MAY AND APRIL 2010
| Year-on-Year Inflation Rates, All Items | |||
| May | April | Year-to-date | |
| Philippines | |||
| Headline | 4.3 | 4.4 | 4.3 |
| Core | 3.8 | 4.0r | 3.6 |
| NCR | |||
| Headline | 4.6 | 5.3 | 4.4 |
| AONCR | |||
| Headline | 4.2 | 4.1 | 4.2 |
The year-on-year headline inflation rate in the Philippines slowed down to 4.3 percent in May from 4.4 percent in April due mainly to the slower annual growth rate registered in fuel, light and water (FLW) index. Inflation a year ago was 3.3 percent.
Excluding selected food and energy items, core inflation decelerated to 3.8 percent in May from 4.0 percent in April.
Likewise, annual inflation rate in the National Capital Region (NCR) eased to 4.6 percent in May from 5.3 percent in April. Slower annual price increases were posted in all the commodity groups except in clothing and housing and repairs (H&R) index.
Annual inflation in Areas Outside the National Capital Region (AONCR) however went up at a faster rate of 4.2 percent in May from 4.1 percent in April. This was effected by higher annual price increments in clothing, FLW and services index. 
| Year-on-Year Inflation Rates in the Philippines, All Items January 2005 - May 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 | |
| July | 7.1 | 6.4 | 2.6 | 12.3 | 0.2 | |
| 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 | ||
| May | April | |
| Philippines | -0.2 | 0.5 |
| NCR | -1.0 | 1.4 |
| AONCR | 0.1 | 0.2 |
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The decline in electricity rates in NCR primarily pushed down the movement of the overall consumer prices to -0.2 percent in May from 0.5 percent in April. Price decreases in kerosene, gasoline and diesel in NCR also contributed to the downtrend.
CONSUMER PRICE INDEX
(2000=100)
MAY 2010
By Region, Year-on-Year
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The annual inflation rate in NCR eased to 4.6 percent in May from 5.3 percent in April.
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Annual inflation rate in AONCR however picked up to 4.2 percent in May from 4.1 percent in April. Eight regions posted higher annual inflation rates with the biggest uptick of 0.6 percentage point noted in CAR (5.2% from 4.6%), Davao (4.1% from 3.5%) and Caraga (3.6% from 3.0%). The highest annual rate was still observed in ARMM at 6.4 percent while the lowest rate at 3.0 percent was still in Northern Mindanao.
By Commodity Group, Year-on-Year
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The annual price gain in the FLW index at the national level moved up at a slower pace of 16.2 percent in May from 18.0 percent in April. Meanwhile, higher annual price increases were correspondingly noted in clothing and miscellaneous items index at 2.1 percent and 1.5 percent from 2.0 percent and 1.4 percent, respectively. Annual price increments in FBT, H&R and services index remained at their respective previous month’s rates of 3.1 percent, 1.7 percent and 5.8 percent.
The country’s annual inflation for food alone picked up to 3.2 percent in May from 3.1 percent in April.
Higher annual rate of price hike was recorded in fruits and vegetables index at 2.3 percent in May from 2.1 percent in April; meat, 5.3 percent from 4.5 percent; and miscellaneous foods, 5.9 percent from 5.8 percent. On the other hand, the annual price increases in rice and dairy products index correspondingly decelerated to 0.3 percent and 1.6 percent from 0.6 percent and 1.8 percent, respectively. The annual price adjustments in the cereal preparations and eggs index correspondingly remained at 3.2 percent and 2.4 percent while that for the corn index continued to decline to -5.9 percent from -5.3 percent.
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In NCR, a slower annual rate of price increment was registered in the FBT index at 2.2 percent in May from 2.3 percent in April; FLW, 19.1 percent from 25.5 percent; services, 6.6 percent from 6.8 percent; and miscellaneous items, 0.8 percent from 0.9 percent. On the contrary, a higher annual price gain was observed in H&R index at 1.4 percent from 1.3 percent while that for the clothing index remained at 1.4 percent.
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Annual inflation for food alone in NCR moved up at 2.2 percent in May, the same rate recorded in April.
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On an annual basis, price add-on in the corn index was higher at 24.0 percent in May from 23.4 percent in April; eggs, 0.4 percent from -1.8 percent; meat, 4.9 percent from 3.4 percent; and miscellaneous foods, 2.7 percent from 2.5 percent. The annual price increments in cereal preparations and fish index were however slower at 1.7 percent and 3.1 percent, respectively from their corresponding last month rates of 1.8 percent and 3.9 percent. Negative annual rates were noticed in rice at -0.8 percent and fruits and vegetables index, -0.7 percent from their respective rates of 0.8 percent and 1.1 percent. For three consecutive months, the annual price increase in the dairy products index remained at 1.4 percent.
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In AONCR, a higher annual price increase was posted in clothing index at 2.4 percent from 2.3 percent; FLW, 14.6 percent from 13.8 percent; and services, 5.3 percent from 5.2 percent. On the other hand, the annual price addition in H&R index slowed down to 1.9 percent from 2.1 percent while that for FBT and miscellaneous items index moved at their respective last month’s rates of 3.3 percent and 1.6 percent.
