| Year-on-Year Inflation Rates, All Items | ||||
|---|---|---|---|---|
| Aug 2014 | July 2014 | Aug 2013 | Year-to-date | |
| Philippines | ||||
| Headline | 4.9 | 4.9 | 2.1 | 4.4 |
| Core | 3.4 | 3.0 | 1.9 | 3.0 |
| NCR | ||||
| Headline | 4.4 | 3.9 | -0.1 | 3.4 |
| AONCR | ||||
| Headline | 5.0 | 5.1 | 2.7 | 4.7 |
The country’s annual headline inflation was registered at 4.9 percent in August. It was the same rate recorded last month. In August 2013, the rate was at 2.1 percent. Mixed movements in the annual growths among the commodity groups were noticed during the month. The indices for food and non-alcoholic beverages; clothing and footwear; housing, water, electricity, gas and other fuels; furnishing, household equipment and routine maintenance of the house; and health posted higher annual rates while slowdowns were observed in transport and restaurant and miscellaneous goods and services indices. Those for the rest of the commodity groups remained at their previous month’s rates.
Excluding selected food and energy items, core inflation advanced to 3.4 percent in August. It was 3.0 percent last month and 1.9 percent during the same month a year ago.
Annual inflation in the National Capital Region (NCR) accelerated 4.4 percent in August. It was pegged at 3.9 percent a month ago and -0.1 percent in August 2013. Faster annual growths were seen in the indices of food and non-alcoholic beverages; clothing and footwear; housing, water, electricity, gas and other fuels; and restaurant and miscellaneous goods and services.
Annual inflation in Areas Outside NCR (AONCR) however, eased to 5.0 percent in August. Inflation was 5.1 percent last month and 2.7 percent during the same period a year ago. A negative annual rate was noted in the communication index. In addition, slower annual growths were observed in the indices of food and non-alcoholic beverages and transport.
| Year-on-Year Inflation Rates in the Philippines, All Items January 2009 - August 2014 (2006=100) | ||||||
|---|---|---|---|---|---|---|
Month | Year | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |
| January | 7.1 | 3.9 | 4.0 | 4.0 | 3.1 | 4.2 |
| February | 7.2 | 3.9 | 4.7 | 2.7 | 3.4 | 4.1 |
| March | 6.7 | 3.9 | 4.9 | 2.6 | 3.2 | 3.9 |
| April | 5.6 | 4.0 | 4.7 | 3.0 | 2.6 | 4.1 |
| May | 4.3 | 3.9 | 4.9 | 3.0 | 2.6 | 4.5 |
| June | 3.2 | 3.6 | 5.2 | 2.9 | 2.7 | 4.4 |
| July | 2.2 | 3.7 | 4.9 | 3.2 | 2.5 | 4.9 |
| August | 1.7 | 4.1 | 4.6 | 3.8 | 2.1 | 4.9 |
| September | 2.3 | 3.8 | 4.7 | 3.7 | 2.7 | |
| October | 2.9 | 3.3 | 5.2 | 3.2 | 2.9 | |
| November | 3.5 | 3.7 | 4.7 | 2.8 | 3.3 | |
| December | 4.4 | 3.6 | 4.2 | 3.0 | 4.1 | |
| Average | 4.2 | 3.8 | 4.6 | 3.2 | 3.0 | |
| Month-on-Month Inflation Rates, All Items (2006=100) | ||
|---|---|---|
| Aug 2014 | Jul 2014 | |
| Philippines | 0.3 | 0.6 |
| NCR | 0.5 | 0.3 |
| AONCR | 0.2 | 0.6 |
Price increments in consumer items in the Philippines decelerated to 0.3 percent in August. The monthly growth in the heavily-weighted food and non-alcoholic beverages index slowed down to 0.6 percent due to price reductions in vegetables and selected spices and condiments together with the lower monthly upticks in the prices of rice, corn, milk, cooking oil and sugar despite higher prices of fish and fruits. Moreover, price rollback in gasoline and diesel and the slower monthly hikes in alcoholic beverages and selected items for personal care softened the faster rates registered in the prices of footwear items and higher charges in electricity rates.
CONSUMER PRICE INDEX
(2006=100)
AUGUST 2014
By Region, Year-on-Year
- Annual inflation in NCR jumped to 4.4 percent in August.
The year-on-year growth in AONCR however, improved to 5.0 percent in August. Annual inflation slowed down in nine regions with Davao region having the lowest annual gain of 4.0 percent. Meanwhile, the highest annual rate of 7.7 percent was still noted in Eastern Visayas.
By Commodity Group, Year-on-Year
A higher annual mark-up was posted in food and non-alcoholic beverages index at the national level at 8.3 percent in August; clothing and footwear index, 3.4 percent; housing, water, electricity, gas and other fuels and furnishing, household equipment and routine maintenance of the house indices, 2.7 percent; and health index, 3.3 percent. Annual inflation in the rest of the commodity either decelerated or remained at their last month’s rates.
The country’s inflation in the food alone index climbed to 8.7 percent in August. It was the same rate registered last month and was 1.8 percent in August 2013.
Except for indices of rice, vegetables and food products not elsewhere classified whose annual increments were slower during month, all the food groups had higher annual upticks.
In NCR, the annual growth in food and non-alcoholic beverages index kicked up to 8.5 percent in August; clothing and footwear index, 4.2 percent; housing, water, electricity, gas and other fuels index, 2.4 percent; and restaurant and miscellaneous goods and services index, 1.6 percent. The rest of the commodity groups either moved up at slower rates or retained their previous month’s rate.
