• Year-on-year inflation decelerated to 6.3 percent in August from 6.8 percent in July brought about by the slower rates in the prices of food, beverages and tobacco (FBT), fuel, light and water (FLW) and services. The August 2000 inflation was 4.6 percent.

   

  • Likewise, inflation rate in the National Capital Region (NCR) dropped to 7.4 percent in August from 8.3 percent in July primarily due to the decline in the prices of food.

  • Inflation rate in Areas Outside the National Capital Region (AONCR) slid to 5.9 percent in August from 6.3 percent in July due to the slower rates in FBT, FLW and services.

   

• Month-on-month inflation slipped to 0.1 percent in August from 0.6 percent in July as prices of FBT remained stable and inflation in fuel, light and water (FLW) and services slowed down.

  

>By Region, Year-on-Year

*The inflation rate for the National Capital Region (NCR) was 7.4 percent in August compared to 8.3 percent in July.

*August inflation rate of 5.9 percent in Areas Outside National Capital Region (AONCR) was slower than the 6.3 percent in July. Twelve regions posted lower inflation rates. The biggest decrease was recorded in Ilocos at 1.1 percentage points followed by Cagayan Valley and ARMM at 0.7 percentage point. The lowest rate was registered in Central Mindanao at 3.9 percent while the highest rate was observed in Eastern Visayas at 7.6 percent.

>By Commodity Group, Year-on-Year

The inflation rate for FBT decelerated to 4.4 percent in August from 5.2 percent in July; FLW, 11.1 percent from 12.9 percent; and services, 11.4 percent from 12.1 percent. On the other hand, the rate for H&R went up to 7.4 percent from 7.2 percent while the rates for clothing and miscellaneous items moved at their respective July rates of 4.1 percent and 4.3 percent.

• The inflation rate for food alone slid to 4.2 percent in August from 5.0 percent in July. Except for dairy products whose rate moved up to 14.2 percent in August from 13.9 percent in July, all the other food groups moved at slower rates. The inflation rate of rice slowed down to 0.3 percent this month from 0.7 percent a month ago; corn, 1.4 percent from 1.6 percent; cereal preparations, 5.8 percent from 5.9 percent; eggs, 6.5 percent from 7.0 percent; fish, 6.6 percent from 7.0 percent; fruits and vegetables, 2.0 percent from 5.4 percent; meat, 6.2 percent from 7.1 percent; and miscellaneous foods, 4.4 percent from 5.0 percent.

In NCR, except for H&R and miscellaneous items whose prices moved at their previous month's rates, all the other commodity groups registered slower rates. The inflation rate for FBT decreased by 1.1 percentage points; clothing, 0.1 percentage point, FLW, 3.4 percentage points; and services, 1.2 percentage points.

• The inflation rate for food alone in NCR slowed down to 5.4 percent in August from 6.5 percent in July. Price movements in all the food groups decelerated in August except for dairy products whose rate went up to 15.9 percent this month from 15.7 percent a month ago. Lower rates were seen in the prices of rice, -0.2 percent in August from 0.3 percent in July; corn, 4.8 percent from 12.9 percent; cereal preparations, 9.9 percent from 10.8 percent; eggs, 16.8 percent from 20.6 percent; fish, 4.7 percent from 6.9 percent; fruits and vegetables, -0.5 percent from -0.2 percent; meat, 6.0 percent from 8.6 percent; and miscellaneous foods, 6.9 percent from 7.6 percent.

*For AONCR, the rate of FBT slipped to 4.0 percent in August from 4.7 percent in July; FLW, 9.1 percent from 10.2 percent; and services, 11.7 percent from 12.1 percent. Meanwhile, clothing slightly advanced to 3.7 percent from 3.6 percent and H&R, 7.7 percent from 7.4 percent. Miscellaneous items moved at its July rate of 4.0 percent.

• The inflation rate for food alone had a slower growth of 3.9 percent in August from 4.6 percent in July.

• Lower rates were noted in the prices of fish, 7.0 percent from 7.1 percent; fruits and vegetables, 2.7 percent from 7.3 percent; meat. 6.3 percent from 6.4 percent; and miscellaneous foods, 3.4 percent from 3.9 percent. On the other hand, prices of cereal preparations increased to 4.3 percent from 4.1 percent; dairy products, 13.5 percent from 13.2 percent; and eggs, 3.4 percent from 2.9 percent. The price of corn moved at the same rate of 1.4 percent as in the previous month.

• The price of rice was 0.4 percent higher in August, slower than the 0.8 percent recorded in July. Ten regions posted lower rates. The biggest decrease was still observed in Bicol at 2.3 percentage points followed by Ilocos at 1.4 percentage points. In addition, six regions continued to register negative rates.

>By Region, Month-on-Month

*Prices in NCR dropped by 0.2 percent in August from 0.8 percent in July. This was mainly brought about by the decline of FBT prices in the area by 0.8 percent from an increase of 0.9 percent in July. Lower rates were also seen in the prices of clothing, 0.2 percent from 0.4 percent; H&R, 0.1 percent from 1.0 percent; FLW, 1.1 percent from 1.6 percent; and services, 0.1 percent from 0.4 percent. A higher rate was however noted in the miscellaneous items, 0.2 percent from zero growth.

