· The annual headline inflation rate at the national level jumped to 6.4 percent in March from 5.4 percent in February. This was primarily due to the 8.2 percent hike in the annual rate of the heavily weighted food, beverages and tobacco (FBT) items from 6.8 percent. Higher annual rates in all the other commodity groups also contributed to the uptrend. Inflation a year ago was 2.2 percent.

· Similarly, higher annual price increases in all the commodity groups caused the annual inflation rate in the National Capital Region (NCR) to gain by 1.3 percentage points, to 5.4 percent in March from 4.1 percent in February.

· The year-on-year inflation rate in Areas Outside the National Capital Region (AONCR) also picked up to 6.8 percent in March from 6.0 percent in February brought about by higher annual price adjustments in all the commodity groups.

• Excluding selected food and energy items, core inflation went up to 4.8 percent in March from 4.0 percent in February.

• Upward movements in the prices of the heavily weighted food items such as rice, flour and flour products, pork, cooking oil, selected spices and seasonings, milk and milk products resulted to a 0.9 percent growth in the overall month-on-month inflation rate. Higher electricity rates and the series of price hikes in gasoline and diesel also contributed to the increasing trend.

CONSUMER PRICE INDEX
(2000=100)
MARCH 2008

By Region, Year-on-Year

• The annual inflation rate in NCR went up to 5.4 percent in March from 4.1 percent in February.
• Likewise, inflation in AONCR increased to 6.8 percent in March from 6.0 percent in February as all the regions continued to post higher annual inflation rates except for Zamboanga Peninsula and ARMM. The biggest acceleration of 1.9 percentage points (6.6% from 4.7%) was registered in Cagayan Valley with the highest inflation rate posted in Caraga at 8.7 percent. The lowest rate during the month was noted in Ilocos at 5.3 percent.

By Commodity Group, Year-on-Year

• All the commodity groups at the national level still recorded higher annual rates compared to February figures. Inflation for FBT advanced to 8.2 percent in March from 6.8 percent in February; clothing, 3.6 percent from 3.4 percent; housing and repairs (H&R), 3.1 percent from 2.8 percent; fuel, light and water (FLW), 6.2 percent from 4.6 percent; services, 6.4 percent from 5.9 percent; and miscellaneous items, 2.4 percent from 2.1 percent.
• The annual inflation rate for food alone in the Philippines grew to 8.4 percent in March from 7.0 percent in February
• On an annual basis, price increases were higher in rice at 10.9 percent in March from 7.7 percent in February; corn, 8.4 percent from 5.2 percent; cereal preparations, 11.3 percent from 9.0 percent; dairy products, 12.4 percent from 11.8 percent; fish, 8.5 percent from 7.9 percent; meat, 7.0 percent from 4.4 percent; and miscellaneous foods, 4.9 percent from 4.1 percent. Meanwhile, annual price adjustments in eggs and fruits and vegetables were correspondingly slower at 8.1 percent and 10.2 percent from 8.3 percent and 11.1 percent, respectively.
• In NCR, higher annual price hikes were posted in all the commodity groups. Compared to a year ago, FBT prices climbed to 8.4 percent in March from 5.9 percent in February; clothing, 5.0 percent from 4.8 percent; H&R, 1.1 percent from 0.9 percent; FLW, 1.4 percent from -0.6 percent; services, 7.9 percent from 7.1 percent; and miscellaneous items, 1.1 percent from 0.9 percent.
  • Inflation rate for food alone in NCR accelerated to 8.6 percent in March from 6.1 percent in February.
  • Annual gains in the price of rice was recorded at 19.6 percent in March from 10.6 percent in February; cereal preparations, 12.1 percent from 8.5 percent; dairy products, 10.7 percent from 10.0 percent; fish, 9.5 percent from 6.6 percent; meat, 9.1 percent from 5.2 percent; and miscellaneous foods, 4.4 percent from 2.8 percent. On the contrary, eggs and fruits and vegetables continued to register slower annual price additions at 6.0 percent and 5.0 percent, respectively from their corresponding last month’s rates of 6.2 percent and 8.3 percent. Inflation for corn remained at 17.5 percent for three consecutive months.
• In AONCR, all the commodity groups recorded increasing annual price changes in March. The annual price movement in FBT items was posted at 8.1 percent in March from 7.1 percent in February; clothing, 3.0 percent from 2.9 percent; H&R, 4.9 percent from 4.3 percent; FLW, 8.9 percent from 7.4 percent; services, 5.5 percent from 5.2 percent; and miscellaneous, 2.8 percent from 2.5 percent.
  • Prices of food alone rose to 8.4 percent in March from 7.3 percent in February.
  • Annual inflation in rice rose to 9.6 percent in March from 7.3 percent in February. All the regions registered higher annual rates except for Zamboanga Peninsula, SOCCSKSARGEN and ARMM, The biggest uptick of 9.3 percentage points (18.5% from 9.2%) was observed in Bicol followed by Central Visayas at 5.8 percentage points (7.1% from 1.3%).
  • Measured from a year ago, prices moved higher in corn at 8.3 percent in March from 5.1 percent in February; cereal preparations, 11.1 percent from 9.2 percent; dairy products, 13.1 percent from 12.5 percent; fish, 8.2 percent from 8.1 percent; meat, 6.2 percent from 4.1 percent; and miscellaneous foods, 5.1 percent from 4.8 percent. Meanwhile, annual rates of price additions in eggs and fruits and vegetables correspondingly decelerated to 8.7 percent and 11.7 percent from 8.9 percent and 11.9 percent, respectively.

