JULY AND JUNE 2003
| Inflation Rates, Philippines, All Items | |||
| July | June | Year-to-date | |
| Year-on-year | 3.3 | 3.4 | 3.0 |
| NCR | 4.0 | 4.5 | 3.3 |
| AONCR | 3.1 | 3.0 | 2.9 |
| Month-on-month | 0.1 | 0.9 | |
| NCR | -0.5 | 1.3 | |
| AONCR | 0.5 | 0.7 | |
Year-on-year inflation slightly decelerated to 3.3 percent in July from 3.4 percent in June due to the slowdown in the inflation rate of food, beverages and tobacco (FBT). Inflation a year ago was 2.6 percent.
Likewise, inflation rate in the National Capital Region (NCR) slid by 0.5 percentage point to 4.0 percent in July from 4.5 percent in June as inflation for FBT slowed by 2.2 percentage points.
Inflation rate in Areas Outside the National Capital Region (AONCR) slightly increased to 3.1 percent in July from 3.0 percent in June. Higher inflation rates posted in housing and repairs (H&R), fuel, light and water (FLW) and services items contributed to the uptrend.
Month-on-month inflation improved by 0.8 percentage point to 0.1 percent in July from 0.9 percent in June primarily brought about by the decrease in the prices of food items particularly fish, fruits and vegetables.
CONSUMER PRICE INDEX
(1994=100)
JULY 2003
> By Region, Year-on-Year
The inflation rate in NCR slowed by 0.5 percentage point to 4.0 percent in July from 4.5 percent in June.
Inflation in AONCR slightly picked up to 3.1 percent in July from 3.0 percent in June. Ten regions posted higher inflation rates. The biggest increment at 1.5 percentage points was registered in CAR followed by Cagayan Valley at 0.4 percentage point. The highest rate was recorded in CAR at 5.3 percent while the lowest rate at 2.3 percent was seen in Cagayan Valley, Western Visayas and Eastern Visayas.
> By Commodity Group, Year-on-Year
Inflation rate for FBT slipped to 2.2 percent in July from 2.7 percent in June. On the other hand, inflation for H&R accelerated to 3.0 percent from 2.6 percent; FLW, 9.9 percent from 7.8 percent; services, 5.9 percent from 5.7 percent; and miscellaneous items, 1.9 percent from 1.8 percent. Inflation for clothing still remained at 2.3 percent.
The inflation rate for food alone decelerated to 2.1 percent in July from 2.9 percent in June. Slower rates were observed in the prices of rice, 3.2 percent from 3.5 percent; fish, 0.3 percent from 2.1 percent; fruits and vegetables, 2.7 percent from 6.6 percent; and miscellaneous foods, 2.1 percent from 2.2 percent. However, the price of corn went up to 1.4 percent from 1.0 percent; cereal preparations and dairy products, 4.9 percent from their respective June rates of 4.6 percent and 3.2 percent; eggs, 1.2 percent from 0.8 percent; and meat, 0.5 percent from zero growth.
In NCR, inflation rate for FBT eased to 1.3 percent from 3.5 percent. Meanwhile, inflation for clothing advanced to 3.6 percent from 3.2 percent; H&R, 1.4 percent from 1.2 percent; FLW, 22.8 percent from 18.1 percent; services, 6.8 percent from 6.6 percent; and miscellaneous items, 2.3 percent from 2.2 percent.
The inflation rate for food alone in NCR at 1.2 percent in July was slower than the 3.6 percent posted in June as prices of fish and fruits and vegetables recorded negative rates of 2.3 percent and 5.8 percent, respectively. In addition, the price of rice slowed to 3.3 percent from 3.5 percent. However, the price of corn picked up to 9.9 percent from 5.2 percent; cereal preparations, 6.6 percent from 6.4 percent; dairy products, 6.5 percent from 4.1 percent; eggs, 1.4 percent from -0.1 percent; meat, 0.4 percent from 0.1 percent; and miscellaneous foods, 3.2 percent from 3.0 percent.
In AONCR, inflation rate for H&R went up to 4.0 percent in July from 3.5 percent in June; FLW, 3.2 percent from 2.3 percent; and services, 5.4 percent from 5.3 percent. On the other hand, inflation rates for FBT and clothing correspondingly slid to 2.4 percent and 1.9 percent from their respective June rates of 2.5 percent and 2.0 percent. For three consecutive months, inflation for miscellaneous items still remained at 1.8 percent.
Inflation rate for food alone slipped to 2.4 percent in July from 2.6 percent in June.
The price of rice improved to 3.2 percent from 3.5 percent as eight regions posted lower rates. The biggest decrease was in Western Visayas at 2.0 percentage points followed by Eastern Visayas at 1.5 percentage points.
