Month-on-Month Growth Rates

The month-on-month growth rate of the seasonally adjusted CPI for all items at the national level improved to 0.1 percent in June from 0.7 percent in May. Negative rates were noted in housing, water, electricity, gas and other fuels index at 1.1 percent from a positive increment of 1.0 percent and in recreation and culture index, -0.1 percent from 0.1 percent. Moreover, a slowdown was seen in alcoholic beverages and tobacco index at 0.6 percent from 0.8 percent. On the other hand, higher monthly rates were correspondingly recorded in the indices of education and restaurant and miscellaneous goods and services at 0.9 percent and 0.2 percent from 0.3 percent and 0.1 percent, respectively. The same previous month’s rates were noticed in the indices of the other commodity groups.

Seasonal factors such as tuition fee hikes and higher demand of selected items due to the opening of classes pushed up the indices of all the commodity groups relative to the expected trend.

Compared to a month ago, the seasonally adjusted CPI in NCR for education accelerated by 1.8 percent in June from 0.3 percent in May; furnishing, household equipment and routine maintenance of the house, 0.4 percent from 0.2 percent; and transport, 0.3 percent from 0.1 percent. Meanwhile, the non-food index declined by 0.4 percent from a growth of 0.3 percent last month. That for alcoholic beverages and tobacco index remained at its previous month’s rate of 0.5 percent.

The indices of alcoholic beverages and tobacco; non-food; furnishing, household equipment and routine maintenance of the house; and education were pulled up by the seasonal factors like the increase in tuition fees and bigger demand for some items due to the opening of classes this school year. On the contrary, these seasonal factors did not raise the transport index during the month.

In AONCR, the seasonally adjusted CPI for education went up 0.7 percent in June from 0.4 percent in May. Downward adjustments were however posted in the housing, water, electricity, gas and other fuels index at -0.4 percent from 0.8 percent and in recreation and culture index, -0.1 percent from a zero growth. In addition, the clothing and footwear index eased to 0.2 percent from 0.3 percent and furnishing, household equipment and routine maintenance of the house index, 0.1 percent from 0.2 percent. Meanwhile, the indices of alcoholic beverages and tobacco; health and restaurant and miscellaneous goods and services retained their last month’s rates.

Relative to the expected trend, the indices of alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; furnishing, household equipment and routine maintenance of the house; health; recreation and culture; education; and restaurant and miscellaneous goods and services were pushed up by the tuition fee hikes and the bigger demand for some goods during the opening of classes.