• Headline inflation rate in the Philippines was registered at 7.6 percent in March, the same rate posted in February. Inflation a year ago was 8.5 percent.

• Excluding selected food and energy items, core inflation went up to 6.5 percent in March from 6.3 percent in February.

  • On the other hand, inflation rate in the National Capital Region (NCR) gained 0.2 percentage point to 8.7 percent in March from 8.5 percent in February due to the acceleration in the inflation rates recorded in clothing, fuel, light and water (FLW) and miscellaneous items.

  • Inflation in Areas Outside the National Capital Region (AONCR) increased to 7.2 percent in March from 7.1 percent in February as inflation for housing and repairs (H&R) and miscellaneous items were higher during the month in review.

• The month-on-month inflation went up at a slower rate of 0.4 percent in March from 1.0 percent in February as the increments in the prices of all the commodity groups except for H&R items slowed down.

CONSUMER PRICE INDEX
(2000=100)
MARCH 2006

l By Region, Year-on-Year

• The inflation rate in NCR rose by 0.2 percentage point to 8.7 percent in March from 8.5 percent in February.

• Inflation in AONCR moved up to 7.2 percent in March from 7.1 percent in February. Eight regions recorded higher annual inflation rates with MIMAROPA registering the biggest increase of 0.5 percentage point (7.8% from 7.3%). The highest inflation was still posted in ARMM at 10.8 percent while the lowest rate was still noted in Western Visayas at 5.8 percent.

l By Commodity Group, Year-on-Year

• The annual rates of price increments in FBT and clothing correspondingly remained at 6.4 percent and 3.2 percent in March. Meanwhile, higher annual inflation rate was observed in H&R at 4.5 percent in March from 4.2 percent in February; FLW, 18.5 percent from 17.2 percent; and miscellaneous items, 3.4 percent from 3.2 percent. The annual rate of price adjustment was however slower in services at 11.2 percent from 11.7 percent.

• The national inflation rate for food alone picked up to 6.5 percent in March from 6.4 percent in February.

• On an annual basis, higher inflation were noticed in the prices of corn at 3.0 percent in March from 2.1 percent in February; cereal preparations, 6.7 percent from 6.5 percent; eggs, 6.0 percent from 5.3 percent; fruits and vegetables, 9.3 percent from 8.0 percent; and miscellaneous foods, 9.0 percent from 8.7 percent. Meanwhile, the annual rates of price additions in rice decelerated to 7.1 percent from 7.7 percent; dairy products, 6.3 percent from 6.4 percent; fish, 4.6 percent from 5.0 percent; and meat, 2.8 percent from 3.4 percent.

• In NCR, inflation for clothing advanced to 2.4 percent in March from 2.0 percent in February; FLW, 20.3 percent from 15.6 percent; and miscellaneous items, 3.4 percent from 2.9 percent. On the other hand, inflation rate for FBT slowed to 5.7 percent from 6.2 percent; H&R, 6.1 percent from 6.2 percent; and services, 13.6 percent from 14.4 percent.

• Inflation for food alone in NCR eased to 5.8 percent in March from 6.3 percent in February.

• Compared with March 2005, the price of fish dropped by -1.3 percent from 1.8 percent in February. In addition, slower annual price increments were noted in rice at 4.4 percent in March from 5.5 percent in February; dairy products, 6.9 percent from 7.0 percent; and meat, 2.6 percent from 3.3 percent. On the contrary, higher annual rates of price hikes were posted in cereal preparations and eggs at 7.5 percent from their corresponding previous month’s rates of 6.8 percent and 5.3 percent and miscellaneous foods, 10.0 percent from 9.7 percent. Annual price movements in corn and fruits and vegetables remained at 3.5 percent and 8.2 percent, respectively.

• In AONCR, annual rates of price increases were higher in H&R and miscellaneous items at 3.4 percent in March from 2.6 percent and 3.3 percent respectively in February. Inflation for clothing however decelerated to 3.5 percent from 3.6 percent; FLW, 17.6 percent from 18.1 percent; and services, 9.8 percent from 10.2 percent. Annual price hike in FBT at 6.6 percent was the same rate registered last month.

• Inflation for food alone in AONCR moved upward to 6.7 percent in March from 6.6 percent in February.

• Annual upward adjustment in the price of corn was 3.0 percent in March from 2.0 percent in February; cereal preparations, 6.5 percent from 6.4 percent; eggs, 5.4 percent from 5.3 percent; fish, 6.0 percent from 5.8 percent; fruits and vegetables, 9.7 percent from 7.9 percent; and miscellaneous foods, 8.7 percent from 8.3 percent. Meanwhile, slower annual growths were correspondingly seen in the prices of dairy products and meat at 6.0 percent and 2.9 percent from 6.2 percent and 3.4 percent, respectively.

