JULY AND JUNE 2010
| Year-on-Year Inflation Rates, All Items | |||
| July | June | Year-to-date | |
| Philippines | |||
| Headline | 3.9 | 3.9 | 4.2 |
| Core | 3.9 | 3.8r | 3.7 |
| NCR | |||
| Headline | 4.1 | 4.1 | 4.4 |
| AONCR | |||
| Headline | 3.8 | 3.9r | 4.1 |
The annual headline inflation rate of the country in July remained at its June figure of 3.9 percent. Higher annual growth rates posted in food, beverages and tobacco (FBT), housing and repairs (H&R) and services were offsetted by the slower increments in fuel, light and water (FLW) and miscellaneous items. Inflation a year ago was 0.2 percent.
Excluding selected food and energy items, core inflation picked up to 3.9 percent in July from 3.8 percent in June.
Annual inflation rate in the National Capital Region (NCR) was registered at 4.1 percent in July, the same rate in June. Annual price increases in clothing, H&R and miscellaneous items index remained at their respective last month’s rates.
Annual inflation in Areas Outside the National Capital Region (AONCR) at 3.8 percent in July was however slower than its June rate 3.9 percent. This can be attributed to the deceleration in the annual price increments recorded in clothing and FLW index. 
| Year-on-Year Inflation Rates in the Philippines, All Items January 2005 - July 2010 | ||||||
| Month | Year | |||||
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
| January | 8.4 | 6.7 | 3.9 | 4.9 | 7.1 | 4.3 |
|---|---|---|---|---|---|---|
| February | 8.5 | 7.6 | 2.6 | 5.4 | 7.3 | 4.2 |
| March | 8.5 | 7.6 | 2.2 | 6.4 | 6.4 | 4.4 |
| April | 8.5 | 7.1 | 2.3 | 8.3 | 4.8 | 4.4 |
| May | 8.5 | 6.9 | 2.4 | 9.5 | 3.3 | 4.3 |
| June | 7.6 | 6.7 | 2.3 | 11.4 | 1.5 | 3.9 |
| July | 7.1 | 6.4 | 2.6 | 12.3 | 0.2 | 3.9 |
| August | 7.2 | 6.3 | 2.4 | 12.4 | 0.1 | |
| September | 7.0 | 5.7 | 2.7 | 11.8 | 0.6r | |
| October | 7.0 | 5.4 | 2.7 | 11.2 | 1.6 | |
| November | 7.1 | 4.6 | 3.2 | 9.9 | 2.8 | |
| December | 6.7 | 4.3 | 3.9 | 8.0 | 4.3r | |
| Average | 7.6 | 6.2 | 2.8 | 9.3 | 3.2 | |
| Month-on-Month Inflation Rates, All Items | ||
| July | June | |
| Philippines | 0.2 | 0.2 |
| NCR | 0.1 | 0.2 |
| AONCR | 0.3 | 0.2 |
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Consumer prices generally moved up at 0.2 percent. This was due to upward price adjustments in food items such as rice, eggs, flour and flour products, fruits, vegetables and sugar in selected regions. Higher electricity rates and movie admission fees in NCR and uptick in the prices of gasoline and diesel and school supplies in many regions were also noted during the month.
CONSUMER PRICE INDEX
(2000=100)
JULY 2010
By Region, Year-on-Year
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The annual inflation rate in NCR remained at 4.1 percent in July.
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On the other hand, annual inflation rate in AONCR eased to 3.8 percent in July from 3.9 percent in June. Nine regions recorded slower annual inflation rates with the biggest decline of 0.5 percentage point seen in Davao (4.2% from 4.7%). The lowest rate was registered in Western Visayas and Eastern Visayas at 2.7 percent while the highest rate at 5.5 percent was still posted in ARMM.
