JUNE AND MAY 2013

• The country’s annual headline inflation picked up to 2.8 percent in June from 2.6 percent in May. This was due to higher annual increments in the indices for alcoholic beverages and tobacco; health; transport; recreation and culture; and education. Inflation in June 2012 was also pegged a t 2.8 percent.

• Excluding selected food and energy items, core annual inflation continued to slow down as it settled to 2.9 percent growth in June from 3.0 percent in May.

   

  • On the other hand, annual inflation in the National Capital Region (NCR) decelerated to 1.6 percent in June from 1.8 percent in May. It was effected by the slower annual rates posted in all the commodity groups except in the indices of transport; communication; recreation and culture; and education.

  • Annual inflation in Areas Outside NCR (AONCR) increased to 3.0 percent in June from 2.9 percent in May. Annual growths in the indices for housing, water, electricity, gas and other fuels; health; transport; and recreation and culture went up during the month.

    

• 6.7

  Year-on-Year Inflation Rates in the Philippines, All Items January 2008 - June 2013 (2006=100)
  Month	Year
  	2008	2009	2010	< strong>2011	2012	2013
  January	4.6	7.1	3.9	4.0	4.0	3.0
  February	5.1	7.2	3.9	4.7	2.7	3.4
  March	5.9	3.9	4.9	2.6	3.2
  April	7.3	5.6	4.0	4.7	3.0	2.6
  May	8.2	4.3	3.9	4.9	2.9	2.6
  June	9.4	3.2	3.6	5.2	2.8	2.8
  July	10.2	2.2	3.7	4.9	3.2
  August	10.5	1.7	4.1	4.6	3.8
  September	10.1	2.3	3.8	4.7	3.6
  October	9.7	2.9	3.3	5.2	3.1
  N ovember	9.1	3.5	3.7	4.7	2.8
  December	7.8	4.4	3.6	4.2	2.9
  Average	8.3	4.2	3.8	4.6	3.2	< /td>

• The opening of classes in June saw a 0.6 percent growth in the prices of consumer items at the national level from 0.1 percent in May. This can be attributed to upward price adjustments in the heavily-weighted food items particularly rice, fish and vegetables together with tuition fee hikes. Also contributing t o the uptrend were higher charges in electricity rates and price gains in LPG and selected construction materials. Lotto tickets, selected school supplies, gasoline and diesel were also priced higher during the month.

  ---

  CONSUMER PRICE INDEX
  (2006=100)

  JUNE 2013

By Region, Year-on-Year

• The annual inflation in NCR eased to 1.6 percent in June from 1.8 percent in May.

• Annual inflation in AONCR however rose 3.0 percent in June from 2.9 percent in May. Ten regions posted higher annual gains with the biggest jump of 0.9 percentage point registered in Central Luzon (2.6% from 1.7%). The highest annual inflation was in Northern Mindanao at 4.3 percent.

By Commodity Group, Year-on-Year

• Compared to June in the previous year, the alcoholic beverages and tobacco index at the national level went up 31.2 percent in June from 31.1 percent in May; health index, 2.8 percent from 2.7 percent; transport index, 0.7 percent from -0.5 percent; recreation and culture index, 2.7 percent from 1.7 percent; and education index, 4.5 percent from 4.4 percent. Meanwhile, annual increases in clothing and footwear and furnishing, household equipment and routine maintenance of house indices were slower at 3.3 percent in June from their respective May rates of 3.5 percent and 3.7 percent together with that f or the index of restaurant and miscellaneous goods and services index at 2.1 percent from 2.3 percent. The rest of the commodity groups retained their last month’s rate.

   

  • Movement in the food alone index in the Philippines remained at 2.4 perc ent in June.

  • The annual growth in the rice index was higher at 1.8 percent in June from 1.5 percent in May; vegetables index, 5.5 percent from 4.8 percent; and food products not elsewhere classified index, 2.7 percent from 2.0 percent. On the other han d, the annual gains in the rest of the food groups decelerated with the oils and fats index continuing to post a negative rate. Annual inflation in fish index remained at 2.6 percent.

   

• In NCR, the heavily-weighted food and non-alcoh olic beverages index recorded a slower annual increase of 2.0 percent in June from 2.1 percent in May; alcoholic beverages and tobacco index, 17.9 percent from 18.2 percent; clothing and footwear index, 3.4 percent from 4.2 percent; housing, water, electricity, gas and other fuels index, 0.2 percent from 0.7 percent; furnishing, household equipment and routine maintenance of the house index, 5.0 percent from 6.2 percent; health index, 2.7 percent from 3.0 percent; and restaurant and miscellaneous goods and services index, 0.8 percent from 0.9 percent. Faster rates were however registered in th e rest of the commodity groups with a zero growth noted in communication index.

  • The annual movement in the food alone index in NCR dipped to 2.0 percent in June from 2.1 percent in May.

  • The oils and fats in dex further dropped by 9.4 percent in June from -8.8 percent in May. Moreover, the annual mark-up in meat index improved to 2.4 percent from 2.7 percent; milk, cheese and egg index, 1.1 percent from 2.2 percent; fruit index, 3.5 percent from 3.7 percent; and sugar, jam, honey, chocolate and confecti onery index, 3.7 percent from 5.8 percent. Higher annual gains were seen in all the other food groups with the corn index retaining its last month’s rate of 0.8 percent.

