FEBRUARY AND JANUARY 2002

• Year-on-year inflation further decelerated to 3.4 percent in February from 3.8 percent in January. This was brought about by the slowdown in the inflation rates of all the commodity groups except for clothing. Inflation a year ago was 6.7 percent.

  • Likewise, inflation in the National Capital Region (NCR) decreased by 0.6 percentage point at 4.6 percent in February from 5.2 percent in January due to the downward movements in the rates of housing and repairs (H&R), fuel, light and water (FLW), services and miscellaneous items.

  • Inflation rate in Areas Outside the National Capital Region (AONCR) slid to 2.8 percent in February from 3.2 percent in January as all of the commodity groups posted lower rates.

• Month-on-month inflation declined to -0.2 percent in February from 0.4 percent in January. This was mainly effected by the significant reduction in the prices of food particularly fish, fruits, vegetables and meat. The drop in the prices of LPG and kerosene along with the lower rate for electricity consumption in NCR also contributed to the downtrend.

  

>By Region, Year-on-Year

* The inflation rate for the National Capital Region (NCR) further moved down to 4.6 percent in February from 5.2 percent in January.

*Inflation in Areas Outside the National Capital Region (AONCR) at 2.8 percent in February was slower than the 3.2 percent in January. Nine regions recorded lower inflation rates. The biggest decrease was observed in Southern Tagalog at 0.9 percentage point followed by Bicol and Western Visayas at 0.6 percentage point. The lowest rate was still posted in Cagayan Valley at 0.8 percent while the highest rate at 4.9 percent was still in Eastern Visayas.

>By Commodity Group, Year-on-Year

Except for clothing whose inflation rate remained at 2.8 percent, all the other commodity groups registered lower rates in February. The inflation rate for food, beverages and tobacco (FBT) eased to 1.7 percent in February from 1.8 percent in January; H&R, 5.5 percent from 6.5 percent; FLW, 9.0 percent from 10.8 percent; services, 5.1 percent from 5.7 percent; and miscellaneous items, 2.3 percent from 2.7 percent.

• The inflation rate for food alone slightly slowed down to 1.5 percent in February from 1.6 percent in January brought about by the decreases in the prices of corn, fruits and vegetables. The inflation rate of corn was still negative at -0.3 percent in February from -1.7 percent in January and fruits and vegetables, -5.9 percent from -6.0 percent. Moreover, slower positive rates were observed in the prices of cereal preparations, 3.2 percent in February from 3.3 percent in January; dairy products, 7.7 percent from 10.4 percent; meat,1.8 percent from 2.6 percent; and miscellaneous foods, 3.2 percent from 3.6 percent. On the other hand, inflation rate for rice increased to 0.3 percent from -0.1 percent; eggs, 5.1 percent from 4.7 percent; and fish, 3.9 percent from 3.4 percent.

In NCR, inflation rate for H&R slowed down by 1.3 percentage points; FLW, 4.8 percentage points; services, 1.5 percentage points; and miscellaneous items, 0.7 percentage point. Meanwhile, FBT and clothing rose by 0.7 percentage point and 0.2 percentage point, respectively.

• A negative rate was still registered in the inflation rate for food alone in NCR at -0.1 percent from the -0.7 percent recorded in January. Negative rates were also seen in the prices of fish, -5.6 percent in February from -9.0 percent in January; fruits and vegetables, -9.3 percent from -12.5 percent; and meat, -0.4 percent from zero growth. In addition, lower rates were noted in the prices of dairy products, 8.8 percent from 11.6 percent; and miscellaneous foods, 3.9 percent from 5.1 percent. However, higher rates were posted in the prices of rice, 0.3 percent from 0.2 percent; corn, 7.0 percent in February from -3.1 percent; cereal preparations, 3.7 percent from 3.4 percent; and eggs, 5.6 percent from 3.9 percent.

In AONCR, all the commodity groups moved at slower rates in February. The rate for FBT slid to 2.1 percent in February from 2.4 percent in January; clothing, 2.3 percent from 2.4 percent; H&R, 3.8 percent from 4.5 percent; FLW, 2.2 percent from 2.8 percent; services, 5.3 percent from 5.6 percent; and miscellaneous items, 2.5 percent from 2.9 percent.

• Inflation rate for food alone at 1.9 percent in February was slower than the 2.3 percent recorded in January.

• Negative rates were observed in the prices of corn, -0.5 percent in February from -1.7 percent and fruits and vegetables, -4.9 percent from -3.8 percent. Also, slowdowns were posted in the prices of cereal preparations, 2.9 percent from 3.3 percent; dairy products, 7.3 percent from 9.9 percent; fish, 6.2 percent from 6.5 percent; meat, 2.8 percent from 3.7 percent; and miscellaneous foods, 2.9 percent from 3.1 percent. Price movements in eggs remained at 4.9 percent.