By Commodity Group, Year-on-Year
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The country’s annual price hike in FBT index was higher at 3.2 percent in July from 3.1 percent in June; H&R, 1.7 percent from 1.6 percent; and services, 4.0 percent from 3.9 percent. Slower annual price add-ons were however posted in FLW and miscellaneous items index at 14.4 percent and 1.2 percent, respectively from their corresponding previous month’s rates of 16.4 percent and 1.3 percent. The annual price increase in the clothing index remained at 1.9 percent.
On an annual basis, the price change for food alone at the national level went up to 3.3 percent in July from 3.2 percent in June.
Higher annual price movements were correspondingly noticed in rice and miscellaneous foods index at 0.3 percent and 6.7 percent in July from their respective June rates of zero growth and 6.1 percent. On the other hand, the annual price gain in cereal preparations index decelerated to 3.3 percent from 3.4 percent; fish, 2.8 percent from 3.3 percent; and meat, 4.4 percent from 5.4 percent. The annual price adjustments in the dairy products, eggs and fruits and vegetables index remained at their June rates of 1.5 percent, 2.3 percent and 2.9 percent, respectively while that for the corn index decreased to -0.6 percent.
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In NCR, the annual price increase in the services index was higher at 4.8 percent in July from 4.4 percent in June. On the contrary, annual price additions were slower in FBT and FLW index at 2.0 percent and 19.7 percent, respectively from their corresponding last month’s rates of 2.2 percent and 20.2 percent. The annual price movement in clothing, H&R and miscellaneous items index remained at their last month’s rate of 1.4 percent, 1.5 percent and 0.8 percent, respectively.
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The annual inflation for food alone in NCR improved to 2.1 percent in July from 2.3 percent in June.
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The annual inflation in the index of corn slowed to 13.0 percent in July from 17.2 percent in June; fish, 0.1 percent from 1.5 percent; and meat, 2.4 percent from 4.4 percent. The annual price gain in the index of cereal preparations was however higher at 2.2 percent from 1.8 percent; fruits and vegetables, 1.8 percent from 1.1 percent; and miscellaneous foods, 3.8 percent from 2.9 percent. The corresponding annual price movements in dairy products and eggs index remained at 1.4 percent and 0.7 percent while zero growth was posted in the rice index from -0.3 percent.
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In AONCR, slower annual price gains were correspondingly recorded in clothing and FLW index at 2.1 percent and 11.6 percent in July from their respective June rates of 2.2 percent and 14.4 percent. On the other hand, annual inflation was higher in FBT index at 3.5 percent from 3.4 percent; H&R, 1.9 percent from 1.7 percent; and services, 3.7 percent from 3.6 percent while that for miscellaneous items index remained at 1.5 percent.
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The annual price movement for food alone in AONCR further climbed to 3.6 percent in July from 3.5 percent in June.
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The annual price change in rice index picked up to 0.4 percent in July from zero growth in June as twelve regions posted faster annual growth rates. The biggest jump of 1.8 percentage points was registered in MIMAROPA (2.5% from 0.7%). The highest annual rate was in ARMM at 2.9 percent while the lowest rate of -2.1 percent was seen in Northern Mindanao and Davao.
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The annual price increment in miscellaneous foods index was higher at 7.9 percent from 7.5 percent. Annual inflation in the cereal preparations index was however slower at 3.7 percent from 4.0 percent; eggs, 2.7 percent from 2.8 percent; fish, 3.4 percent from 3.6 percent; fruits and vegetables, 3.2 percent from 3.4 percent; and meat, 5.2 percent from 5.8 percent. In addition, the annual price movement in corn index was still negative at -0.8 percent from -3.2 percent.
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By Region, Month-on-Month
Prices in NCR generally increased to 0.1 percent in July, slower than the 0.2 percent growth posted in June. The price adjustment in the heavily weighted FBT index was negative at -0.3 percent from 0.5 percent. Higher price add-ons were however correspondingly noticed in clothing index at 0.1 percent from zero growth; FLW, 1.1 percent from -0.8 percent; and services, 0.4 percent from 0.3 percent. Prices of H&R and miscellaneous items generally remained stable as their index have a zero growth from 0.2 percent and 0.1 percent, respectively.
