PREVIOUS RELEASE

The Consumer Price Index in the Philippines (2006=100) : 2013 Annual Report

Reference Number: 2014-023
Release Date: 26 April 2014

 

  • The country’s annual average inflation in 2013 slowed down

The annual average consumer price index (CPI) in 2013 was pegged at 134.0 for the Philippines, 126.4 for the National Capital Region (NCR) and 136.3 for areas outside NCR (AONCR).

Annual average inflation at the national level eased to 3.0 percent in 2013 from 3.2 percent in 2012. Slower annual average gains were recorded in all the commodity groups except in the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; and communication. The lowest annual average inflation during the year was posted in August at 2.1 percent while the highest rate was in December at 4.1 percent.

 

 

  • Mixed annual price movements were observed among the regions

The annual average inflation rate in NCR slowed to 1.6 percent in 2013 from 2.9 percent in 2012.

On the other hand, the annual average inflation in AONCR moved up at a faster pace of 3.3 percent in 2013 from 3.2 percent in 2012.

Nine regions in AONCR registered higher annual average growth rates with Region IX (Zamboanga Peninsula) posting the biggest increase of 1.6 percentage points (4.3% from 2.7%) followed by Region VIII (Eastern Visayas) at 1.3 percentage points (4.3% from 3.0%). The highest annual average inflation remained in Region VII (Central Visayas) at 4.7 percent while the lowest was still noted in Region I (Ilocos) at 2.3 percent.

 

By Commodity Group

 

  • Year-on-year increase in housing, water, electricity, gas, and other fuels group had the biggest slowdown among the commodity groups

          Compared to a year ago level, the annual average mark-up in housing, water, electricity, gas and other fuels index in the Philippines decelerated by 2.9 percentage points to 1.7 percent in 2013 from 4.6 percent in 2012. Similarly, the annual average inflation of clothing and footwear index improved to 3.6 percent from 4.6 percent; furnishing, household equipment and routine maintenance of the house index, 3.3 percent from 3.7 percent; health index, 3.0 percent from 3.2 percent; transport index, 0.6 percent from 2.3 percent; recreation and culture index, 2.3 percent from 2.6 percent; education index, 4.5 percent from 4.6 percent; and restaurant and miscellaneous goods and services index, 2.4 percent from 3.2 percent. A double-digit annual average inflation was however noted in alcoholic beverages and tobacco index at 29.8 percent in 2013 from 5.0 percent in 2012. The heavily-weighted food and non-alcoholic beverages index likewise went up 2.8 percent from 2.4 percent and communication index, 0.2 percent from 0.1 percent.

          In NCR, the annual average hike in clothing and footwear index slowed down to 3.7 percent in 2013 from 6.2 percent in 2012; housing, water, electricity, gas, and other fuels index, 0.3 percent from 3.7 percent; communication index, 0.2 percent from 0.3 percent; recreation and culture index, 2.3 percent from 3.9 percent; and restaurant and miscellaneous goods and services index, 0.7 percent from 3.7 percent. Meanwhile, the rest of the commodity groups registered higher annual increments with the transport index recording a 0.2 percent annual decrease during the year from 1.0 percent growth in 2012.

 

          The annual average increase in clothing and footwear index in AONCR decelerated to 3.6 percent in 2013 from 4.2 percent in 2012; housing, water, electricity, gas, and other fuels index, 2.3 percent from 4.9 percent; furnishing, household equipment and routine maintenance of the house and health indices, 3.0 percent from 3.9 percent and 3.3 percent respectively; transport index, 0.9 percent from 2.7 percent; and education index, 4.7 percent from 4.9 percent. On the other hand, the index for alcoholic beverages and tobacco index posted a double-digit annual average growth at 32.3 percent from 5.1 percent. The rest of the commodity groups either registered higher annual increments or retained their previous year’s rate.

