JUNE AND MAY 2012

• Tuition fee hikes in all the regions including NCR primarily pushed up the country’s month-on-month inflation to 0.5 percent in June from 0.1 percent in May. Price increments in the heavily-weighted food items such as chicken, pork, fruits, vegetables, eggs, milk, cheese and sugar were also noted. In addition, higher prices of selected school supplies, clothing, footwear and household items and increased salary of household helper contributed to the uptrend.

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  CONSUMER PRICE INDEX
  (2006=100)
  JUNE 2012

By Region, Year-on-Year

• The annual inflation in NCR remained its May rate of 2.2 percent.

• In AONCR, annual inflation further eased to 3.0 percent in June from 3.1 percent in May as seven regions posted slower annual rates. The biggest slowdown of 0.6 percentage point was observed in Central Luzon (3.7% from 4.3%). The lowest rate at 1.4 percent remained in Ilocos region while the highest rate at 5.3 percent was in Central Visayas.

By Commodity Group, Year-on-Year

• At the national level, annual inflation in alcoholic beverages and tobacco index improved to 4.8 percent in June from 5.2 percent in May; housing, water, electricity, gas, and other fuels index, 4.2 percent from 4.5 percent; transport index, 1.3 percent from 2.2 percent; and recreation and culture index, 2.4 percent from 2.8 percent. The annual movements for the rest of the commodity groups were either faster or remained at their previous month’s rate.

  The annual inflation of the food alone index in the Philippines picked up to 2.0 percent in June from 1.7 percent in May.

  The corn index recorded a higher annual growth of 5.5 percent in June from 4.5 percent in May; milk, cheese and egg index, 3.3 percent from 3.1 percent; fruits index, 7.2 percent from 7.0 percent; and vegetables index, 1.2 percent from -0.6 percent. However, the annual adjustments in all the other food groups were either slower or negative during the month.

• In NCR, the alcoholic beverages and tobacco index went up at a faster rate of 3.4 percent in June from 2.9 percent in May; clothing and footwear index, 7.6 percent from 6.8 percent; furnishing, household equipment and routine maintenance of the house index, 2.5 percent from 1.4 percent; health index, 3.1 percent from 3.0 percent; communication index, 0.5 percent from 0.4 percent; recreation and culture index, 4.0 percent from 3.3 percent; and restaurant and miscellaneous goods and services index, 3.4 percent from 3.3 percent. The annual gains for the rest of the commodity groups were slower with the transport index registering a -0.7 percent annual decrease from zero growth last month.

  • The annual add-on for food alone index in NCR improved to 0.8 percent in June from 1.1 percent in May.

  • Negative annual adjustment were continuously noted in the rice index at -3.9 percent in June from -4.2 percent in May; oils and fats index, -3.8 percent from -1.1 percent; and sugar, jam, honey, chocolate and confectionery index, -13.7 percent from -17.3 percent. Slower annual hikes were also seen in all the other food groups except in the milk, cheese and egg index whose annual change was higher at 4.0 percent from 3.2 percent.

• In AONCR, the annual uptick in alcoholic beverages and tobacco index eased to 5.1 percent in June from 5.6 percent in May; housing, water, electricity, gas and other fuels index, 4.8 percent from 5.1 percent; and transport and recreation and culture indices, 1.9 percent from 2.8 percent and 2.6 percent, respectively. An annual decline of -0.1 percent was still observed in the communication index while the annual changes of the rest of the commodity groups either went up or remained at their respective last month’s rate.

  • The annual increase of the food alone index in AONCR was pegged at 2.2 percent in June from 1.9 percent in May.

  • The annual change in the corn index picked up to 5.5 percent in June from 4.3 percent in May; fruits index, 7.7 percent from 7.1 percent; and vegetables index, 1.2 percent from -1.1 percent.

  • Annual growth for the rice index remained at 0.3 percent for three consecutive months due to the mixed annual price movements among the regions. Higher annual adjustments were noticed in seven regions while nine regions posted either slower annual upticks or negative rates. The biggest increment of 1.1 percentage points was seen in Ilocos region (0.7% from -0.4%).

  • Slower and negative annual rates were recorded in the rest of the food groups.