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The annual price movement for food alone in AONCR was higher at 3.4 percent in May from 3.3 percent in April.
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A higher annual rate of price gain was seen in the cereal preparations index at 3.8 percent in May from 3.7 percent in April; fruits and vegetables, 3.2 percent from 2.5 percent; and meat, 5.5 percent from 5.0 percent while that for miscellaneous foods index remained at 7.2 percent.
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The annual price hike in the rice index in AONCR decelerated to 0.4 percent in May from 0.6 percent in April. Eleven regions either recorded negative or slower annual rates with SOCCSKSARGEN registering the biggest slowdown of 1.8 percentage points (0.7% from 2.5%).
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A slower annual price increment was also seen in dairy products index at 1.7 percent from 2.0 percent; eggs, 3.0 percent from 3.7 percent, and fish, 3.4 percent from 3.9 percent. Moreover, the annual price movement in corn index further dropped to -6.3 percent from -5.7 percent.
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By Region, Month-on-Month
Consumer prices in NCR declined to -1.0 percent in May from 1.4 percent in April. Prices of FLW and services items correspondingly decreased to -8.6 percent and -0.3 percent from their respective last month’s rates of 11.0 percent and 0.5 percent. On the other hand, price increase in FBT index was higher at 0.2 percent from 0.1 percent while those for clothing and H&R index remained at 0.1 percent. Prices of miscellaneous items generally remained stable as its index posted a zero growth from 0.1 percent.
Prices in AONCR eased to 0.1 percent in May from 0.2 percent in April as prices of FLW items went down to -0.1 percent from 1.9 percent. Price hikes in H&R index were however higher at 0.3 percent from zero growth and services and miscellaneous items index at 0.2 percent from 0.1 percent. Price increments in FBT and clothing index remained at 0.1 percent.
Higher month-on-month inflation rates in May were recorded in six regions. The highest rate of 0.7 percent was noted in CAR while the lowest was registered in CALABARZON and Eastern Visayas at -0.2 percent.
Among the three big areas in the country, price increases in general were higher in Mindanao compared to Luzon and Visayas.
By Commodity Group, Month-on-Month
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The overall consumer prices generally decreased to -0.2 percent in May from 0.5 percent in April. This was due to the -3.4 percent drop in the movement of prices of FLW items from 5.2 percent. On the other hand, the month-on-month inflation rate for miscellaneous items index went up to 0.2 percent from 0.1 percent while those for FBT, clothing and H&R index remained at 0.1 percent. Prices of services items generally remained stable as the group’s index had a zero growth from 0.3 percent.
Upward adjustments in the prices of potato continued to register in many regions including NCR. In addition, the general decline in the volume of deliveries of lowland vegetables in the markets in selected regions including NCR raised their prices. Thus, the fruits and vegetables index in the three areas went up during the month: Philippines, 1.7 percent from 0.1 percent; NCR, 3.7 percent from 1.0 percent; and AONCR, 1.1 percent from -0.2 percent.
Bigger demand for meat due to election and celebration of fiestas in many areas pushed up prices of pork and beef during the month. The stunted growth of chicken brought about by the scorching heat resulted to its less supply in the markets. All these factors contributed to the 0.4 percent growth of meat index in the Philippines from -0.2 percent; NCR, 0.5 percent from -0.6 percent; and AONCR, 0.4 percent from -0.1 percent.
Price mark-ups in selected spices and seasonings raised the miscellaneous foods index in the three areas by 0.2 percent.
With many regions posting negative monthly rates in the rice index, the national index for rice dropped by -0.3 percent from 0.1 percent; NCR, -1.3 percent from 0.4 percent; and AONCR, -0.2 percent from zero growth. The start of harvest season in selected regions brought enough supply of rice in the markets.
The prevalence of hot weather condition during the month favored fishermen in catching fish. This resulted to ample supply of fish species in the markets. Thus, the fish index in the Philippines decreased by -0.4 percent from 0.2 percent; NCR, -1.2 percent from -0.9 percent; and AONCR, -0.2 percent from 0.5 percent.
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With the 12.7 percent decline in the electricity rates in NCR, the FLW index in the area and in the Philippines correspondingly dropped by -8.6 percent and -3.4 percent. Price rollbacks in LPG and kerosene in the area also contributed to the downtrend. Likewise, the FLW index in AONCR also went down to -0.1 percent due to price reductions in LPG.
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The general downward price adjustments in gasoline and diesel in NCR pushed down the services index in the area by -0.3 percent from 0.5 percent. However, as prices of gasoline and diesel generally went up in many regions, the services index in AONCR picked up to 0.2 percent from 0.1 percent. Higher prices of textbooks, school supplies and some medicines in selected regions also contributed to the uptrend. This offsetting trend caused the national index to register a zero growth from 0.3 percent.
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Price hikes in selected construction materials in many regions including NCR pushed the H&R index in the Philippines and NCR by 0.1 percent and 0.3 percent in AONCR.
NOTES:
The following survey reports were not received as of June 4, 2010:
a. Sulu - first and second phase
b. Zambales/Olongapo City - second phase
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: June 4, 2010
