JANUARY 2007 AND DECEMBER 2006
Year-on-Year Inflation Rates, All Items | |||
| January | December | Year-to-date | |
| Philippines | |||
| Headline | 3.9 | 4.3 | 3.9 |
| Core | 3.9 | 4.6 | 3.9 |
| NCR | |||
| Headline | 4.0 | 4.9 | 4.0 |
| AONCR | |||
| Headline | 3.7 | 4.1 | 3.7 |
The year 2007 started with a slower national annual headline inflation rate of 3.9 percent in January from 4.3 percent in December due to the slower movements in the rates of all the commodity groups except for clothing. This was the lowest inflation rate since October 2003 (3.6%). Inflation a year ago was 6.7 percent.
Excluding selected food and energy items, core inflation was also registered at 3.9 percent in January, lower than the 4.6 percent growth in December.
Annual inflation rate in the National Capital Region (NCR) also slowed down to 4.0 percent in January from 4.9 percent in December as the annual price adjustments of the commodity groups except for clothing decelerated during the month.
Inflation rate in Areas Outside the National Capital Region (AONCR) further eased to 3.7 percent in January from 4.1 percent in December. This was brought about by the downward trend still observed in the annual rates of all the commodity groups except for clothing and H&R.
Month-on-Month Inflation Rates, All Items | ||
| January | December | |
| Philippines | 0.3 | 0.1 |
| NCR | 0.2 | 0.1 |
| AONCR | 0.3 | 0.0 |
As price gains in the heavily weighted food items were recorded, consumer prices generally went up by 0.3 percent in January from 0.1 percent in December. Higher prices of LPG, selected construction materials and increased rental rates in some regions including NCR were also noted during the month. Similarly, water rates advanced in NCR.
CONSUMER PRICE INDEX
(2000=100)
JANUARY 2007
l By Region, Year-on-Year
The annual inflation rate in NCR moved at slower pace of 4.0 percent in January from 4.9 percent in December.
Likewise, annual inflation rate in AONCR further decelerated to 3.7 percent in January from 4.1 percent in December. All the regions except for CAR , Ilocos and Bicol posted lower annual inflation rates with the biggest slowdown of 0.9 percentage point (3.0% from 3.9%) seen in Caraga. The lowest rate was still observed in CAR at 2.5 percent while the highest rate remained in ARMM at 5.8 percent.
l By Commodity Group, Year-on-Year
Except for clothing whose rate remained at 3.0 percent, all the other commodity groups continued to move at slower rates. The annual inflation rate for food, beverages and tobacco (FBT) slid to 4.3 percent in January from 4.7 percent in December; H&R, 2.9 percent from 3.7 percent; FLW, 4.7 percent from 5.4 percent; services, 3.7 percent from 4.4 percent; and miscellaneous items, 2.4 percent from 2.5 percent.
The inflation rate for food alone at the national level further moved down to 4.2 percent in January from 4.6 percent in December.
Compared to their corresponding rates in December, annual price increments in January were slower in all the food groups except for rice whose annual inflation rate was higher at 1.8 percent from 1.4 percent. On an annual basis, the price increase in corn slipped to 9.5 percent in January from 9.7 percent in December; cereal preparations, 4.7 percent from 5.0 percent; dairy products, 5.0 percent from 5.1 percent; eggs, 5.7 percent from 5.9 percent; fish, 3.5 percent from 5.0 percent; fruits and vegetables, 6.3 percent from 7.3 percent; meat, 3.1 percent from 3.5 percent; and miscellaneous foods, 5.5 percent from 5.7 percent.
In NCR, inflation rates for all the commodity groups in January further slackened compared to their December growth rates except for clothing index whose annual rate was higher at 4.0 percent from 3.9 percent. Inflation for FBT slowed down at 4.9 percent in January from 5.1 percent in December; H&R, 2.5 percent from 4.3 percent; FLW, 5.5 percent from 5.6 percent; services, 3.9 percent from 5.4 percent; and miscellaneous items, 2.3 percent from 2.6 percent.
The inflation rate for food alone in NCR continued to move at a slower rate of 5.0 percent in January from 5.2 percent in December.
A negative annual rate was recorded in the index of fish at -0.7 percent in January from 1.7 percent in December. Moreover, lower annual price increases were observed in cereal preparations at 5.9 percent from 6.0 percent; dairy products, 6.5 percent from 6.6 percent; eggs, 9.0 percent from 10.0 percent; meat, 4.6 percent from 5.5 percent; and miscellaneous foods, 6.6 percent from 6.7 percent. Meanwhile, annual price hikes in rice and fruits and vegetables were correspondingly higher at 1.2 percent and 7.7 percent from 0.6 percent and 5.8 percent, respectively. The annual price gain in corn remained at 0.5 percent.
In AONCR, inflation rate for FBT was slower at 4.0 percent in January from 4.5 percent in December; FLW, 4.1 percent from 5.2 percent; services, 3.6 percent from 3.8 percent; and miscellaneous items, 2.4 percent from 2.5 percent. Annual inflation for clothing and H&R were still at their corresponding last month’s rates of 2.6 percent and 3.1 percent.
