OCTOBER AND SEPTEMBER 2007
Year-on-Year Inflation Rates, All Items | |||
| October | September | Year-to-date | |
| Philippines | |||
| Headline | 2.7 | 2.7 | 2.6 |
| Core | 2.4 | 2.7 | 2.8 |
| NCR | |||
| Headline | 2.4 | 2.8 | 2.5 |
| AONCR | |||
| Headline | 2.9 | 2.5 | 2.6 |
Year-on-year headline inflation rate at the national level was posted at 2.7 percent in October, the same rate registered in September. Inflation for food, beverages and tobacco (FBT), housing and repairs (H&R) and miscellaneous items remained at their last month’s rates. Inflation a year ago was 5.4 percent.
On the other hand, inflation rate in the National Capital Region (NCR) decelerated to 2.4 percent in October from 2.8 percent in September mainly due to the 4.3 percentage points decline in the inflation rate of fuel, light and water (FLW). Slowdowns in the annual price increases of FBT, clothing and H&R items also contributed to the downtrend.
Inflation rate in Areas Outside the National Capital Region (AONCR) picked up to 2.9 percent in October from 2.5 percent in September. Higher annual inflation rates were recorded in all the commodity groups except for clothing and H&R.
Excluding selected food and energy items, core inflation continued to move at a slower rate of 2.4 percent in October from 2.7 percent in September.
Month-on-Month Inflation Rates, All Items | ||
| October | September | |
| Philippines | 0.2 | 0.1 |
| NCR | -0.1 | -0.2 |
| AONCR | 0.4 | 0.3r |
The series of price hikes in gasoline and diesel and higher prices of selected food items such as flour and flour products, milk and milk products, eggs, fish, meat, fruits and vegetables raised the overall month-month inflation rate to 0.2 percent in October from 0.1 percent in September.
CONSUMER PRICE INDEX
(2000=100)
OCTOBER 2007
By Region, Year-on-Year
The inflation rate in NCR slowed down by 0.4 percentage point to 2.4 percent in October from 2.8 percent in September.
Inflation rate in AONCR picked up by 0.4 percentage point to 2.9 percent in October from 2.5 percent in September. Higher annual inflation rates were recorded in all the regions except for Northern Mindanao and Autonomous Region in Muslim Mindanao (ARMM). The biggest increment of 0.6 percentage point was noticed in CAR (2.3% from 1.7%), Davao (2.8% from 2.2%) and SOCCSKSARGEN (3.6% from 3.0%). ARMM still posted the highest annual rate of 4.3 percent while Caraga had the lowest rate of 2.1 percent.
By Commodity Group, Year-on-Year
Annual inflation rate was higher in services items at 3.5 percent in October from 2.4 percent in September while slower upward price movements were correspondingly registered in clothing and FLW at 1.9 percent and 1.0 percent from their respective last month’s rates of 2.0 percent and 2.2 percent. Annual price adjustments in FBT, H&R and miscellaneous items remained at their corresponding previous month’s rates of 3.5 percent, 1.2 percent and 1.4 percent.
The national inflation rate for food alone rose to 3.5 percent in October from 3.4 percent in September.
On an annual basis, the price of rice moved upward at a faster rate of 6.7 percent in October from 6.0 percent in September; dairy products, 6.8 percent from 5.9 percent; eggs, 7.6 percent from 7.0 percent; and miscellaneous foods, 2.1 percent from 1.9 percent. Meanwhile, annual price addition in corn was slower at 2.7 percent from 3.5 percent; fish, 3.1 percent from 3.2 percent; fruits and vegetables, 0.9 percent from 2.5 percent; and meat, 2.5 percent from 2.8 percent. Price hikes in cereal preparations remained at its previous month’s rate of 3.4 percent.
In NCR, annual inflation rate for FBT eased to 2.9 percent in October from 3.8 percent in September; clothing, 1.8 percent from 2.0 percent; H&R, 1.0 percent from 1.1 percent; and FLW, 0.2 percent from 4.5 percent. On the other hand, inflation for services jumped to 4.3 percent from 2.6 percent while that of miscellaneous items remained at 1.2 percent.
