• The year-on-year inflation for the bottom 30% income households in the Philippines slowed down to 3.1 percent in the second quarter from 3.5 percent in the first quarter of 2013. The downtrend was brought about by the slower annual mark-ups in all the commodity groups. The second quarter average inflation a year ago was 2.4 percent.

  • Similarly, inflation in the National Capital Region (NCR) decelerated to 1.9 percent in the second quarter from 2.3 percent in the first quarter of 2013. This was effected by the slower annual increments in all the commodity groups except in food, beverages and tobacco (FBT) index.

  • Annual inflation in Areas Outside the National Capital Region (AONCR) likewise eased to 3.0 percent in the second quarter from 3.5 percent in the previous quarter due to lower annual growths posted in all the commodity groups.

• The country’s quarter-to-quarter inflation for the bottom 30% income households improved to 0.5 percent in the second quarter from 1.0 percent in the first quarter. Tuition fee hikes and higher prices of footwear and wearing apparel were observed during the opening of the classes in June. Increased prices of construction materials and higher wages for carpenters were noted in many regions. These however, were tempered by the price rollbacks in LPG and kerosene together with the lower charges in water rates in NCR. Price reductions in selected food items such as fish, seafood, milk and eggs in NCR were also noted during the quarter.

Year-on-Year Inflation Rates in the Philippines, All Items

First Quarter 2007 - Second Quarter 2013

• By Region, Year-on-Year
  

• Annual inflation in NCR moved up at a slower rate at 1.9 percent in the second quarter from 2.3 percent in first quarter of 2013.

• Likewise, inflation in AONCR eased to 3.0 percent during the second quarter from 3.5 percent in the first quarter. Eleven regions posted slower annual uptick with Central Luzon and ARMM recording the lowest annual rate at 0.6 percent. The highest annual change remained in Central Visayas at 6.4 percent.
  

• By Commodity Group, Year-on-Year

  At the national level, the annual increment in the heavily-weighted FBT index slowed down to 3.5 percent in the second quarter of 2013 from 3.8 percent in the previous quarter; clothing index, 2.4 percent from 2.8 percent; housing and repairs (H&R) index, 3.4 percent from 4.2 percent; fuel, light and water (FLW) index, 0.7 percent from 2.7 percent; services index, 1.6 percent from 2.1 percent; and miscellaneous index, 1.9 percent from 2.2 percent.

  The country’s annual hike in the food alone index settled to 2.5 percent during the second quarter from 3.1 percent in the first quarter of 2013.

  The annual uptick in the rice index decelerated to 0.7 percent in the second quarter from 1.6 percent in the first quarter; corn index, 5.9 percent from 6.1 percent; dairy products index, 1.6 percent from 1.8 percent; eggs index, 1.7 percent from 3.1 percent; fish index, 4.5 percent from 6.9 percent; and miscellaneous foods index, 1.3 percent from 2.2 percent. On the other hand, the annual movement in fruits and vegetables index rose to 4.3 percent from 1.8 percent and meat index, 2.5 percent from 1.6 percent.
  

  • In NCR, annual adjustment in the FLW index further dropped by 2.7 percent in the second quarter from -0.8 percent in the last quarter. In addition, the annual add-ons in clothing, H&R and miscellaneous indices correspondingly slowed to 2.1 percent, 1.5 percent and 1.7 percent from 2.3 percent and services index, 0.4 percent from 0.7 percent. Meanwhile, the FBT index grew 3.2 percent in the second quarter from 3.0 percent in the first quarter.

    The annual change in the food alone index in NCR picked up 2.3 percent in the second quarter from 2.2 percent in the first quarter of 2013.

    A higher annual increase was seen in fruits and vegetables index at 5.6 percent in the second quarter from 2.2 percent in the first quarter; rice index, 1.6 percent from 1.3 percent; cereal preparations index, 3.0 percent from 2.9 percent; and meat index, 2.4 percent from 1.8 percent. The rest of the food groups however posted slower annual mark-ups with the index of miscellaneous foods retaining its last quarter’s rate of 2.7 percent.

  • In AONCR, the annual gain in the FBT index eased to 3.5 percent in the second quarter of 2013 from 3.9 percent in the first quarter; clothing index, 2.4 percent from 2.8 percent; H&R index, 3.4 percent from 4.2 percent; FLW index, 0.8 percent from 2.8 percent; services index, 1.6 percent from 2.0 percent; and miscellaneous index, 1.9 percent from 2.2 percent.

    The annual inflation in the food alone index in AONCR slid to 2.5 percent in the second quarter of 2013 from 3.1 percent in the first quarter.

    The annual increment in the rice index was pegged at 0.7 percent in the second quarter from 1.6 percent in the first quarter. Except in Central Visayas, all the regions have either slower or negative annual rates.

    The annual growth in the fish index decelerated to 4.5 percent in the second quarter of 2013 from 7.0 percent in the first quarter; cereal preparation index, 3.3 percent from 3.7 percent; corn index; 5.9 percent from 6.1 percent; dairy products index, 1.6 percent from 1.8 percent; eggs index, 1.8 percent from 3.2 percent; and miscellaneous foods index, 1.3 percent from 2.1 percent. Meanwhile, annual movement in fruit and vegetables index grew 4.3 percent from 1.8 percent and meat index, 2.5 percent from 1.6 percent.