 

  • Faster annual hikes were generally observed in food prices in 2013

          The annual average mark-ups in food and non-alcoholic beverages index in 2013 were higher in 10 regions with the highest annual average rate posted in Region VII (Central Visayas) at 5.0 percent. Meanwhile, Region IV-A (CALABARZON) had the lowest rate at 1.9 percent.

          The general upward adjustments in the prices of rice pushed the annual average change of the rice index in the Philippines to 4.1 percent in 2013 from 0.9 percent in 2012 and in AONCR, 4.0 percent from 1.2 percent. The highest annual average uptick was noted in Region V (Bicol) and Region X (Northern Mindanao) at 6.1 percent while the lowest was in Region XI (Davao) at 1.7 percent. In NCR, the index likewise picked up 4.9 percent from -1.5 percent.

          The effect of typhoon “Pablo” during the month of January particularly those in Mindanao regions reduced the volume of corn supplies in the affected areas. Moreover, lower production of corn during the rainy season limited its supplies in the markets in many regions. These factors contributed to the annual average growths of corn indices in AONCR and in the Philippines at 4.4 percent and 4.5 percent in 2013. These were however, slower than their corresponding annual average inflation in 2012 at 6.2 percent and 6.0 percent. The lowest annual average inflation was in Region III (Central Luzon) and Region IV-A (CALABARZON) at -6.6 percent while the highest was in Region I (Ilocos) and Region VII (Central Visayas) at 9.3 percent. Meanwhile, the annual average inflation of the corn index in NCR rose to 3.2 percent from 2.9 percent.

          The meat index in the Philippines advanced 2.0 percent in 2013 from 1.4 percent in 2012; NCR, 1.8 percent from 1.6 percent; and AONCR, 2.2 percent from 1.3 percent. Increments in the prices of fresh meat such as pork, chicken and beef and selected processed meat products were due to the increased prices in animal feeds and higher demand of meat during the campaign and election period in May.

          The prevalence of good weather conditions favored fishermen in catching fish particularly during the months of March, April and May. It brought abundant supplies of fish in the markets. The crisis in Zamboanga along with the oil spill in Cebu in September lowered the demand for fish in these areas. These factors contributed to the slowdown in the annual average increment of the fish index in the Philippines at 3.1 percent in 2013 compared to 6.6 percent in 2012; NCR, 1.3 percent from 4.8 percent; and AONCR, 3.5 percent from 6.9 percent. The biggest deceleration of 30.9 percentage points (1.1% from 32.0%) was posted in Caraga.

          Higher prices of milk, cheese and eggs in selected regions raised the annual average growth of the group’s index in the Philippines in 2013 at 2.1 percent; NCR and AONCR at 2.0 percent. These were however, slower than their respective last year’s annual average rates of 3.3 percent, 3.6 percent and 3.2 percent.

          Abundant supplies of fresh fruits like mangoes, banana, papaya and pineapple were generally noted during the year. Thus, the annual average inflation of the fruit index in the Philippines decelerated to 4.6 percent in 2013 from 6.1 percent in 2012; NCR, 3.3 percent from 4.6 percent; and AONCR, 4.9 percent from 6.5 percent. The lowest annual average inflation in the fruit index during the year at 1.7 percent was registered in Region V (Bicol) while the highest annual average growth was observed in Region IX (Zamboanga Peninsula) at 16.2 percent.

          The vegetables index in AONCR accelerated by 2.7 percent in 2013 from a zero growth in 2012. This was brought about by the price hikes in vegetables due to various typhoons that hit the country during the year. The hot weather conditions experienced in May affected production of vegetables and this lowered supplies coming from vegetable-producing provinces in Central and Northern parts of Luzon and in Mindanao areas. The highest annual average change of 7.8 percent was in Region XI (Davao) while the lowest was in Region IV-A (CALABARZON) at 0.6 percent. The group’s index in NCR also moved up but at a slower pace of 0.5 percent from 1.9 percent. At the national level, the vegetables index gained 2.3 percent in 2013 from a growth of 0.4 percent in 2012.