Inflation for food alone in NCR slid to 2.9 percent in October from 3.9 percent in September.
A negative annual rate of 3.3 percent was registered in the prices of fruits and vegetables in October from a 1.7 percent growth in September. Moreover, annual price gain in rice decelerated to 11.1 percent from 11.5 percent; corn, 13.5 percent from 13.6 percent; cereal preparations, 3.5 percent from 3.7 percent; fish, 0.5 percent from 1.2 percent; and meat, 3.2 percent from 4.3 percent. On the contrary, inflation rates for dairy products and eggs were correspondingly higher at 5.6 percent and 8.9 percent from 5.4 percent and 8.2 percent, respectively. Miscellaneous foods maintained its last month’s growth rate of 2.4 percent.
In AONCR, inflation rate for FBT went up to 3.6 percent in October from 3.3 percent in September; FLW, 1.4 percent from 1.0 percent; services, 3.0 percent from 2.2 percent; and miscellaneous items, 1.5 percent from 1.4 percent. However, inflation for clothing eased to 1.8 percent from 1.9 percent. For three consecutive months, inflation for H&R remained at 1.4 percent.
Inflation rate for food alone in AONCR advanced to 3.7 percent in October from 3.3 percent in September.
Higher annual price adjustment was observed in rice at 6.1 percent in October from 5.3 percent in September. Except for Central Visayas, Zamboanga Peninsula and ARMM, all the regions recorded faster annual inflation rates. The biggest uptick of 3.0 percentage points was observed in Davao (5.8% from 2.8%).
Annual price add-ons were also higher in cereal preparations at 3.5 percent from 3.3 percent; dairy products, 7.4 percent from 6.1 percent; eggs, 7.1 percent from 6.7 percent; fish, 3.8 percent from 3.6 percent; meat, 2.2 percent from 2.1 percent; and miscellaneous foods, 1.9 percent from 1.5 percent. In contrast, annual price gains in corn and fruits and vegetables slipped to 2.4 percent and 2.3 percent, respectively from their corresponding last month’s rates of 3.3 percent and 2.8 percent.
By Region, Month-on-Month
A 0.1 percent drop was noted in the month-on-month inflation rate in NCR in October from -0.2 percent in September. This was mainly effected by the 4.6 percent decline in the prices of FLW items. Price increases of FBT items also improved to 0.6 percent from 0.7 percent. Meanwhile, price increments of clothing and services items were correspondingly higher at 0.1 percent and 0.6 percent from zero growth and 0.1 percent, respectively. Prices of H&R and miscellaneous items remained stable as their group’s index posted a zero growth rate.
Prices in AONCR inched up by 0.4 percent in October from 0.3 percent in September. This can be primarily attributed to the corresponding price gains of FLW and services items at 0.1 percent and 0.4 percent from a negative rate of 0.9 percent and zero growth, respectively. In addition, prices of H&R and miscellaneous items also correspondingly moved upward by 0.1 percent and 0.2 percent from their respective last month’s rates of zero growth and 0.1 percent. Upward price adjustments in FBT items were however slower at 0.5 percent from 0.7 percent while those of clothing items remained at 0.1 percent.
The highest month-on-month inflation rate of 0.9 percent was noticed in Bicol while the lowest rate of -0.5 percent was in ARMM.
With the uptrend in the prices in Ilocos, CALABARZON and Bicol, the island of Luzon generally posted the highest monthly growth rate compared to Visayas and Mindanao. Meanwhile, the price increments in regions in Visayas were slower compared to their last month’s rates. Among the three big islands of the archipelago, movements of prices in Mindanao were generally slowest compared to Luzon and Visayas. ARMM was the only region in the Philippines that had a negative monthly growth rate during the month. Stable prices were generally recorded in Zamboanga Peninsula as its aggregate index posted a zero growth rate.