*Similarly, prices in AONCR slowed down to 0.3 percent in August from 0.4 percent in July as prices of FBT and services moved by 0.3 percent from their respective rates of 0.6 percent and 0.4 percent last month. The rate of clothing slightly picked up to 0.2 percent from 0.1 percent; H&R, 0.4 percent from 0.3 percent; and miscellaneous items, 0.3 percent from 0.2 percent. The price of FLW remained stable as it posted zero growth this month. The lowest month-on-month rate was in Central Visayas, Western Mindanao, Northern Mindanao and ARMM at 0.1 percent while the highest rate was in CAR at 0.7 percent.

>By Commodity Group, Month-on-Month

A zero growth posted in FBT including the slowdowns in H&R, to 0.2 percent from 0.6 percent; FLW, 0.4 percent from 0.9 percent; and services, 0.2 percent from 0.4 percent contributed to a lower inflation rate in August of 0.1 percent from 0.6 percent in July. On the other hand, the rate of miscellaneous items rose to 0.3 percent from 0.1 percent while clothing moved at its July rate of 0.2 percent.

The prevalence of favorable weather conditions throughout the country during the month brought sufficient supply of vegetables in NCR and in many regions. In AONCR, nine of the fifteen regions registered negative rates that went to as low as 4.3 percent in Caraga. Moreover, abundant supply of some fruits like pineapple, banana and papaya in the markets brought discounted prices for these fruits. Thus, the group's index in the three areas went down: -1.0 percent in the Philippines, -3.3 percent in NCR and 0.3 percent in AONCR.

The bumper harvest of corn brought plentiful supply of corn to the whole country. This pushed down the group's index to -1.3 percent in the Philippines, -6.9 percent in NCR and -1.2 percent in AONCR. Except for Central Luzon whose rate went up to 0.9 percent in August from 0.4 percent in July and Western Visayas that posted zero growth, all the other regions recorded negative rates in August.

Sufficient supply of chicken and pork in NCR caused the meat index in the area to dip by 2.1 percent. In AONCR, the group's index still posted a negative rate of 0.1 percent as prices of chicken also declined in some regions. Thus, the meat index in the Philippines decreased further to -0.7 percent in August.

The good catch by fishermen due to good weather conditions supplied abundant fish in the markets. The indicator fish species were quoted lower in NCR and in some regions. The index slid to -0.1 percent in the Philippines, -0.4 percent in NCR and 0.1 percent in AONCR compared to their corresponding rates of 1.0 percent, -0.2 percent and 1.3 percent.

Cold weather conditions brought abundant supply of eggs in NCR, thus prices in the area were down by 2.7 percent in August. On the other hand, in AONCR, prices of eggs advanced by 0.8 percent. This was however, lower than the 1.5 percent increase recorded last month. Overall, the group's index went down by 0.1 percent this month from 3.3 percent in July.

Lower price of NFA rice sold in NCR during the month pushed down the index of rice in the area by 0.1 percent. Meanwhile, the price of rice in AONCR slightly went up to 0.7 percent from 0.6 percent last month with eight regions posting higher month-on-month rates. This resulted to a 0.6 percent growth in the group's index in the Philippines.

The miscellaneous foods index rose by 0.1 percent in NCR and 0.5 percent in AONCR in August brought about by the increments in the prices of sugar, powdered tonic drink, cooking oil, instant coffee and some seasonings like catsup and patis. Similarly, prices of meals eaten outside in AONCR were higher during the month. All these added to a 0.3 percent increase in the national index.

Price add-ons in biscuits, noodles and flour caused the index for cereal preparations in the Philippines and AONCR to increase by 0.3 percent in August, the same rate posted in July. In NCR, the group's index also moved up at 0.2 percent, lower than the 0.4 percent recorded last month.

Prices of milk, cheese and butter were still up during the month. This was effected by the continued higher importation price of raw materials for milk and milk products. Thus, the index for dairy products picked up by 0.4 percent in the three areas, lower than their July rate of 0.9 percent.

*Higher prices of selected construction materials like plywood, lumber, common wire nails, and tumbler switch along with higher rental rates in many regions including NCR were noted. The H&R index increased by 0.2 percent in the Philippines, 0.1 percent in NCR and 0.4 percent in AONCR from their corresponding July rates of 0.6 percent, 1.0 percent and 0.3 percent.

*The services index accelerated by 0.2 percent in the Philippines, 0.1 percent in NCR and 0.3 percent in AONCR. These were however lower than their July rate of 0.4 percent. This was due to the increases in the prices of medicines, texbooks, newspaper, hospital and medical charges and rates for personal and recreational services together with the increment in the salary for household help.

*Items for household operations like detergent bar, broom and floorwax along with selected items for personal care and effects (powder, toilet paper, sanitary napkins and shampoo) and some items for household furnishing and equipment were priced higher during the month. These raised the miscellaneous items index in the Philippines and AONCR by 0.3 percent and 0.2 percent in NCR.

*Higher purchased power adjustment (PPA) and currency exchange rate adjustment (CERA) for electricity in NCR pushed up the FLW indices in the Philippines and NCR by 0.4 percent and 1.1 percent, respectively. These however, were lower than their corresponding July rates of 0.9 percent and 1.6 percent. For AONCR, prices of FLW items remained stable as it posted zero growth during the month.

Results of the 1^st and 2^nd phase surveys from Sulu were not received.