JANUARY 2014 AND DECEMBER 2013
| Year-on-Year Inflation Rates, All Items | |||
|---|---|---|---|
| January 2014 | December 2013 | Year-to-date | |
| Philippines | |||
| Headline | 4.2 | 4.1 | 4.2 |
| Core | 3.2 | 3.2 | 3.2 |
| NCR | |||
| Headline | 2.7 | 2.6 | 2.7 |
| AONCR | |||
| Headline | 4.6 | 4.6 | 4.6 |
The country’s annual headline inflation inched up to 4.2 percent at the beginning of year 2014 from 4.1 percent in December 2013. This was mainly effected by higher annual increment in the heavily-weighted food and non-alcoholic beverages index. Contributing to the uptrend were higher annual growths also recorded in the indices of clothing and footwear; furnishing, household equipment and routine maintenance of the house; health; and recreation and culture. Inflation during the same month a year ago was 3.1 percent
Excluding selected food and energy items, core inflation remained at 3.2 percent in January.
Likewise, annual inflation in the National Capital Region (NCR) further picked up to 2.7 percent in January from 2.6 percent in December. It resulted from higher annual increases registered in the indices of food and non-alcoholic beverages; clothing and footwear; furnishing, household equipment and routine maintenance of the house; health; communication; recreation and culture; and restaurant and miscellaneous goods and services.
Annual inflation In Areas Outside NCR (AONCR) remained at its December rate of 4.6 percent. This can be attributed to the mixed movements of the annual growths among the commodity groups. Higher annual growths were observed in the indices of the five commodity groups namely: 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. Those for the rest of the commodity groups were either slower or remained their last month’s rate with the index for communication posting an annual decline.
Year-on-Year Inflation Rates in the Philippines, All Items
January 2009 - January 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 March 6.7
3.9
4.9 2.6 3.2 April 5.6
4.0 4.7 3.0 2.6 May 4.3
3.9 4.9 3.0 2.6 June 3.2
3.6 5.2 2.9 2.7 July 2.2
3.7 4.9 3.2 2.5 August 1.7
4.1 4.6 3.8 2.1 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) | ||
|---|---|---|
| Jan 2014 | Dec 2013 | |
| Philippines | 0.7 | 0.7 |
| NCR | 0.5 | 0.5 |
| AONCR | 0.6 | 0.8 |
Price hikes were recorded in food items particularly fish, vegetables, eggs, selected spices, sauces and condiments, cooking oil, and milk and milk products. Increased rental rates, higher electricity charges and upward price adjustments in some items for personal care and effects were also observed in selected regions. All these factors contributed to the 0.7 percent overall month-on-month inflation.
CONSUMER PRICE INDEX
(2006=100)JANUARY 2014
By Region, Year-on-Year
Annual inflation in NCR was registered at 2.7 percent in January from 2.6 percent in December.
AONCR retained its December inflation figure of 4.6 percent. Higher annual rates were noted in seven regions with the biggest jump of 1.3 percentage points posted in Ilocos (5.2% from 3.9%). However, five regions had slower annual rates with CAR, Bicol, Davao and ARMM maintaining their respective last month’s rates. The highest annual rate of 7.8 percent remained in Eastern Visayas while the lowest was in Davao at 3.3 percent.
By Commodity Group, Year-on-Year
On an annual basis, the increment in food and non-alcoholic beverages index in the Philippines advanced to 5.5 percent in January from 4.8 percent in December; clothing and footwear index, 3.4 percent from 3.1 percent; furnishing, household equipment and routine maintenance index, 2.6 percent from 2.4 percent; health index, 3.2 percent from 2.9 percent; and recreation and culture index, 2.5 percent from 2.4 percent. The other commodity groups had slower annual add-ons or retained their last month’s rate.
The national annual inflation for food alone index climbed to 5.7 percent in January from 5.0 percent in December.
All the food groups had higher annual rates except in corn and fruits indices whose annual gains were correspondingly slower at 3.3 percent and 4.2 percent from 3.8 percent and 4.3 percent, respectively.
In NCR, the annual growth in the food and non-alcoholic beverages index was observed at 4.8 percent in January from 3.7 percent in December; clothing and footwear index, 2.5 percent from 2.1 percent; furnishing, household equipment and routine maintenance of the house index, 2.2 percent from 1.7 percent; health index, 3.6 percent from 2.9 percent; communication index, 0.2 percent from 0.1 percent; recreation and culture index, 2.3 percent from 2.0 percent; and restaurant and miscellaneous goods and services index, 0.7 percent from 0.5 percent. The rest of the commodity groups either had slower annual increases or retained their last month’s rate
The food alone index in NCR posted an annual mark-up of 5.1 percent in January from 3.9 percent in December.
The annual growth in the rice index further expanded to 15.0 percent in January from 12.8 percent in December. In addition, a higher annual add-on was seen in the corn index at 9.2 percent from 8.8 percent; meat index, 1.3 percent from 1.2 percent; fish index, 7.0 percent from 1.7 percent; milk, cheese and egg index, 1.6 percent from 1.2 percent; and sugar, jam, honey, chocolate and confectionery index, 0.6 percent from -0.2 percent.
The rest of the food groups had either slower or negative annual rates.
In AONCR, the annual uptick in food and non-alcoholic beverages index further accelerated at 5.6 percent in January from 5.0 percent in December; clothing and footwear index, 3.7 percent from 3.5 percent; housing, water, electricity, gas and other fuels index, 4.4 percent from 4.1 percent; furnishing, household equipment and routine maintenance of the house index, 2.7 percent from 2.5 percent; and health index, 3.1 percent from 2.9 percent. Those for rest of the commodity groups either slowed down or remained at their last month’s rate with the communication index recording an annual decline of 0.1 percent from zero growth.