• The housing, water, electricity, gas and other fuels index in AONCR p osted a higher annual growth of 2.0 percent in June from 1.8 percent in May; health index, 2.8 percent from 2.6 percent; transport index, 0.9 percent from -0.4 percent; and recreation and culture index, 2.8 percent from 1.5 percent. Meanwhile, slower annual add-ons were seen in education and restaur ant and miscellaneous goods and services indices. The rest of the commodity groups moved at their previous month’s rate.

  • The annual uptick in the food alone index in AONCR remained at 2.4 percent in June.

  • The rice index in eight regions recorded faster annual rates. Thus, the group’s index in AONCR climbed 1.8 percent in June from 1.5 percent in May. The biggest acceleration of 1.4 percentage points was seen in Zamboanga Peninsula (2.5% from 1.1%).

  • The annual change in the vegetable index moved up 5.8 percent from 5.1 percent and food products not elsewhere classified index, 2.4 percent from 1.8 percent. The rest of the food groups either registered slower annual increases or annual declines.

By Region, Month-on-Month

• Prices of consumer items in NCR picked up 0.4 percent in June from 0.1 percent in May. The index for housing, water, electricity, gas and other fuels grew by 0.5 percent in June from -0.3 percent in May and recreation and culture index, 0.8 percent from 0.1 percent. Moreover, the indices for transport and education also increased by 0.2 percent and 4.4 percent, respectively from zero growth. The rest of the commodity groups either retained their last month’s rate or have zero growth.

• Similarly, consumer prices in AONCR went up 0.6 percent in June from 0.1 percent in May. Higher monthly increments were noticed in all the commodity groups except for the index of communication which had a zero growth and restaurant and miscellaneous goods and services index whose increase remained at 0.2 percent.

• All the regions except in Ilocos, Northern Mindanao and Caraga recorded higher monthly gains. The highest month-on-month inflation of 0.9 was posted in Central Luzon.

• Among the three big areas of the country, price movements of consumer items in Luzon were faster compared with Visayas and Mindanao.

By Commodity Group, Month-on-Month

• Consumer prices at the national level advanced 0.6 percent in June from 0.1 percent in May. All the commodity groups recorded higher rates except for alcoholic beverages and tobacco index; restaurant and miscellaneous goods and services index; and communication index.

  • Tomatoes generally exhibited price increases during the month. This was triggered by the reductions in its supplies from the production areas in Luzon. Upward price adjustments were also noted in cabbage, carrots, eggplant and radish. Thus, the vegetables index in the Philippines leaped by 2.5 percent from 0.5 percent; NCR, 3.2 percent from 2.0 percent; and AONCR, 2.3 percent from 0.3 percent.

  • The index for rice in the Philippines and AONCR gained 0.6 percent in June from 0.3 percent in May as 10 regions posted higher growths. Among the regions in AONCR, the highest rate of 1.8 percent was seen in Zamboanga Peninsula. In NCR, the increment in group’s index remained at 0.3 percent.

  • The meat index in the Philippines and AONCR inched up 0.1 percent due to price upticks in fresh chicken and pork and processed meat in selected regions. In NCR, the group’s index had a zero growth as higher prices of pork were offsetted by the lower prices of chicken.

  • The offsetting price movements of selected fish species in the regions in AONCR resulted to a zero growth in its group’s index. On the other hand, selected fish species were priced higher in NCR. Thus, the fish index in the area grew by 0.2 percent and in the Philippines, 0.1 percent.

  • Prices of sugar remained higher in NCR and in selected regions. Hence, the index for sugar, jam, honey, chocolate and confectionery went up 0.3 percent at the national level; 0.1 percent in NCR; and 0.4 percent in AONCR.

  • Sufficient supplies of fruits in the markets particularly mangoes, banana, pineapple and papaya pulled down the group’s index in AONCR by 0.3 percent and in the Philippines, -0.2 percent. Meanwhile, the fruit index in NCR rose 0.1 percent due to the general price increases in citrus fruits (ponkan and dalanghita), mangoes, pineapple and watermelon.

• Higher tuition fees recorded during the month, being the opening of the school year, raised the education index in the Philippines and AONCR by 4.5 percent and in NCR, 4.4 percent.

• Mark-ups in electricity rates and in prices of LPG and selected construction materials pushed up the index for housing, water, electricity, gas and other fuels in the Philippines and NCR by 0.5 percent and AONCR, 0.6 percent.

• With the increments in the prices of lotto tickets and selected school supplies, the recreation and culture index picked up by 1.3 percent in the Philippines; 0.8 percent in NCR; and 1.5 percent in AONCR.

• The general upward price adjustments in gasoline and diesel resulted to the 0.2 percent growth in the transport index in the Philippines and NCR and 0.3 percent in AONCR.

NOTES:

CPIs and inflation rates by province and selected city are also available upon request at NSO, Industry and Trade Statistics Department, Economic and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).

(Sgd.) CARMELITA N. ERICTA
Administrator