· The overall year-on-year headline inflation rate slowed down to 11.9 percent in September from 12.5 percent in August due to the slower annual price hikes of the heavily weighted food, beverages and tobacco (FBT) and services items. Inflation a year ago was 2.7 percent.

· Annual inflation rate in the National Capital Region (NCR) likewise eased to 8.2 percent in September from 8.7 percent in August. This was brought about by the lower annual increments in the prices of FBT, services and miscellaneous items.

· Annual inflation rate in Areas Outside the National Capital Region (AONCR) decelerated to 13.6 percent in September from 14.2 percent in August as lower annual rates of price gains were recorded in FBT, fuel, light and water (FLW) and services items.

• Excluding selected food and energy items, core inflation further went up to 7.5 percent in September from 7.0 percent in August.

• Consumer prices generally went down by -0.4 percent in September 0.3 percent in August. This was mainly effected by the declines in the prices of rice, corn and meat during the month. The general downward adjustments in electricity rates and the series of rollbacks in the prices of LPG, kerosene, gasoline and diesel also contributed to the downtrend.

CONSUMER PRICE INDEX
(2000=100)
SEPTEMBER 2008

By Region, Year-on-Year

• The annual inflation rate in NCR improved by 0.5 percentage point to 8.2 percent in September from 8.7 percent in August.
• Similarly, annual inflation rate in AONCR slipped to 13.6 percent in September from 14.2 percent in August as all the regions except for CALABARZON posted lower annual inflation rates. The biggest decrease was in Zamboanga Peninsula at 2.3 percentage points (17.1% from 19.4%). The lowest annual rate was recorded in CALABARZON at 10.9 percent while the highest was still in Caraga at 19.9 percent.

By Commodity Group, Year-on-Year

• Slowdowns in the annual inflation rates were correspondingly registered in the indices of FBT and services at 16.2 percent and 12.1 percent in September from 17.2 percent and 13.5 percent, respectively. Meanwhile, inflation for clothing was higher at 4.8 percent in September from 4.6 percent in August; housing and repairs (H&R), 5.2 percent from 5.0 percent; FLW, 8.5 percent from 7.4 percent; and miscellaneous items, 3.5 percent from 3.3 percent.
• The country’s annual inflation rate for food alone continued to improve at 17.0 percent in September from 18.1 percent in August.
• Annual price hike in rice slid to 37.3 percent in September from 45.1 percent in August; corn, 26.8 percent from 31.5 percent; eggs, 6.1 percent from 6.2 percent; and fruits and vegetables, 15.9 percent from 16.1 percent. On the other hand, annual price gains were higher in cereal preparations at 20.0 percent from 18.8 percent; dairy products, 14.2 percent from 13.8 percent; fish, 10.0 percent from 9.4 percent; meat, 11.0 percent from 10.6 percent; and miscellaneous foods, 9.3 percent from 9.1 percent.
• In NCR, the annual inflation rate for FBT decelerated to 11.2 percent in September from 11.9 percent in August; services, 12.8 percent from 15.5 percent; and miscellaneous items, 2.3 percent from 2.4 percent. Meanwhile, inflation rates for H&R and FLW were however higher at 3.2 percent and 2.5 percent, respectively from their corresponding previous month’s rates of 3.1 percent and -1.7 percent. Annual inflation for clothing remained at 5.5 percent.
  • Inflation rate for food alone in NCR further slackened to 11.6 percent in September from 12.4 percent in August.
  • An annual price reduction was still observed in fish at -3.7 percent in September from -4.0 percent in August. Moreover, lower annual price increments were noticed in rice at 33.3 percent from 47.8 percent; corn, 3.6 percent from 4.7 percent; and fruits and vegetables, 11.3 percent from 13.3 percent. Annual price increases were however higher in cereal preparations at 20.5 percent from 19.9 percent; dairy products, 12.7 percent from 12.5 percent; fish, 6.1 percent from 4.8 percent; meat, 9.1 percent from 7.7 percent; and miscellaneous foods, 6.4 percent from 5.8 percent.
• In AONCR, annual inflation rate for FBT index further moved at slower pace of 17.8 percent in September from 18.9 percent in August and FLW and services, 11.7 percent from their corresponding last month’s figures of 12.6 percent and 12.3 percent.
  • Annual inflation rate for food alone in AONCR at 18.7 percent in September was slower compared to 19.9 percent in August.
  • Annual price movement in rice moved slowly at 37.8 percent in September from 44.7 percent in August as all the regions recorded slower annual rates. The biggest slowdown of 14.5 percentage points (31.2% from 45.7%) was noticed in Zamboanga Peninsula.
  • Slower annual price gains were also correspondingly posted in corn and eggs at 27.2 percent and 9.4 percent from their last month’s rates of 32.0 percent and 9.6 percent, respectively.
  • Faster annual price add-on was however registered in cereal preparations at 19.7 percent in September from 18.5 percent in August; dairy products, 14.8 percent from 14.4 percent; fish, 10.9 percent from 10.5 percent; fruits and vegetables, 17.3 percent from 16.9 percent; meat, 12.0 percent from 11.9 percent; and miscellaneous foods, 10.7 percent from 10.5 percent.

