Summary Inflation Report Consumer Price Index (1994=100) : July 2004
JULY AND JUNE 2004
|Year-on-Year Headline Inflation Rates, All Items|
|Year-on-Year Core Inflation Rates, Philippines|
Year-on-year headline inflation rate at the national level picked up by 0.9 percentage point to 6.0 percent in July from 5.1 percent in June. This was mainly brought about by the 10.8 percent increase in the inflation of services. Higher inflation rates recorded in food, beverages and tobacco (FBT), fuel, light and water (FLW) and miscellaneous items also contributed to the uptrend. Inflation a year ago was 3.4 percent.
Likewise, inflation rate in the National Capital Region (NCR) went up by 1.0 percentage point to 6.1 percent in July from 5.1 percent in June.
Inflation rate in Areas Outside the National Capital Region (AONCR) advanced to 6.0 percent in July from 5.1 percent in June due to the higher inflation rates registered in FBT, FLW, services and miscellaneous items.
Excluding selected food and energy items, core inflation accelerated by 0.6 percentage point to 6.0 percent in July from 5.4 percent in June.
|Month-on-Month Inflation Rates, All Items|
Month-on-month inflation rate was recorded at 1.1 percent in July. This was slower than the 1.5 percent growth in June. Increases in the prices of clothing, housing and repairs (H&R), FLW and services items slowed down.
CONSUMER PRICE INDEX
l By Region, Year-on-Year
The inflation rate in NCR moved up to 6.1 percent in July from 5.1 percent in June.
Inflation rate in Areas Outside the National Capital Region (AONCR) rose to 6.0 percent in July from 5.1 percent in June as all the regions still posted higher inflation rates. The biggest increase of 1.6 percentage points was observed in Bicol (7.2 percent from 5.6 percent). The highest rate was still recorded in CAR at 9.3 percent while the lowest rate was still noticed in Cagayan Valley at 4.1 percent.
l By Commodity Group, Year-on-Year
The services group posted a double-digit inflation rate of 10.8 percent in July from 8.1 percent in June. Moreover, inflation rate for FBT accelerated to 6.1 percent from 5.0 percent; FLW, 6.9 percent from 6.0 percent; and miscellaneous items, 2.2 percent from 2.0 percent. On the other hand, inflation rates for clothing and H&R correspondingly decelerated to 2.0 percent and 3.2 percent from 2.1 percent and 3.7 percent, respectively.
Inflation rate for food alone jumped to 6.4 percent in July from 5.2 percent in June.
Annual inflation rates were higher in the prices of rice, 2.4 percent in July from 1.7 percent in June; corn, 11.2 percent from 10.2 percent; cereal preparations, 5.0 percent from 4.6 percent; eggs, 5.1 percent from 4.0 percent; fish, 9.0 percent from 6.7 percent; fruits and vegetables, 5.0 percent from 0.3 percent; and miscellaneous foods, 3.7 percent from 3.2 percent. Meanwhile, movements in the prices of dairy products and meat at 7.0 percent and 15.3 percent, respectively were slower than their corresponding previous month’s rates of 7.3 percent and 15.9 percent.
In NCR, inflation for services further went up to 12.3 percent in July from 10.8 percent in June. Furthermore, inflation for FBT shot up to 6.2 percent from 4.4 percent; FLW, 4.1 percent from 3.7 percent; and miscellaneous items, 2.7 percent from 2.4 percent. On the other hand, inflation rates for clothing and H&R correspondingly slowed to 2.1 percent and 3.1 percent from their respective previous month’s rates of 2.3 percent and 3.3 percent.
The inflation rate for food alone in NCR rose by 1.9 percentage points to 6.5 percent in July from 4.6 percent in June.
Compared to last year, prices of rice gained by only 0.3 percent in July from -0.1 percent in June. Price hikes in cereal preparations accelerated to 5.7 percent from 5.3 percent; eggs, 6.4 percent from 4.4 percent; fish, 12.3 percent from 9.3 percent; fruits and vegetables, 9.5 percent from -3.4 percent; and miscellaneous foods, 2.2 percent from 2.1 percent. On the contrary, slower movements were noticed in the prices of corn, 1.8 percent from 2.6 percent; dairy products, 4.7 percent from 6.3 percent; and meat, 12.5 percent from 14.1 percent.
In AONCR, the annual growth for FBT increased to 6.1 percent in July from 5.2 percent in June and miscellaneous items, 2.0 percent from 1.9 percent. Significant gains were noted in FLW, 8.5 percent from 7.3 percent and services, 10.0 percent from 6.8 percent. Inflation for clothing remained at its last month’s rate of 2.0 percent while inflation for H&R slowed down to 3.2 percent from 3.9 percent.
The inflation rate for food alone in AONCR further picked up to 6.4 percent in July from 5.4 percent in June.