Moreover, prices of fish and miscellaneous foods also decelerated to 0.9 percent and 1.6 percent, respectively from their corresponding last month's rates of 2.4 percent and 1.8 percent.
The price of corn increased to 1.3 percent in July from 0.9 percent in June; cereal preparations, 4.3 percent from 3.9 percent; dairy products, 4.2 percent from 2.9 percent; eggs, 1.2 percent from 1.1 percent; fruits and vegetables, 5.5 percent from 5.0 percent; and meat, 0.6 percent from 0.1 percent.
> By Region, Month-on-Month
Prices in NCR generally went down by 0.5 percent in July from 1.3 percent in June. This was primarily brought about by the 1.6 percent reduction in the prices of FBT items in July from a 1.6 percent increase last month. In addition, except for H&R items whose prices slightly grew to 0.2 percent from 0.1 percent, all the other commodity groups registered either slower rates or zero growth. Prices of clothing items eased to 0.4 percent from 1.0 percent; services items, 0.3 percent from 2.5 percent; miscellaneous items, 0.1 percent from 0.7 percent; and FLW items, zero growth from 1.2 percent.
Prices in AONCR moved up by 0.5 percent in July, slower than the 0.7 percent posted in June. The rate of FBT slid to 0.4 percent from 0.8 percent; clothing, 0.2 percent from 0.3 percent; services, 0.2 percent from 1.9 percent; and miscellaneous items, 0.1 percent from 0.2 percent. On the contrary, H&R and FLW accelerated to 1.1 percent and 0.1 percent respectively from their corresponding June rates of 0.2 percent and -1.0 percent. The lowest month-on-month rate was still noticed in Eastern Visayas at -0.1 percent while CAR recorded the highest rate at 1.7 percent.
> By Commodity Group, Month-on-Month
A 0.1 percent drop in the prices of FBT items pulled down the month-on-month inflation rate to 0.1 percent in July from 0.9 percent in June. Except for H&R and FLW items whose respective prices moved up to 0.7 percent and 0.1 percent from their corresponding last month's rate of 0.2 percent and -0.2 percent, all the other commodity groups moved at slower rates. Prices of clothing items fell to 0.2 percent from 0.6 percent; services items, 0.3 percent from 2.1 percent and miscellaneous items, 0.1 percent from 0.3 percent.
Abundant supply of vegetables reaching various markets in NCR amply met consumer's demand during the month. Lower prices of fruits were also noted. All these factors accounted for the significant decline of the fruits and vegetables index in the area by -11.8 percent in July from 8.6 percent in June. Sufficient supply of fruits and vegetables also observed in many regions caused the group's index in AONCR to slow down by 2.7 percentage points to 1.8 percent in July from 4.5 percent in June despite of the heavy rains and floods experienced in many provinces caused by super typhoon Harurot during the third week of the month. Thus, the national index fell to -1.7 percent from 5.5 percent.
The good weather condition that generally prevailed during the month brought abundant supply of fish in the markets. Thus, prices of fish in the Philippines and AONCR decreased to -1.1 percent from their respective last month's rates of 1.3 percent and 1.0 percent and in NCR, -1.6 percent from 2.7 percent.
The volume of rice displayed and traded in all NCR markets was sufficient despite the start of the land preparation in palay growing provinces. This pulled down the index of rice in the area by 0.1 percent in July from a 0.1 percent uptick last month. However, the price of rice in AONCR was up by 0.8 percent from 0.3 percent as eight regions posted higher rates. Overall, the price of rice picked up by 0.6 percent from 0.3 percent.
Higher cost of production for milk and milk products which started in January 2003 continued to raise the prices of dairy products in the Philippines and NCR by 1.6 percent and 2.2 percent, respectively from 0.1 percent and in AONCR, 1.3 percent from 0.2 percent.
Higher rental rates observed in many regions including the NCR primarily pushed up the H&R index in the Philippines by 0.7 percent; NCR, 0.2 percent; and AONCR, 1.1 percent. Add-ons in the prices of selected construction materials such as cement, lumber, sand and nails also contributed to the uptrend.
Upward adjustments in the prices of selected school supplies, medicines, medical and health goods were still noticed during the month. Higher charges for medical, dental, selected personal and recreational services in many regions including the NCR along with increment in the salary of household help in selected provinces were also observed. All these factors added up to the 0.3 percent increase in the services indices in the Philippines and NCR and 0.2 percent in AONCR. These were however, slower than their corresponding June rates of 2.1 percent, 2.5 percent and 1.9 percent.
Increments in the prices of many household operation items and personal care products in selected regions pushed up the miscellaneous index in the three areas by 0.1 percent.