By Region, Month-on-Month

By Commodity Group, Month-on-Month

• The month-on-month inflation in the Philippines climbed 0.5 percent in June from 0.1 percent in May as food and non-alcoholic beverages index grew by 0.4 percent from zero percent. The indices for housing, water, electricity, gas, and other fuels and furnishing, household equipment and routine maintenance of the house also went up 0.6 percent from -0.1 percent and 0.4 percent, respectively and education index, 4.3 percent from zero growth. The rest of the commodity groups registered either slower monthly gains or retained their respective last month’s rate except in the transport index whose rate further dropped by -0.9 percent from -0.4 percent.

  • Upward adjustments in the prices of vegetables particularly garlic, onion, carrot, and radish in many regions including NCR raised the group’s index in the three areas during the month: Philippines, 1.9 percent from -0.8 percent; NCR, 3.0 percent from 0.1 percent; and AONCR, 1.7 percent from -1.0 percent.

  • With thirteen regions posting price increases in rice, the group’s index in AONCR inched up 0.3 percent and in the Philippines, 0.2 percent during the month. The biggest jump of 1.2 percent was observed in MIMAROPA. On the contrary, the rice index in NCR declined -0.1 percent.

  • Increments in the prices of tin can used in packing milk primarily pushed up prices of milk in most of the regions including NCR. Moreover, eggs and cheese were also priced higher in NCR and in many regions. Thus, the index for milk, cheese and egg in the Philippines went up 0.4 percent; NCR, 0.9 percent; and AONCR, 0.2 percent.

  • The meat index in the Philippines and AONCR rose 0.2 percent and in NCR, 0.3 percent. It resulted from higher prices of chicken and pork in selected regions including NCR during the month.

  • Prices of sugar were continuously higher in NCR and in selected regions. Thus, the index for sugar, jam, honey, chocolate and confectionery gained 2.2 percent in NCR; 0.8 percent in AONCR and 1.0 percent at the national level.

  • Lower price adjustments in common spices and seasonings pushed down the index for food products not elsewhere classified index in three areas: Philippines (-0.6% from 0.8%), NCR (-1.2% from 0.7%) and AONCR (-0.5% from 1.1%).

• The education index in the Philippines accelerated by 4.3 percent; NCR, 3.3 percent; and AONCR, 4.6 percent due to tuition fee hikes in June, the beginning of the school year.

• Increased rental rates and higher charges for electricity rates were noted in some regions including NCR. Hence, the index for housing, water, electricity, gas and other fuels in the Philippines moved up 0.6 percent from -0.1 percent; NCR, 1.0 percent from -0.6 percent; and AONCR, 0.4 percent from 0.1 percent. Higher prices of selected construction materials together with the upward adjustments in the services paid to carpenters, electricians, plumbers and painters in NCR and in some regions also contributed to the uptrend.

• With price increments in selected items for personal care and effects observed in some regions and in NCR, the index for restaurant and miscellaneous goods and services in the Philippines rose 0.2 percent; NCR, 0.1 percent; and AONCR, 0.3 percent. Prices of meals eaten outside the home also went up in selected regions.

• Upticks in the prices of some glassware and household items along with higher salary for household helper in NCR and in a few regions raised the index for furnishing, household equipment and routine maintenance of the house in the Philippines by 0.6 percent; NCR, 1.1 percent; and AONCR, 0.4 percent.

• Clothing and footwear items were priced higher during the month as demand increased due to the opening of school year. Thus, the group’s index for clothing and footwear went up in the three areas: Philippines, 0.5 percent; NCR, 0.8 percent; and AONCR, 0.4 percent.

• The index for recreation and culture in NCR climbed 0.7 percent; AONCR, 0.2 percent and at the national level, 0.3 percent. This was effected by the price gains in school supplies, textbooks, newspapers and magazines.

• The series of nationwide price reductions in petroleum products particularly gasoline and diesel resulted to the -0.9 percent drop in index for transport for the Philippines; -1.1 percent in NCR; and -0.9 percent in AONCR.

NOTE:

1. The second phase survey reports from Misamis Occidental and Sulu were not received as of July 5, 2012.

2. 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: July 5, 2012