last quarter’s rate of 0.5 percent.

  All the regions have higher growth rates in the rice index. Thus, the Philippines and AONCR’s aggregate index for rice jumped by 4.5 percent during the quarter of 2013 from 0.1 percent in the previous quarter. Among the regions in AONCR, SOCCSKSARGEN registered the highest rate at 9.1 percent. Likewise, quarterly increment in the rice index in NCR went up 4.6 percent.

  The fruit and vegetable index in the Philippines and AONCR picked up 2.0 percent and 1.9 percent, respectively from 0.2 percent in the previous quarter. The weather disturbance that hit Northern Luzon during the quarter lowered supplies of vegetables in some regions thus, raising their prices. The upward price adjustments in fruits such as papaya and mango also contributed to the uptrend. In NCR, the group’s index likewise jumped 3.5 percent brought about by the price increases in camote, tomato, eggplant and ampalaya.

  The corn index in NCR advanced 2.5 percent from 0.7 percent. On the contrary, the increase in the group’s index in AONCR and in the Philippines decelerated to 0.5 percent in the third quarter from 1.0 percent in the previous quarter. Seven regions had slower rates during the quarter.

  The dairy products index in the Philippines and AONCR inched up 0.4 percent in the third quarter due to higher prices of milk and milk products. On the other hand, the dairy products index in NCR dropped by 0.2 percent as prices of powdered milk in the area went down.

  The eggs index in the Philippines and AONCR rose 0.4 percent and in NCR, 0.9 percent during the quarter.

  Lower supplies of selected fish species, crabs and shells in the markets were observed in many regions. This was due to the prevalence of stormy weather conditions which limited fishermen in their activity. Thus, the fish index in the Philippines and AONCR grew 0.2 percent and in NCR, 0.1 percent.

  Pork and beef were generally priced higher in many regions. Hence, the meat index in the Philippines and AONCR moved up 0.7 percent. Price gains in pork in NCR resulted to a 0.3 percent growth in the group’s index.

  The miscellaneous foods index in the Philippines and AONCR increased 0.7 percent and in NCR, 0.4 percent. This can be attributed to price gains in common spices and seasonings in most of the regions.
  

• With higher rates in sewing charges for clothing in many regions, the clothing index in the Philippines registered 0.6 percent growth; NCR, 0.1 percent; and AONCR, 0.7 percent.

• The H&R index in the Philippines and AONCR moved up 0.7 percent during the quarter due to higher salaries of electricians, carpenters and plumbers together with the price increments in selected construction materials. In NCR, the group’s index recorded zero growth.

• Price hikes in LPG and kerosene pushed up the FLW index in AONCR and in the Philippines by 1.0 percent and in NCR, 1.2 percent.

• Upward adjustments in the prices of gasoline and diesel were generally noted nationwide. Hence, the services index in the Philippines and AONCR went up 1.2 percent and in NCR, 0.4 percent. Higher charges in medical, water and electricity rates and movie admission fees in selected regions also contributed to the uptrend.

• With price mark-ups in selected items for household operation and personal effects, the miscellaneous index in the Philippines and AONCR inched up 0.5 percent and NCR, 0.1 percent.

Note:

1. The second survey reports from Tawi-tawi for July, August and September were not received as of October 2013.
   
2. Monthly CPIs for the bottom 30% income households by province and selected cities are also available upon request at NSO, Industry and Trade Statistics Department, Economic and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).