MAY AND APRIL 2012

• The series of price rollbacks in LPG, kerosene, gasoline and diesel in most of the regions including NCR resulted to a slower national monthly price increment in consumer items at 0.1 percent in May from 0.8 percent in April. Except for the indices of food and non-alcoholic beverages; education; and restaurant and miscellaneous goods and services, the monthly increases in all the commodity groups either decelerated or were negative during the period. The offsetting price movements among the food groups resulted to a zero growth in the food and non-alcoholic beverages and tobacco index at the national level.

  ---

  CONSUMER PRICE INDEX
  (2006=100)
  MAY 2012

By Region, Year-on-Year

• The annual inflation in NCR moved up at a slower pace at 2.2 percent in May from 2.5 percent in April.

• In AONCR, the annual inflation improved to 3.1 percent in May from 3.2 percent in April. Slowdowns in the annual rates were posted in nine regions with the biggest decrease of 1.1 percentage points noted in ARMM (2.5% from 3.6%). The lowest rate at 1.1 percent was still observed in Ilocos region while the highest rate at 4.5 percent was still seen in Caraga.

By Commodity Group, Year-on-Year

• Inflation in housing, water, electricity, gas, and other fuels index was slower at 4.5 percent in May from 4.7 percent in April; health index, 3.2 percent from 3.3 percent; transport index, 2.2 percent from 3.2 percent; and education index, 4.6 percent from 4.7 percent. Higher annual changes were however registered in the rest of the commodity groups with the annual movement in the heavily-weighted food and non-alcoholic beverages index remaining at 1.8 percent.

  The food alone index at the national level retained its April growth of 1.7 percent.

  Higher annual increases were correspondingly posted in the indices for fruits and food products not elsewhere classified at 7.0 percent and 3.3 percent from their respective April rates of 6.9 percent and 2.9 percent. On the other hand, the annual movements in all the other food groups were either slower or negative during the period.

• In NCR, the annual gain in housing, water, electricity, gas, and other fuels index continued to decelerate at 2.9 percent in May from 3.5 percent in April and restaurant and miscellaneous goods and services index, 3.3 percent from 3.8 percent. The transport index had a zero annual growth from 1.0 percent while the rest of the commodity groups either posted higher annual add-ons or retained their respective previous month's rate.

  • The annual change for food alone index in NCR inched up by 1.1 percent in May from 0.9 percent in April.

  • The annual hike in the corn index was faster at 9.1 percent in May from 6.2 percent in April; meat index, 1.1 percent from 0.6 percent; fish index, 6.0 percent from 5.6 percent; and milk, cheese and egg index, 3.2 percent from 3.0 percent. All the other food groups either posted deceleration in their annual increments or recorded annual decreases.

• In AONCR, a slower annual increase was registered in housing, water, electricity, gas and other fuels index at 5.1 percent in May from 5.3 percent in April; health index, 3.3 percent from 3.5 percent; transport index, 2.8 percent from 3.7 percent; and education index, 4.9 percent from 5.0 percent. The annual rate in the communication index also declined by -0.1 percent from zero growth. Meanwhile, the annual growths of the rest of the commodity groups either picked up or remained at their respective previous month's rate.

• On an annual basis, the food alone index in AONCR retained its previous month's rate of 1.9 percent.

• Annual adjustments in the indices for fruits and food products not elsewhere classified correspondingly went up to 7.1 percent and 3.7 percent from 7.0 percent and 3.0 percent, respectively.

• The rice index retained its April rate of 0.3 percent. Higher annual growths were seen in five regions while eleven regions recorded either slower annual increments or negative rates. The biggest uptick of 1.4 percentage points was in MIMAROPA (0.8% from -0.6%).

• The rest of the food groups either registered slower or negative annual rates.

By Region, Month-on-Month

By Commodity Group, Month-on-Month

• Consumer prices in the country generally picked up by 0.1 percent in May. This was however slower than the 0.8 percent growth in April. Decreases were noted in the indices for housing, water, electricity, gas and other fuels (-0.1% from 1.3%) and transport (-0.4% from 1.0%). While the index for restaurant and miscellaneous goods and services went up 0.6 percent from 0.5 percent, improved monthly increases were seen in the rest of the commodity groups with the food and non-alcoholic beverages and education indices having zero growth during the period.

  • The weather condition during the month favored fishermen in catching fish. This resulted to ample supply of fish species in the markets. Thus, the fish index in the Philippines and AONCR decreased by -1.0 percent from their respective last month's rates of 1.9 and 2.1 percent and in NCR, -1.2 percent from 0.5 percent.

  • With ten regions posting price declines in vegetables, the group's index in AONCR dropped by -1.0 percent and in the Philippines, -0.8 percent. On the contrary, the vegetables index in NCR inched up by 0.1 percent. Onion and tomato were priced higher during the month due to their low supplies in the NCR markets.