          The upward annual price movements in selected spices, condiments and seasonings generally raised the food products not elsewhere classified index in NCR by 4.2 percent from 1.4 percent and in the Philippines, 2.9 percent from 2.6 percent. The annual average growth of the group’s index in AONCR also picked up 2.7 percent, the same rate in 2012. Among the regions in AONCR, the highest annual average rate of 7.1 percent was recorded in Region X (Northern Mindanao) while the lowest rate at 1.0 percent was seen in Region I (Ilocos).

          The continuous price reductions in cooking oil further pushed down the average annual rates of oils and fats index in the three areas: Philippines, -6.1 percent from -0.9 percent; NCR, -8.5 percent from -1.4 percent; and AONCR,     -5.4 percent from -0.8 percent. The biggest annual drop of 36.1 percentage points (-13.6% from 22.5%) was noticed in Region XII (SOCCSKARGEN).

          Cheaper prices of sugar in most of the regions in AONCR resulted to a 1.0 percent decline in the annual average growth of sugar, jam, honey, chocolate and confectionery index in the area. On the contrary, the group’s index in NCR increased by 2.4 percent due to price upticks in sugar particularly in the first half of the year. This mixed price trends resulted to a 0.6 percent annual average drop in the group’s national index.

          Among the food groups, the highest annual average change during the year was posted in the fruit index at 4.6 percent in the Philippines; 3.3 percent in NCR; and 4.9 percent in AONCR. On the other hand, the lowest annual average inflation was registered in oils and fats index at -6.1 percent in the Philippines;   -8.5 percent in NCR; and -5.4 percent in AONCR.

 

  • Alcoholic beverages and tobacco index posted a double-digit inflation in all the regions.

 

 

          The acceleration in the prices of cigarettes and tobacco after the first tranche of implementation of the sin tax law on these items resulted to double-digit annual average inflation rates in the alcoholic beverages and tobacco index in all the regions. Thus, the group’s index at the national level jumped by 29.8 percent in 2013 from 5.0 percent in 2012; NCR, 16.9 percent from 3.9 percent; and AONCR, 32.3 percent from 5.1 percent. Among the regions in AONCR, the highest annual average increase in the group’s index was in Region IX (Zamboanga Peninsula) at 44.9 percent followed by Region XII (SOCCSKSARGEN) at 42.1 percent. Meanwhile, the lowest annual average inflation of 12.8 percent was in Region XI (Davao).

 

 

 

          Price upticks in selected ready-made apparel and footwear items together with higher charges in sewing services for clothing items effected a 3.6 percent annual average growth in the group’s index in the Philippines and AONCR and in NCR, 3.7 percent. The highest annual average increase in 2013 was in CAR at 5.1 percent while the lowest was in Region XII (SOCCKSARGEN) at 2.2 percent.

 

 

 

          The slower annual increments in rental rates for dwelling and the general downward price adjustments in LPG and kerosene noted in many regions resulted to a deceleration in the annual average growth posted in the index for housing, water, electricity, gas and other fuels in AONCR at 2.3 percent in 2013 from 4.9 percent in 2012; NCR, 0.3 percent from 3.7 percent; and at the national level, 1.7 percent from 4.6 percent. Lower charges in the electricity rates in many regions also contributed to the downtrend.  Among the regions in AONCR, the lowest annual average rate of -0.2 percent was seen in Region IV-B (MIMAROPA) while the highest at 7.1 percent was in Region IX (Zamboanga Peninsula).