Compared with July 2003, the price of rice went up to 2.7 percent. This was higher than the 1.9 percent growth in June. Higher annual growths were posted in eleven regions with Western Mindanao registering the biggest increase of 2.5 percentage points (3.9 percent from 1.4 percent). This was followed by Ilocos region at 2.4 percentage points (2.3 percent from -0.1 percent).
Except for meat whose price slightly slowed to 16.5 percent in July from 16.6 percent in June, movements in the prices of the rest of the food groups moved up. The price of corn grew by 11.3 percent in July from 10.4 percent in June; cereal preparations, 4.7 percent from 4.3 percent; dairy products, 7.9 percent from 7.7 percent; eggs, 4.6 percent from 3.9 percent; fish, 8.3 percent from 6.2 percent; fruits and vegetables, 3.7 percent from 1.7 percent; and miscellaneous foods, 4.3 percent from 3.7 percent.
l By Region, Month-on-Month
Prices in NCR registered a 0.4 percent increase in July, slower than 1.7 percent in June. Price increments for all the commodity groups improved during the month with prices of H&R items remaining stable as it posted a zero growth from 0.1 percent. Prices of FBT items went up by only 0.1 percent from 0.2 percent; clothing, 0.2 percent from 0.3 percent; FLW, 0.3 percent from 2.7 percent; services, 1.8 percent from 6.6 percent; and miscellaneous items, 0.4 percent from 0.6 percent.
Similarly, prices in AONCR slowed to 1.3 percent in July from 1.5 percent in June. Price increases in clothing items were slower at 0.2 percent from 0.4 percent; H&R items, 0.4 percent from 0.7 percent; FLW items, 1.2 percent from 1.8 percent; and services items, 3.3 percent from 4.1 percent. However, prices of FBT items climbed to 1.2 percent from 1.1 percent while prices of miscellaneous items moved at its previous rate of 0.3 percent. The highest month-on-month inflation rate at 2.2 percent was observed in Ilocos while the lowest rate of 0.7 percent was seen in Western Mindanao.
l By Commodity Group, Month-on-Month
The month-on-month inflation rate slowed to 1.1 percent in July from 1.5 percent in June mainly due to the 2.1 percentage points slowdown in the inflation of services group (2.8 percent from 4.9 percent). In addition, slower rates were observed in the prices of clothing and H&R items at 0.2 percent from their corresponding previous month’s rates of 0.3 percent and 0.5 percent; and FLW items, 0.9 percent from 2.1 percent. On the other hand, prices of FBT items picked up by 1.0 percent from 0.9 percent while price increment in miscellaneous items remained at 0.4 percent.
The price of rice further accelerated in the three areas as the lean season for palay production began: Philippines, 1.4 percent in July from 0.8 percent in June; NCR, 0.3 percent from zero growth; and AONCR, 1.5 percent from 0.9 percent.
Typhoon Igme that hit many areas in the country during the middle of July continued to affect supply of fruits and vegetables in the markets. Prices of fruits and vegetables in AONCR rose by 3.9 percent in July from 2.9 percent in June. However, prices of fruits and vegetables in NCR slightly decreased by 0.1 percent from 4.5 percent. Hence, the national index was up by 2.9 percent from 3.3 percent in June.
The difficulty in catching fish during the rainy season caused prices of fish to climb by 1.0 percent in the Philippines; 1.1 percent in NCR; and 0.9 percent in AONCR.
Upward adjustments in the prices of cooking oil, powdered tonic drink, coffee, margarine, selected spices and seasonings and meals eaten outside the home were still observed in selected regions. These raised the miscellaneous foods index in AONCR by 0.7 percent. The group’s index in NCR posted a zero growth during the month with the national index moving upward by 0.5 percent in July, slightly slower than its previous month’s rate of 0.6 percent.
Sufficient supply of beef, chicken and pork in NCR brought down the meat index in the area by 1.4 percent. However, higher prices of canned and processed meat observed in some regions slightly pushed its index up by 0.2 percent. Overall, the national index dropped by 0.3 percent during the month.
Price add-ons in gasoline, diesel and engine oil in most of the regions including NCR were noticed during the month. Increments in the prices of school supplies and medicines along with the higher charges for hospital, medical, dental and some personal services were also noted. Thus, the services index in the Philippines moved up by 2.8 percent; NCR, 1.8 percent; and AONCR, 3.3 percent. These were however slower than their corresponding previous month’s rates of 4.9 percent, 6.6 percent and 4.1 percent.
The FLW index in the Philippines accelerated by 0.9 percent; NCR, 0.3 percent; and AONCR, 1.2 percent as prices of LPG and kerosene were still up during the month. Price hikes were also registered in firewood and charcoal in some regions.
Increases in the prices of selected construction materials primarily resulted to the 0.2 percent growth in the H&R index in the Philippines and 0.4 percent in AONCR. Meanwhile, prices of H&R items in NCR generally remained stable as the group’s index posted a zero growth.
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.) CARMELITA N. ERICTA
Source: National Statistics Office
Page last updated: August 5, 2004