By Region, Month-on-Month

• Consumer prices in NCR picked up to 1.2 percent in March from -0.3 percent in February mainly brought about by the 2.0 percent price hike in FBT items from -0.4 percent. Moreover, prices of FLW and services items also moved upward to 2.1 percent and 0.8 percent, respectively from their corresponding last month’s rates of -1.6 percent and -0.3 percent. On the other hand, price gains in clothing and H&R items correspondingly eased to 0.4 percent and 0.1 percent from 2.6 percent and 0.2 percent, respectively. Uptick in miscellaneous items remained at 0.2 percent for three consecutive months.
• Prices in AONCR went up to 0.7 percent in March from 0.6 percent in February. This was due to the upward price increases in FBT and FLW items at 0.9 percent and 1.3 percent, respectively from their corresponding last month’s rates of 0.8 percent and -0.7 percent. Price additions in clothing items were however slower at 0.4 percent from 0.8 percent; H&R items, 0.6 percent from 0.9 percent; and miscellaneous items, 0.5 percent from 0.6 percent. Price additions in services items remained at 0.4 percent.
• Eleven regions registered higher month-on-month inflation rates with the highest rate of 1.4 percent noted in Bicol region. Zamboanga Peninsula posted a negative rate of 0.2 percent during the month, the lowest among the regions.
• Excluding NCR, Visayas posted higher price increment compared to Luzon and Mindanao.

By Commodity Group, Month-on-Month

• The 1.2 percent gain in the prices of the heavily weighted FBT items from 0.6 percent pushed up the overall month-on-month inflation rate to 0.9 percent in March from 0.3 percent in February. Higher prices of FLW and services items at 1.6 percent and 0.5 percent, respectively from their corresponding previous month’s rates of -1.0 percent and 0.1 percent also contributed to the uptrend. On the other hand, price add-ons in clothing and H&R items were correspondingly slower at 0.5 percent and 0.4 percent from their respective last month’s growth rates of 1.3 percent and 0.6 percent while price hikes in miscellaneous items still remained at 0.5 percent.
• Retail prices of rice at the national level jumped by 3.2 percent in March from 0.5 percent in February; NCR, 7.9 percent from 0.2 percent; and AONCR, 2.6 percent from 0.6 percent. Among the regions, Bicol posted the highest monthly growth rate at 8.7 percent followed by Davao at 3.5 percent. Meanwhile, Zamboanga Peninsula recorded a monthly rate at -0.6 percent.
• The tight supply of pork was mainly responsible for its increased price during the month. Higher prices of beef and chicken were also noticed. These factors raised the meat index in the three areas: Philippines, 2.4 percent in March from 0.2 percent in February; NCR, 3.4 percent from -0.4 percent; and AONCR, 1.9 percent from 0.5 percent.
• The limited supply of cooking oil pushed up their prices in the markets. Upward price adjustments of meals eaten outside the home and selected spices and seasonings were also observed during the month. These factors resulted to a 1.0 percent increment in the miscellaneous foods index in the Philippines; 1.6 percent in NCR; and 0.8 percent in AONCR.
• Prices of milk and milk products were still up during the month. Thus, the dairy products index in the Philippines moved up to 1.5 percent; NCR, 1.3 percent; and AONCR, 1.6 percent. These were however slower than their corresponding previous month’s rates of 2.1 percent, 2.0 percent and 2.2 percent.
• Increments in the prices of corn in many regions effected a 4.0 percent rise in the index in the Philippines and AONCR from their corresponding last month’s rates of 1.6 percent and 1.7 percent. However, prices of corn in NCR remained stable as its index continued to post a zero growth rate.
• The weather condition favored vegetable production during the month. Hence, adequate supply of all vegetables types both of the temperate and tropical ones was observed. Lower prices of selected fruits were also noted. Thus, the index of fruits and vegetables in the Philippines and AONCR further dropped by -3.4 percent and -2.9 percent, respectively from their corresponding last month’s rates of -2.3 percent and -1.1 percent. In NCR, the index of fruits and vegetables also went down by -4.9 percent compared to its last month’s rate of -6.3 percent.
• The good catch of fishermen due to the favorable weather conditions experienced during the month provided sufficient supply of fish in the markets. Moreover, ample supply of in-season fish species like tuna was also observed. These factors generally pushed down the prices of fish by -0.2 percent from 1.5 percent in AONCR. Meanwhile, prices of fish species in NCR went up by 1.6 percent from 0.4 percent. These mixed price trends resulted to a 0.1 percent gain in the national index, slower than the 1.3 percent growth last month.
• The FLW index in the Philippines accelerated by 1.6 percent in March from -1.0 percent in February; NCR, 2.1 percent from -1.6 percent; and AONCR, 1.3 percent from -0.7 percent. This was brought about by the increased charges in electricity rates and the price hikes in kerosene and firewood.
• Upward adjustments in the prices of gasoline and diesel in most of the regions including NCR raised the services index in the Philippines by 0.5 percent; NCR, 0.8 percent; and AONCR, 0.4 percent.
• With the increments in the prices of selected construction materials nationwide, the H&R index ticked by 0.4 percent in the Philippines, 0.1 percent in NCR and 0.6 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).

Source: National Statistics Office
Manila, Philippines