 

 

 

          Annual price hikes in selected items for furniture and fixtures together with household appliances were noted in some regions. This resulted to a 3.0 percent annual average growth in furnishings, household equipment and routine maintenance of the house index in AONCR in 2013, slower than its last year’s rate of 3.9 percent. The highest annual average rate of 4.7 percent remained in Region X (Northern Mindanao) while the lowest annual average increase of 1.5 percent was seen in Region I (Ilocos) and Region XII (SOCCSKSARGEN). Meanwhile, the annual average increment of the group’s index in NCR rose 4.2 percent in 2013 from 3.2 percent in 2012 due to higher salary of household help and the upticks in the prices of selected household utensils, articles of cleaning and other non-durable household articles. The annual average change of the group’s index at the national level settled to 3.3 percent from 3.7 percent.

 

 

 

          The annual average inflation of the health index in 2013 increased by 3.0 percent in the Philippines and AONCR due to higher prices of medicines and selected medical products and the increased charges for medical services in some regions. This was however, slower than their corresponding annual growths in 2012 at 3.2 percent and 3.3 percent. The highest annual average inflation of 6.7 percent was observed in Region I (Ilocos) while the lowest was in CAR and Region XI  (Davao) at 1.7 percent. In NCR, the group’s index however moved up at a faster pace of 3.2 percent in 2013 from 2.7 percent in 2012 due to higher prices of medicines and selected medical products and the increased charges in hospital services.

 

 

 

 

          Higher passenger transport fares by air were tempered by the general annual reductions in the prices of gasoline and diesel in many regions. Hence, the annual average inflation of the transport index in AONCR eased to 0.9 percent in 2013 from 2.7 percent in 2012. Region VII (Central Visayas) registered the biggest annual deceleration of 4.8 percentage points (0.2% from 5.0%). Meanwhile, the annual average growth of the group’s index in NCR dropped by 0.2 percent from 1.0 percent due to decreases in the prices of gasoline and diesel. In the Philippines, the annual average gain in the group’s index improved to 0.6 percent from 2.3 percent in 2012.

 

 

 

 

          Charges for prepaid communication services and telephone rates went up in NCR. Thus, the annual average growth of communication index in NCR rose 0.2 percent in 2013, slower than 0.3 percent growth in 2012. On the other hand, the annual average change in communication index in AONCR was 0.2 percent in 2013 from zero growth in 2012 due to general upward adjustments in the charges for postal services related to letters and courier services. The highest annual average rate during the year at 1.9 percent was noted in Region IX (Zamboanga Peninsula) while the lowest -1.1 percent remained in Region XII (SOCCSKARGEN). At the national level, the group’s index gained 0.2 percent in 2013 compared to 0.1 percent in 2012.

 

 

 

 

          The increments in the prices of lotto tickets and in selected school supplies pushed up the annual average inflation in recreation and culture index in the Philippines and NCR by 2.3 percent and in AONCR, 2.2 percent in 2013. The highest annual average growth was in Region III (Central Luzon) at 3.5 percent while the lowest at 0.7 percent was in Region VII (Central Visayas).

 

 

 

 

          The annual average inflation of the education index in 2013 in the Philippines grew by 4.5 percent from 4.6 percent; NCR, 4.0 percent from 3.4 percent; and AONCR, 4.7 percent from 4.9 percent. This was brought about by tuition fee hikes during the year. The highest annual average growth in 2013 at 7.0 percent remained in Region III (Central Luzon) while Region I (Ilocos) and Caraga had the lowest annual average rate at 1.0 percent.

 

 

 

 

          The restaurant and miscellaneous goods and services index in AONCR rose 3.1 percent in 2013 from 3.0 percent in 2012. The uptrend was effected by the price mark-ups in selected items for personal care and effects and increased prices of meals eaten outside the home in most of the regions. The biggest annual average gain of 1.7 percentage points was noticed in CAR (3.4% from 1.7%) and Region IX (Zamboanga Peninsula) (3.5% from 1.8%). On the other hand, the annual average growth of the group’s index in NCR eased to 0.7 percent from 3.7 percent due to slower annual price gain in meals eaten outside the home. At the national level, annual inflation of the group’s index decelerated to 2.4 percent from 3.2 percent.

 

      

 

 

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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).


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