By Commodity Group, Month-on-Month
The national month-on-month inflation rate rose by 0.2 percent in October from 0.1 percent in September brought about by the 0.5 percent additions in the prices of services items from 0.1 percent. Increases in the prices of H&R items at 0.1 percent from zero growth also contributed to the uptrend. On the other hand, price hikes in FBT items eased to 0.5 percent from 0.7 percent while those for clothing and miscellaneous items remained at 0.1 percent. Downward price adjustments were still seen in FLW items at -1.5 percent from -2.4 percent.
The delayed deliveries of vegetables brought about by the rains experienced during the early part of October generally pushed their prices up. Add-ons in the prices of fruits particularly mango, papaya and banana were also noticed in many regions. Thus, the fruits and vegetables index in the Philippines picked up by 2.1 percent; NCR, 3.3 percent; and AONCR, 1.6 percent.
The difficulty in catching fish species brought about by unfavorable water conditions resulted to less supply in the wet markets. Higher prices of canned fish were also noted during the month. Hence, the fish index in the Philippines increased by 0.9 percent from 0.2 percent; NCR, 1.3 percent from -0.3 percent; and AONCR, 0.8 percent from 0.4 percent.
Prices of cooking oil, sugar, coffee, tea and selected spices and seasonings were still up in many regions including NCR. Prices of meals eaten outside the home also went up in some regions. These factors raised the miscellaneous foods index in the Philippines by 0.3 percent; NCR 0.1 percent; and AONCR, 0.4 percent.
With the inflow of deliveries of newly harvested rice in the NCR markets, its index in the area decreased by -0.1 percent from 7.5 percent. Likewise, the harvest season also improved the supply of rice in the markets in AONCR. With eight regions registering a slower rate of price increases and six regions posting negative monthly growth rates in the index, the aggregate index of rice in AONCR and in the Philippines correspondingly decelerated to 0.4 percent and 0.3 percent from 2.2 percent and 2.9 percent, respectively.
The continued rising prices of imported raw materials for the manufacture of milk and milk products further pulled up the index of dairy products in the three areas: Philippines, 1.2 percent from 0.7 percent; NCR, 0.7 percent from 0.4 percent; and AONCR, 1.4 percent from 0.8 percent.
The index for cereal preparations went up by 0.5 percent in the Philippines, 0.6 percent in NCR and 0.4 percent in AONCR due to higher prices of flour and flour products.
The sufficient supply of corn in the markets due to its continued good production further brought down the group’s index in the Philippines and AONCR by -1.5 percent and -1.6 percent, respectively from -0.9 percent. Prices of corn in NCR also declined by -0.1 percent from a growth of 1.1 percent in September.
The tight supply of chicken and beef in some provinces raised their prices in the markets. In addition, pork prices were also higher in a few regions. Prices of canned meat were also up in selected provinces. All these factors pushed up prices of meat in the Philippines and AONCR by 0.1 percent from their corresponding last month’s rates of -0.7 percent and -0.2 percent. In NCR, the index dropped by -0.1 percent from -1.9 percent due to the continued reductions in the prices of fresh meat.
Upward adjustments in the prices of gasoline and diesel in many regions including NCR primarily effected the 0.5 percent gain in the services index in the Philippines, 0.6 percent in NCR and 0.4 percent in AONCR. Higher prices of medicines and selected medical and health goods in some regions also contributed to the increase.
The miscellaneous items index in the Philippines and AONCR gained by 0.1 percent and 0.2 percent, respectively as add-ons in the prices of selected items for household operations and furnishings and personal care and effects were still noticed in some regions. Prices in NCR however remained stable as its group’s index recorded a zero growth rate during the month.
Lower charges in the generation and system loss along with the discounts given to residential consumers in the electricity rates in NCR mainly brought declines in the FLW index in the area and in the Philippines by -4.6 percent and -1.5 percent, respectively. However, the series of price gains in LPG and kerosene in many regions during the second half of the month effected the 0.1 percent growth in the FLW index 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).
| (Sgd.) CARMELITA N. ERICTA Administrator |
Source: National Statistics Office
Manila, Philippines
Page last updated: November 6, 2007