• The price of rice advanced to 0.3 percent in February from -0.1 percent in January as most of the regions posted higher rates. The biggest jump was noted in Western Mindanao at 1.6 percentage points followed by Cagayan Valley at 1.2 percentage points.

>By Region, Month-on-Month

In general, prices in NCR were reduced by 0.2 percent in February from 0.8 percent in January as the rates of the indices of FBT and FLW declined during the month. The rate of FBT went down to -0.9 percent from -0.2 percent and FLW, -0.3 percent from 6.8 percent. The price of miscellaneous items remained stable as it still posted zero growth this month. Meanwhile, prices of clothing items and H&R rose to 0.5 percent from corresponding last month's rate of 0.3 percent and 1.3 percent and services, 0.2 from zero growth.

Prices in AONCR fell by 0.2 percent in February from 0.4 percent in January mainly due to a 0.5 percent reduction in the price of FBT. Lower rates were also observed in the prices of clothing and H&R, 0.2 percent from 0.4 percent; and services, 0.2 percent from zero growth. The price of miscellaneous items moved at its January rate of 0.2 percent. The lowest month-on-month rate was seen in Cagayan Valley at -0.7 percent while the highest was in Western Mindanao and Central Mindanao at 0.3 percent.

>By Commodity Group, Month-on-Month

ÞThe rates of FBT went down to -0.6 percent in February from 0.3 percent in January and FLW, -0.1 percent from 2.3 percent. These pushed down the month-on-month inflation to -0.2 percent in February from 0.4 percent in January. In addition, the rate of H&R decelerated to 0.3 percent in February from 0.7 percent in January while clothing remained at its previous month's rate of 0.3 percent. However, prices of services and miscellaneous items moved up to 0.2 percent in February from their corresponding last month's rates of zero growth and 0.1 percent.

The prevalence of favorable weather conditions throughout the country brought abundant supply of vegetables in NCR and in many regions. This has brought about markdowns in the prices of vegetables. The group index in NCR continued to post decreases of -6.2 percent in February from -3.0 percent in January. In AONCR, ten of the fifteen regions registered rates that went to as low as -9.7 percent in Cagayan Valley. In addition, abundant supply of bananas, mangoes, pineapples and papayas in the markets including those in NCR caused discounted prices for these fruits. Thus, the group index in the Philippines and AONCR dropped by 4.3 percent and 3.8 percent, respectively.

Lower prices of chicken after the holiday season was observed in NCR and in many regions. The meat index in NCR further declined by -1.3 percent in February from -0.2 percent in January and in AONCR, -0.5 percent from 0.4 percent. These contributed to a 0.7 percent drop in the national index.

The good catch by fishermen due to favorable weather conditions supplied abundant fish in the markets. Indicator fish species were quoted lower in many regions including those in NCR. The fish index slid to -0.6 percent in the Philippines, -1.0 percent in NCR and -0.5 percent in AONCR compared to their respective January rates of 1.5 percent, -0.4 percent and 2.0 percent.

*The increase in the wage for carpenter and higher rental rates in many regions including NCR raised the H&R index in the Philippines by 0.3 percent, 0.5 percent in NCR and by 0.2 percent in AONCR. These rates were however slower than their respective January rates of 0.7 percent, 1.3 percent and 0.4 percent.

*The clothing index accelerated by 0.3 percent in the Philippines, 0.5 percent in NCR and 0.2 percent in AONCR. This was due to the price-add-ons in footwear and in some clothing items and textile materials.

*The services index in the three areas picked up by 0.2 percent in February. Increments in the prices of medicines along with higher medical and dental charges and personal services contributed to the increase. Higher wages of household help were also noticed during the month.

*The FLW index went down by -0.1 percent in the Philippines and -0.3 percent in NCR from their corresponding rates of 2.3 percent and 6.8 percent in January as prices of LPG and kerosene decreased in NCR along with lower purchased power adjustment (PPA) and currency exchange rate adjustment (CERA) in the electricity consumption. In AONCR the index was up by 0.1 percent from -0.2 percent a month earlier due to higher electricity rates in some regions even when price decreases were noted in LPG and kerosene in many areas.

The following survey results from the following provinces were not received as of March 4, 2002:
1. Marawi City - 2^nd phase
2. Sulu - 2^nd phase
3. Tawi-tawi - 1^st phase and 2^nd phase

Note: Inflation rate in NCR for January 2002 was revised due to the updated report done by the Bureau of Agricultural Statistics (BAS) on the price of rice.

INFLATION RATES: JANUARY 2002