Inflation for food alone in AONCR further improved to 4.0 percent in January from 4.5 percent in December.
A slowdown was noticed in the annual price increase of corn at 9.7 percent in January from 9.8 percent in December; cereal preparations and dairy products, 4.3 percent from 4.5 percent; fish, 4.6 percent from 5.7 percent; fruits and vegetables, 5.8 percent from 7.8 percent; meat, 2.4 percent from 2.7 percent; and miscellaneous foods, 5.0 percent from 5.3 percent. The annual growth rate on eggs remained at 4.7 percent.
A higher annual price addition was however noted in rice at 1.8 percent from 1.6 percent as nine regions posted faster annual inflation rates. The biggest jump of 1.1 percentage points was seen in Ilocos (0.1% from -1.0%) and Davao (1.7% from 0.6%).
l By Region, Month-on-Month
Prices in NCR moved upward to 0.2 percent in January compared from 0.1 percent growth in December mainly due to the 0.9 percent upward price adjustment in FLW items from zero growth. Moreover, prices of H&R and services items correspondingly climbed by 0.2 percent and 0.1 percent from their respective last month’s rates of 0.1 percent and -0.5 percent. Meanwhile, price increases were slower in FBT items at 0.1 percent from 0.4 percent; clothing items, 0.4 percent from 0.5 percent; and miscellaneous items, 0.2 percent from 0.3 percent.
On a monthly basis, prices in AONCR picked up to 0.3 percent in January from zero growth in December as prices of the heavily weighted FBT items gained 0.5 percent from -0.1 percent. In addition, prices of FLW and miscellaneous items correspondingly advanced to 0.7 percent and 0.2 percent from -0.2 percent and 0.1 percent, respectively. Price uptick in clothing and H&R items correspondingly remained at their last month’s growth rates of 0.2 percent and 0.1 percent. Prices of services items were generally stable as it still posted zero growth rate.
The highest month-on-month inflation rate at 0.8 percent was recorded in Bicol while the lowest rate was in CAR at zero growth.
l By Commodity Group, Month-on-Month
At the national level, the year started off with a higher month-on-month inflation rate at 0.3 percent in January from 0.1 percent in December. Prices of FBT and H&R items correspondingly rose to 0.4 percent and 0.2 percent from 0.1 percent and FLW items, 0.7 percent from -0.1 percent. Miscellaneous items retained its last month’s price increase of 0.2 percent. On the other hand, price increments were slower in clothing items at 0.2 percent from 0.3 percent while those of services items remained stable as the group’s index recorded a zero growth from -0.2 percent.
Various fish species were priced higher this month as the cold weather condition generally affected the volume of catch. The bigger demand for fish products as consumer’s preference shifted from meat to fish after the holiday season also pushed up prices of fish during the month. Thus, the price increase in the group’s index in the three areas was pegged at 1.1 percent.
Prices of eggs went up to 0.7 percent from 0.3 percent due to the prevalent cold weather that affected the production of eggs.
Fruits and vegetables in nine regions particularly in Bicol (4.7%) were up causing the index in AONCR and in the Philippines to grow by 0.7 percent and 0.5 percent from their respective last month’s rates of -1.3 percent and -1.5 percent. On the other hand, the index of fruits and vegetables in NCR continued to decline at a rate of -0.2 percent as supply was sufficient due to the favorable weather conditions and good harvests. Negative rates were also noted in CAR, Central Luzon, MIMAROPA, Northern Mindanao, Caraga and ARMM.
The price of rice in the Philippines and AONCR went up to 0.4 percent from -0.1 percent as many regions registered higher monthly price increments. Likewise, prices of rice in NCR grew by 0.2 percent from -0.1 percent.
Increments in the prices of chicken, beef, and pork in many regions raised the group’s index by 0.5 percent in AONCR. However, sufficient supply of chicken and pork in NCR markets resulted to a 0.4 percent drop in the meat’s index in the area. Thus, the national index for meat inched up by 0.3 percent.
The index of cereal preparations registered a 0.2 percent increase as higher prices of bread, biscuits, flour and some noodles were observed.
Upward adjustment in the price of LPG primarily pushed up the FLW index in the Philippines and AONCR by 0.7 percent. While the price of LPG was also on the uptrend in NCR, the jump in water rates in the area mainly raised the FLW index by 0.9 percent from a zero growth. Increased prices of kerosene, firewood and charcoal in selected regions in AONCR also contributed to the acceleration.
Additions in the prices of some construction materials and higher rental rates in selected regions including NCR were noted during the month. The H&R index gained by 0.2 percent in the Philippines and NCR and 0.1 percent in AONCR.
Movement in the miscellaneous items index in the three areas was pegged at 0.2 percent due to the increments in the prices of selected items for personal care and effects, household operations, furnishings and equipment.
NOTE: CPIs and inflation rates by province and selected city are also available upon request at NSO, Industry and Trade Statistics Department, Economic Indices and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47, email address: r.staana@census.gov.ph).
| (Sgd.) CARMELITA N. ERICTA Administrator |
Source: National Statistics Office
Manila, Philippines
Page last updated: February 6, 2007