The food alone index in AONCR moved faster at 5.8 percent in January from 5.1 percent in December.
A higher annual inflation was still recorded in the rice index at 9.4 percent in January from 8.7 percent in December as 13 regions posted faster annual increments. The biggest annual acceleration of 2.1 percentage points was in SOCCSKSARGEN (10.0% from 7.9%).
All the other food groups have higher annual gains except for corn index whose rate decelerated to 3.1 percent from 3.6 percent.
By Region, Month-on-Month
Price increases in NCR remained at its December rate of 0.5 percent. Uptrends were seen in the indices of food and non-alcoholic beverages and tobacco; alcoholic beverages; clothing and footwear; furnishing; household equipment and routine maintenance of the house; health; recreation and culture; and restaurant and miscellaneous goods and services. Those for the other commodity groups were however slower or remained at their last month’s rate with the index for housing, water, electricity, gas and other fuels registering a 0.1 percent drop during the month.
Prices in AONCR climbed at a slower rate of 0.6 percent in January from 0.8 percent in December. Monthly upticks in housing, water, electricity, gas and other fuels index eased to 0.8 percent from 1.5 percent; health index, 0.4 percent from 0.5 percent and transport index, 0.2 percent from 0.3 percent. Those for rest of the commodity groups were either higher or remained at their previous month’s rate.
Price additions in eight regions were slower compared to their December rates. CAR had the lowest month-on-month inflation at 0.2 percent while the highest rate of 1.2 percent was noticed in Ilocos.
Among the three big areas of the country, price increments in consumer items in Luzon and Mindanao were generally slower compared to Visayas.
By Commodity Group, Month-on-Month
Measured from a month ago level, prices of consumer items at the national level moved up by 0.7 percent in January. The heavily-weighted food and non-alcoholic beverages index picked up 0.9 percent in January from 0.8 percent in December; alcoholic beverages and tobacco and furnishing, household equipment and routine maintenance of the house indices, 0.6 percent from 0.4 percent and 0.2 percent, respectively; clothing and footwear and health indices, 0.7 percent from their corresponding last month’s rates of 0.2 percent and 0.5 percent; and recreation and culture index, 0.3 percent from 0.1 percent. From zero growth, the communication index gained 0.1 percent. The other commodity groups either had slower monthly hikes or retained their last month’s rate.
The soaring prices of fish further pushed up the group’s index in the three areas: Philippines, 2.2 percent from 1.1 percent; NCR, 5.1 percent from 1.6 percent; and AONCR, 1.7 percent from 1.0 percent. The continued difficulty in catching fish species during the cold months lowered the volume of supplies of selected fish species in the markets. Contributing to the uptrend was the bigger demand noted as consumers shifted from meat to fish after the holiday season.
The inclement weather condition affected the production of selected vegetables during the month, thereby resulting to lower supplies in the markets. This was further magnified by the bigger demand of consumers as they shifted to vegetables from meat after the holiday feasts. Thus, the vegetables index in the Philippines went up 1.8 percent from 1.3 percent; NCR, 0.4 percent from -1.6 percent; and AONCR, 2.1 percent from 1.8 percent.
Lower production of eggs due to the cold weather conditions limited its supplies in the markets. This factor caused prices of eggs to increase. Prices of milk and milk products were also higher in many regions. Hence, the milk, cheese and egg index in the Philippines and AONCR gained 0.4 percent and in NCR, 0.6 percent.
The food products not elsewhere classified index in the Philippines advanced 1.2 percent; NCR, 0.4 percent; and AONCR, 1.3 percent. It resulted from the price additions in selected spices, sauces, condiments and seasonings.
Price mark-ups in cooking oil raised the oils and fats index in the Philippines by 1.6 percent; NCR, 0.7 percent; and AONCR, 1.8 percent.
The aggregate meat index in AONCR picked up by 0.6 percent from 0.4 percent brought about by higher prices of pork in many regions. Meanwhile, the meat index in NCR climbed at a slower pace of 0.1 percent from 0.2 percent as upward adjustments in the prices of processed meat were offset by the price declines in chicken. The national index inched up 0.5 percent from 0.3 percent.
With six regions having slower monthly price hikes in rice, the increment in the group's index in AONCR slowed to 0.4 percent from 0.9 percent. The negative monthly rates in the group's index in Ilocos (-0.3%) and in Central Luzon (-0.2%) also tempered the growth of the group's index in AONCR. Likewise, increases in the rice index in NCR also improved to 0.9 percent from 2.1 percent and in the Philippines, 0.5 percent from 1.1 percent.
Higher rental rates and increased charges in electricity were noted in selected regions. These were however eased by the price reductions in LPG and kerosene in most of the regions. Thus, the housing water, electricity, gas and other fuels index in the Philippines and AONCR slowed to 0.5 percent and 0.8 percent from 1.3 percent and 1.5 percent, respectively. In NCR, downward price adjustments in LPG and kerosene pulled down its group’s index by 0.1 percent from 0.8 percent.
The index for restaurant and miscellaneous goods and services in the three areas picked up 0.2 percent as prices of some items for personal care and effects went up during the month. Prices of meals eaten outside the home were also higher in some regions.
With price upticks in selected medical products and higher charges in some medical and hospital services in selected regions, the health index in the Philippines grew by 0.7 percent; NCR, 1.9 percent; and AONCR, 0.4 percent.
NOTES:
The survey reports from Sulu were not received as of February 3, 2014.
- 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