Prices in AONCR grew to 0.3 percent in July from 0.2 percent in June. Price mark-ups in the H&R and services index were correspondingly higher at 0.3 percent and 0.5 percent from 0.1 percent and 0.4 percent, respectively. Price increment in FBT index remained at 0.3 percent and clothing and miscellaneous items, 0.1 percent. The FLW index still posted a negative rate of -0.3 percent.
Higher month-on-month inflation rates in July were registered in eight regions with CALABARZON and Northern Mindanao posting the highest rate of 0.5 percent. On the other hand, the lowest rate was noted Davao at -0.3 percent.
Among the three big areas in the country, price increases were generally higher in Luzon compared to Visayas and Mindanao.
By Commodity Group, Month-on-Month
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In general, consumer prices rose by 0.2 percent in July, the same rate in June. Price gains in H&R and FLW index were correspondingly higher at 0.2 percent and 0.3 percent in July from their respective June rates of 0.1 percent and -0.5 percent. Price increase in FBT index was however slower at 0.2 percent from 0.4 percent while that for clothing and services index remained at their respective June rates of 0.1 percent and 0.4 percent. Prices of miscellaneous items generally remained stable as its group’s index had posted a zero growth from 0.1 percent.
Sizeable volume of different fish species in the markets were generally observed during the month. This pulled down the fish index in the Philippines by -0.6 percent; NCR, -1.4 percent; and AONCR, -0.5 percent.
Enough supply and lower consumer demand for chicken resulted to its price cuts. Hence, the meat index in the Philippines and NCR dropped by -0.4 percent and -1.6 percent, respectively. Lower prices of pork and beef in the NCR markets also contributed to the downtrend. Meanwhile, higher prices of pork and beef in some regions slightly pushed up the meat index in AONCR by 0.1 percent.
Prices of corn in many regions decreased during the month. Thus, the index of corn in the Philippines and AONCR declined by -0.3 percent from 0.2 percent. On the other hand, prices of corn in NCR generally remained stable.
The upsurge in the prices of sugar in all the regions including NCR mainly raised the miscellaneous foods index in the three areas by 0.9 percent. Higher prices of salt and meals eaten outside the home in some regions including NCR also contributed to the uptrend.
The heavy volume of deliveries of most temperate or upland vegetables in the NCR markets particularly in the early part of the month generally pulled down the index of fruits and vegetables in the area by -1.1 percent. Meanwhile, the index for fruits and vegetables in AONCR went up by 0.9 percent during the month as prices of vegetables were priced higher in those areas affected by typhoon “Basyang”. Price increments of selected fruits were also noted is some regions. The national index also went up to 0.5 percent, slower than the 1.9 percent increase in June.
Upward adjustments in the prices of rice caused a 0.2 percent uptick in the group’s index in the three areas.
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The general upward adjustments in the prices of gasoline and diesel raised the services index in the Philippines and AONCR by 0.4 percent and 0.5 percent, respectively. Meanwhile, higher charges for selected medical and personal services items in NCR effected a 0.4 percent growth in its group’s index.
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The FLW index in the Philippines and NCR correspondingly inched up by 0.3 percent and 1.1 percent due to the increased electricity rates in NCR. Meanwhile, the FLW index in AONCR went down by -0.3 percent as prices of LPG in all the regions declined during the month.
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Increments in the prices of selected construction materials and higher rental rates in some regions resulted to a 0.2 percent gain in the H&R index in the Philippines and 0.3 percent in AONCR. The group’s index in NCR however posted a zero growth during the month.
NOTES:
Revisions in the inflation rates in AONCR were due to the updated electricity and water rates in selected provinces.
The second phase survey report from Tawi-Tawi was not received as of August 5, 2010.
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).
Source: National Statistics Office
Manila, Philippines
Page last updated: August 5, 2010