• By Region, Quarter-to-Quarter

  Compared to a quarter ago level, prices of items for this particular group of consumers in NCR fell by 0.1 percent in the second quarter from 0.2 percent in the first quarter. It resulted from the 1.9 percent decline in the FLW index during the quarter. Moreover, the quarterly add-ons in the H&R and miscellaneous indices slowed to 0.1 percent from their previous quarter’s rates of 0.5 percent and 0.2 percent, respectively. The rest of the commodity groups had higher quarterly gains.

  Price increase in AONCR improved to 0.5 percent in the second quarter from 1.0 percent in the first quarter. The downtrend was due to the 0.4 percent decrease in the FLW index from 0.1 percent. In addition the adjustments in the heavily-weighted FBT index and clothing index at 0.5 percent were slower compared to their previous rates of 1.3 percent and 0.6 percent, respectively.

  Eleven regions registered either slower quarterly mark-ups or negative rates. The lowest quarterly rate of -0.2 percent was observed in Central Luzon and MIMAROPA.

  Among the three big areas of the country, price hikes in consumer items were generally lower in Luzon compared to Visayas and Mindanao.

• By Commodity Group, Quarter-to-Quarter

  On a quarterly basis, price increases at the national level moved slower at 0.5 percent in the second quarter from 1.0 percent in the first quarter of 2013. This was brought about by a 0.4 percent drop in the FLW index during the quarter. The slower quarterly growth in FBT and clothing indices at 0.5 percent from their respective last quarter’s rates of 1.3 percent and 0.6 percent also contributed to the downtrend. The rest of the commodity groups had faster quarterly mark-ups.

  Abundant supplies of selected fish species, shrimps, crabs and shells in the markets were observed during the quarter. This was due to the prevalence of good weather conditions which favored fishermen in their activity. Thus, the fish index in the Philippines and AONCR declined by 0.2 percent and in NCR, -2.0 percent.

  With thirteen regions registering either lower or negative rates, the corn index in the Philippines and AONCR went up at a slower rate of 1.0 percent in the second quarter from 2.5 percent in the first quarter. On the contrary, the corn index in NCR inched up 0.7 percent from a decrease of 0.7 percent during the first quarter.

  The eggs index in NCR went down 1.0 percent during the quarter. On the other hand, the offsetting price movements in eggs observed among the regions resulted to a zero growth in the group’s index in the Philippines and AONCR.

  The index for rice in the Philippines and AONCR went up 0.1 percent in the second quarter from 0.2 percent in the first quarter. Among the regions in AONCR, the highest quarterly growth of 1.7 percent was recorded in Central Visayas while the lowest was in Cagayan Valley and Central Luzon at -0.8 percent. In NCR, movement in the rice index remained at 0.6 percent.

  The dairy products index in the Philippines and AONCR grew 0.3 percent due to higher prices of milk and milk products. On the other hand, the dairy products index in NCR further dropped by 0.8 percent from -0.4 percent as prices of powdered milk in the area continued to go down during the quarter.

  The fruit and vegetable index in the Philippines and AONCR climbed 0.2 percent from their respective last quarter’s rates of -0.1 percent and zero growth. In NCR, the group’s index likewise jumped 1.7 percent from -5.8 percent. This was mainly due to the price hikes in potato, tomato, carrot and native pechay.

  Pork and beef were generally priced higher during the quarter in many regions. Moreover, prices of pork, beef and uncanned preserved meat also went up in NCR. Thus, the meat index in the Philippines and AONCR advanced 1.1 percent from 0.9 percent and NCR, 0.7 percent from 0.2 percent.

  The miscellaneous foods index in the Philippines and AONCR rose 0.3 percent from -1.0 percent and NCR, 0.1 percent from -0.1 percent. This can be attributed to the upsurge in the prices of common spices and seasonings. Higher prices of meals eaten outside the home in most of the regions were also noticed during the quarter.
  

• Higher demand for footwear and wearing apparel during the opening of classes effected at 0.5 percent growth in the clothing index in the Philippines and AONCR and 0.3 percent in NCR.

• Movement in the H&R index was pegged at 0.9 percent in the Philippines and AONCR, and in NCR, 0.1 percent. This was due to the price increments in selected construction materials together with higher salaries of carpenters, plumbers and electricians.

• Tuition fee hikes during the opening of classes in June generally raised the services index in the Philippines and AONCR by 0.6 percent, and in NCR, 0.2 percent. Upward price adjustments in selected school supplies along with the increased salary of household help and higher rates for selected medical services in most of the regions also contributed to the uptrend.

• With higher prices in selected items for household operation and personal effects, the miscellaneous index in the Philippines and AONCR gained 0.5 percent and NCR, 0.1 percent.

• During the quarter, price rollbacks in LPG and kerosene pushed down the FLW index in AONCR and in the Philippines by 0.4 percent. In NCR, lower water rates and price decreases in LPG resulted to the 1.9 percent drop in its group’s index.

Note:

Monthly CPIs for the bottom 30% income households by province and selected cities 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).