• The annual rate of price increment in rice eased to 7.5 percent in March from 8.0 percent in February as eleven regions posted slower annual growth rates. The biggest decline of 1.8 percentage points (8.5 percent from 10.3 percent) was recorded in Eastern Visayas.

l By Region, Month-on-Month

• Prices in NCR climbed by 0.2 percent in March, slower than the 1.2 percent growth in February. This was mainly effected by the 0.3 percent drop in the prices of the heavily weighted FBT items from 1.0 percent. Prices of H&R items also moved up slower at 0.6 percent from 1.0 percent; FLW items, 0.7 percent from 3.5 percent; and services items, 0.4 percent from 0.9 percent. Upward price movements in clothing and miscellaneous items remained at 0.6 percent and 0.5 percent, respectively.

• Likewise, prices in AONCR increased at a slower rate of 0.4 percent in March from 1.0 percent in February. Additions in the prices of all the commodity groups slowed down except for H&R items whose prices increased to 1.1 percent from 0.5 percent. Movements in the prices of FBT and miscellaneous items improved to 0.3 percent from their respective last month’s rates of 1.0 percent and 0.4 percent; clothing, FLW and services items, 0.2 percent from 0.3 percent, 2.6 percent and 1.0 percent. The lowest month-on-month inflation at zero growth was noted in CAR while the highest rate was still in ARMM at 0.9 percent.

l By Commodity Group, Month-on-Month

• The month-on-month inflation rate at the national level eased to 0.4 percent in March from 1.0 percent in February. Slower price increases were posted in all the commodity groups except for H&R items. Upward price adjustments in FBT and clothing items decelerated to 0.2 percent from their respective February rates of 1.0 percent and 0.4 percent; FLW items, 0.4 percent from 2.9 percent; services and miscellaneous items, 0.3 percent from 1.0 percent and 0.4 percent. Prices of H&R items were higher at 0.8 percent from 0.7 percent.

   

  • Higher price quotations in sugar were still registered in many regions including NCR. Price hikes in selected spices and seasonings, powdered tonic drink, coffee, cooking oil and meals eaten outside the home in selected regions were also observed during the month. All these factors contributed to the 0.7 percent growth in the miscellaneous foods index in the Philippines, 0.2 percent in NCR and 0.9 percent in AONCR. These were however slower than their corresponding February growth rates of 2.3 percent, 2.9 percent and 2.2 percent.

  • Add-ons in the prices of milk and milk products caused the dairy products index in the Philippines to move up by 1.1 percent; NCR, 1.5 percent and in AONCR, 0.9 percent.

  • A 0.7 percent increment in the index for cereal preparations in the Philippines, 1.1 percent in NCR and 0.6 percent in AONCR was attributed to the upward adjustments in the prices of native cakes, flour and flour products during the month.

  • The price of rice in NCR generally remained stable as it posted a zero growth in March from 0.6 percent in February. Likewise, the price increase of rice in AONCR and at the national level slowed down to 0.2 percent from 0.7 percent respectively as six regions recorded negative rates.

  • The price of corn in the Philippines and AONCR correspondingly recorded slower positive rates of 1.9 percent and 2.0 percent in March from 4.0 percent in February. The price of corn in NCR however registered a zero growth during the month from its previous month’s growth rate of 0.5 percent.

  • The relatively ample supply of tropical fruits in season such as mango, pineapple and papaya resulted to reductions in their prices. Moreover, prices of vegetables also declined during the month due to sufficient supply in the markets brought about by favorable weather condition. Thus, the index for fruits and vegetables in the Philippines dropped by -1.1 percent from zero growth; NCR, -2.7 percent from 0.9 percent; and AONCR, -0.6 percent from -0.2 percent.

  • The good catch of fishermen due to the favorable weather conditions experienced during the month provided sufficient supply of fish in the markets. This further brought down their prices by -2.7 percent in NCR and in the Philippines by -0.3 percent. Similarly, the additions in the prices of fish in AONCR slowed to 0.2 percent from 1.1 percent.

  • Upward adjustments in the prices of selected construction materials triggered the 0.8 percent uptick in the H&R index in the Philippines, 0.6 percent in NCR and 1.1 percent in AONCR.

   

• The services index in the Philippines and AONCR correspondingly grew by 0.3 percent and 0.2 percent brought about by the continued price increases of medicines and higher charges for selected medical, dental and personal services in many regions. Likewise, the group’s index in NCR also moved up by 0.4 percent as prices of medicines and some school supplies and textbooks were up during the month.

• Higher electricity rates posted in many regions including NCR effected the 0.4 percent add-on in the FLW index for the Philippines; 0.7 percent in NCR; and 0.2 percent in AONCR.

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).