On an annual basis, the food alone index in NCR picked up by 9.0 percent in August. Annual adjustment was pegged at 8.2 percent last month and in August 2013, -0.3 percent.
Higher annual rates were seen in all the food groups except in rice and fish indices which had lower annual gains.
In AONCR, annual movements in food and non-alcoholic beverage index slowed to 8.2 percent in August and in transport index, 1.1 percent. On the other hand, the annual rates in the indices of housing, water, electricity, gas and other fuels and furnishing, household equipment and routine maintenance of the house were correspondingly higher at 2.9 percent and 2.3 percent. Those for the other commodity groups remained at their last month’s rates.
The annual increase of the food alone index in AONCR improved to 8.7 percent in August. Last month, it was posted at 8.8 percent and 2.2 percent during the same month a year ago.
With eleven regions having slower annual upticks in the rice index, the group’s inflation slid to 13.1 percent in August. The lowest rate of 6.7 percent remained in ARMM while the highest annual growth of 17.1 percent was still registered in Ilocos region.
Lower annual increments were likewise observed in the indices of vegetables and food products not elsewhere classified at 14.7 percent and 9.0 percent, respectively. Annual rates were however higher in the rest of the food groups.
By Region, Month-on-Month
Price hike in consumer items in NCR was recorded at 0.5 percent in August. Last month, it moved by 0.3 percent. The heavily-weighted food and non-alcoholic beverages index grew by 1.3 percent and housing, water, electricity, gas and other fuels index, 0.4 percent. On the other hand, the transport index declined by 0.4 percent. The other commodity groups either had slower monthly gains or had zero growth.
Price add-ons in AONCR eased to 0.2 percent in August. It was pegged at 0.6 percent last month. This can be attributed to the declines of 0.4 percent in the index for transport and -0.1 percent in the communication index. In addition, the monthly growth in food and non-alcoholic beverages index was slower at 0.4 percent and in alcoholic beverages and tobacco and health indices, both at 0.1 percent. Meanwhile, the monthly adjustments in the indices of housing, water, electricity, gas and other fuels and restaurant and miscellaneous goods and services were higher at 0.1 percent and 0.2 percent, respectively. The other commodity groups retained their last month’s rate with the education index having a zero growth during the month.
Price additions in eleven regions were slower. Moreover, a zero growth was noticed in Central Luzon and SOCCSKSARGEN.
Among the three big areas of the country, price increases in consumer items in Mindanao were generally slower than those in Luzon and Visayas areas.
By Commodity Group, Month-on-Month
Measured from a month ago level, prices in the Philippines went up but at a slower rate of 0.3 percent in August. In July, the rate was 0.6 percent. This was due to the 0.4 percent decrease in the index of transport. Slower monthly mark-ups in all the commodity groups except in clothing and footwear and housing, water, electricity, gas and other fuels indices also contributed to the downtrend. The furnishing, household equipment and routine maintenance of the house and communication indices retained their respective previous month’s rates of 0.2 percent and zero growth. The education index had a zero growth during the month.
In AONCR, the increment in the prices of rice during the lean month of August decelerated to 1.0 percent as ten regions had slower monthly price gains. Likewise, the growth in the rice index in NCR eased to 0.8 percent and at the national level, 0.9 percent.
The tight supplies of chicken in the markets caused its prices to go up during the month. This factor primarily raised the meat index in the three areas: Philippines, 0.7 percent; NCR, 1.5 percent; and AONCR, 0.5 percent. Higher prices of pork, beef, processed and canned meat were also noted in many regions.
The fruit index in the Philippines accelerated 2.9 percent; NCR, 4.0 percent; and AONCR, 2.7 percent due to higher prices of mango, banana and pineapple.
Typhoon “Henry” further enhanced the habagat season particularly in the Visayas region, making it difficult to catch fish and other sea foods. This factor limited supplies of fish in the markets thereby pushing up their prices during the month. Thus, the fish index in NCR advanced by 1.3 percent and in AONCR and in the Philippines, 0.8 percent.
The vegetables index in the Philippines went down by 1.4 percent and in AONCR, -2.1 percent due to sufficient supplies of selected vegetables in the markets particularly garlic and carrots. On the other hand, higher prices of eggplant, tomatoes, chayote, stringbeans and bitter gourd in NCR markets resulted to a 2.0 percent growth in its vegetables index during the month.
The general downward price adjustments in selected spices and condiments such as ginger, calamansi and culinary herbs in many regions caused a 0.8 percent reduction in the index of food products not elsewhere classified in AONCR. Meanwhile, the group’s index in NCR picked up by 1.5 percent due to higher price quotations in ginger, calamansi and matured coconut. At the national level, the index went down by 0.4 percent.
Price add-ons in meals eaten outside the home in some regions were noted during the month. Selected items for personal care and effects were also priced higher. Thus, a 0.1 percent growth was posted in the index for restaurant and miscellaneous goods and services in NCR and 0.2 percent in AONCR. In the Philippines, the group’s index had a 0.1 percent growth.
Upward adjustments in the charges for electricity rates mainly effected a 0.4 percent increment in the housing, water, electricity, gas and other fuels index in NCR and 0.1 percent in AONCR. Higher prices of selected construction materials were also noticed in selected regions. Hence, the national index moved up by 0.2 percent.
A 0.4 percent decrease in the transport index in the three areas was brought about by the series of price rollbacks in gasoline and diesel during the month.
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.) LISA GRACE S. BERSALES, Ph.D.
National Statistician