  • Sufficient supplies of locally grown fruits like mango, banana and pineapple generally pushed down their prices in many regions. Thus, the fruits index in AONCR dropped by -0.3 percent and in the Philippines, -0.1 percent. The fruits index in NCR however rose by 0.2 percent but slower than the 0.5 percent growth last month.

  • The meat index in AONCR decreased by -0.2 percent due to the general downward price adjustments in chicken. In NCR, the meat index however gained 0.5 percent as prices of chicken were priced higher during the month. At the national level, the group's index went down by -0.1 percent.

  • Price reductions in cooking oil in selected regions including in NCR pushed down the oils and fats index in the three areas: Philippines and AONCR, -0.1 percent and NCR, -0.3 percent.

  • Higher prices of NFA rice primarily effected a 0.8 percent uptick in the rice index in NCR from -0.5 percent. Likewise, the index for rice in AONCR picked up by 0.2 percent but slower than the 0.3 percent gain last month. This resulted from the mixed price movements among the regions. Ten regions posted positive growth rates while six regions had declines during the period. The biggest increase of 0.9 percent was noted in Central Visayas and SOCCSKSARGEN. Hence, the national index for rice inched up 0.3 percent from 0.2 percent.

  • Upsurge in the prices of sugar advanced the index for sugar, jam, honey, chocolate and confectionery in the three areas: Philippines, 1.8 percent from 1.2 percent; NCR, 0.5 percent from 0.1 percent; and AONCR, 2.0 percent from 1.4 percent.

• The index for restaurant and miscellaneous goods and services in the NCR rose 0.3 percent and in AONCR and in the Philippines, 0.6 percent. This was due to the upward adjustments in the prices of selected items for personal care and effects in many regions including NCR together with the higher prices of meals eaten outside the home in selected regions.

• With the increased prices of clothing and footwear items, the group's index went up in the three areas: Philippines, 0.8 percent; NCR, 1.7 percent; and AONCR, 0.5 percent.

• Higher prices of medicines in many regions including NCR along with the increased charges for medical services in selected regions raised the health index in AONCR and in the Philippines by 0.5 percent and in NCR, 0.3 percent.

• The index for furnishing, household equipment and routine maintenance of the house in three areas climbed 0.4 percent. This was due to the upticks in the prices of selected items for household operation.

• Prices of alcoholic beverages and cigarettes were higher during the month. Thus, the index for alcoholic beverages and tobacco in AONCR and in the Philippines inched up by 0.5 percent and in NCR, 0.3 percent.

• Lower charges for electricity rates and the series of downward price adjustments on LPG and kerosene in NCR pushed down the index for housing, water, electricity, gas, and other fuels in the area by -0.6 percent from 0.4 percent. However, the series of price reductions in LPG and kerosene in most of the regions were offsetted by higher charges for electricity rates and price hikes in firewood and charcoal in selected regions. Hence, the group's index in AONCR gained 0.1 percent, a slowdown from 1.7 percent in April. In the Philippines, the group's index dropped by -0.1 percent from 1.3 percent.

• The transport index in the Philippine declined by -0.4 percent; NCR, -0.8 percent; and AONCR, -0.2 percent. This was mainly caused by the series of price rollbacks in gasoline and diesel in most of the regions including NCR.

NOTE:

1. CORE INFLATION*

The headline inflation is calculated as the year-on-year change in the overall CPI. On the other hand, core inflation measure in defined as the rate of change of headline CPI after excluding selected food and energy items. It is a measure of the broad or underlying trend or movement in the average consumer prices. Core inflation excludes certain items in the overall CPI index whose underlying price movements are generally characterized by short-term volatile movements.

The Bangko Sentral ng Pilipinas (BSP) conducted a study on the commodities to be excluded in the computation of core inflation in the Philippines. The results were reviewed and approved by the Technical Committee on Price Statistics (TCPS) and by the Executive Board of the National Statistical Coordination Board (NSCB). Members of the TCPS are the National Statistics Office, the NSCB, the National Economic Development Authority, the Statistical Research and Training Center, the National Wage and Productivity Commission, the Department of Trade and Industry, the BSP and a representative from the private sector.

The following commodity groups and their corresponding CPI weights are excluded for the computation of the core inflation using the 2006 as the base year:

(a) Rice (8.9 percent)

(b) Corn (0.7 percent)

(c) Fresh meat, chilled or frozen (4.9 percent)

(d) Fresh fruit (1.5 percent)

(e) Fresh or dried vegetables cultivated for their fruit (1.2 percent)

(f) Fresh or dried vegetables cultivated for their roots (0.6 percent)

(g) Natural gas, liquified or in the gaseous state (1.5 percent)

(h) Gas oils for motor vehicles (0.7 percent)

Together, the above excluded items account for 20.0 percent of the 2006-based CPI.

2. The first and second phase survey reports from Basilan were not received as of June 4, 2012:

3. 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: June 5, 2012