By Region, Month-on-Month

• Prices in NCR dropped by -0.6 percent in September from 0.1 percent in August. This was primarily due to the reductions in the prices of FLW and services items at -0.8 percent and -2.3 percent, respectively from their corresponding last month’s rates of zero growth and 0.2 percent. In addition, price increases of H&R slowed to 0.1 percent from 0.2 percent. Prices of FBT items however picked up to 0.1 percent from -0.2 percent while those for clothing items remained at 0.1 percent. The aggregate index of miscellaneous items posted a zero growth rate from 0.6 percent.
• The month-on-month growth rate in AONCR declined by -0.2 percent in September from 0.4 percent in August. Prices of FBT items decreased by -0.2 percent from 0.1 percent; FLW items, -1.6 percent from 1.0 percent; and services items, -0.5 percent from 1.6 percent. Moreover, price gains in H&R items eased to 0.3 percent from 0.4 percent. On the contrary, price increases of clothing and miscellaneous items were higher at 0.4 percent from 0.3 percent.
• Except for Ilocos, CALABARZON and Western Visayas, all the regions posted negative monthly growth rates. Zamboanga Peninsula and Caraga have the lowest rate of -1.6 percent while the highest month-on-month inflation of 0.2 percent was seen in CALABARZON and Western Visayas.
• Price declines were bigger in Mindanao regions than those in Luzon and Visayas.

By Commodity Group, Month-on-Month

• The month-on-month inflation rate at the national level went down by -0.4 percent in September from 0.3 percent in August. This was effected by the downward adjustments in the prices of the heavily weighted FBT items at -0.2 percent from zero growth; FLW items, -1.4 percent from 0.7 percent; and services items, -1.2 percent from 1.0 percent. Moreover, improved monthly growth rates were registered in the indices of H&R and miscellaneous items at 0.2 percent from 0.4 percent. On the contrary, price hikes in clothing items were higher at 0.3 percent from 0.2 percent.
• The sufficient supply of rice brought about by the harvests of palay continued to pull down the group’s index in the Philippines by -2.7 percent from -2.2 percent; NCR, -3.0 percent from -5.2 percent; and AONCR, -2.6 percent from -1.7 percent. Among the regions in AONCR, Davao still posted the lowest rate of -9.2 percent while Central Visayas had the highest rate of 1.1 percent.
• Enough supply of corn caused its prices in AONCR and in the Philippines to drop by -4.5 percent and -4.4 percent, respectively. Price of corn in NCR however still recorded a 0.1 percent increase during the month.
• Lower prices of chicken and pork in selected regions including NCR were observed during the month. Thus, the meat index in the Philippines went down by -0.3 percent from 0.2 percent; NCR, -0.7 percent from -0.6 percent; and AONCR, -0.1 percent from 0.6 percent.
• Excessive rains caused supply lags of vegetables in the markets thereby causing their prices to move up. Selected fruits were also priced higher this month. These factors raised the fruits and vegetables index in the Philippines by 1.7 percent; NCR, 1.6 percent and AONCR, 1.8 percent.
• Prices of selected fish species continued to increase during the month as the stormy weather conditions constrained fishermen to conduct their usual fishing trips. Upward adjustments in the prices of canned fish were also noticed. These made the fish index at the national level and AONCR to climb by 0.7 percent and NCR, 0.9 percent.
• With the increments in the prices of cooking oil, tea, powdered tonic drink, margarine and selected spices and seasonings in many regions including NCR, the miscellaneous foods index in the Philippines grew by 0.4 percent; NCR, 0.9 percent and AONCR, 0.3 percent.
• The series of price cuts in gasoline and diesel mainly effected a decrease in the services index in the three areas: Philippines, -1.2 percent from 1.0 percent; NCR, -2.3 percent from 0.2 percent; and AONCR, -0.5 percent from 1.6 percent.
• The price reductions in LPG and kerosene primarily pushed down the FLW index in the Philippines by -1.4 percent from 0.7 percent; NCR, -0.8 percent from zero growth; and AONCR, -1.6 percent from 1.0 percent.
• Prices of selected construction materials generally went up during the month. Thus, the H&R index at the national level rose by 0.2 percent; NCR, 0.1 percent; and AONCR, 0.3 percent.

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