DECEMBER AND NOVEMBER 2012

The Philippines’ annual headline inflation rate inched up to 2.9 percent in December from 2.8 percent in November. This was effected by higher annual rates in the food and non-alcoholic beverages and alcoholic beverages and tobacco indices. Inflation a year ago was 4.2 percent.

The annual average headline inflation rate in the Philippines for the year 2012 went down to 3.2 percent from 4.6 percent in 2011.

Excluding selected food and energy items, core inflation eased to 3.3 percent in December from 3.4 percent in November. The annual average core inflation rate slowed to 3.7 percent in 2012 from 4.3 percent in 2011.

Annual inflation in the National Capital Region (NCR) rose to 2.8 percent in December from 2.6 percent in November. Higher annual growths were posted in the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; health; communication; and recreation and culture. The annual average inflation in the area declined to 2.9 percent in 2012 from 4.0 percent in 2011.

In Areas Outside NCR (AONCR), annual inflation was pegged at 2.9 percent in December, the same rate in November. The indices of clothing and footwear; health; communication; education; and restaurant and miscellaneous goods and services retained their last month’s rate. The average inflation for 2012 dropped to 3.2 percent from 4.9 percent in 2011.

Year-on-Year Inflation Rates in the Philippines, All Items January 2007 - December 2012 (2006=100)
Month	Year
	2007	2008	2009	2010	2011	2012
January	3.8	4.6	7.1	3.9	4.0	4.0
February	2.9	5.1	7.2	3.9	4.7	2.7
March	2.6	5.8	6.7	3.9	4.9	2.6
April	2.6	7.3	5.6	4.0	4.7	3.0
May	2.7	8.2	4.3	3.9	4.9	2.9
June	2.6	9.4	3.2	3.6	5.2	2.8
July	2.9	10.2	2.2	3.8	4.9	3.2
August	2.7	10.5	1.7	4.1	4.6	3.8
September	2.9	10.1	2.3	3.8	4.7	3.6
October	2.9	9.7	2.9	3.3	5.2	3.1
November	3.1	9.1	3.5	3.7	4.7	2.8
December	3.7	7.8	4.4	3.6	4.2	2.9
Average	2.9	8.3	4.1	3.9	4.6	3.2

• Consumer prices moved by -0.1 percent in December from 0.1 percent growth in November. This was due to the decreases in the prices of food items such as vegetables, cooking oil and sugar. Lower charges in electricity rates and price roll backs in LPG and kerosene in selected regions were also noted during the month.

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  CONSUMER PRICE INDEX
  (2006=100)
  DECEMBER 2012

By Region, Year-on-Year

• Inflation in NCR increased to 2.8 percent in December from 2.6 percent in November.

• Annual inflation in AONCR remained at its previous month’s rate of 2.9 percent. Higher annual mark-ups were posted in four regions while slowdowns were recorded in nine regions. The highest annual rate of 6.7 percent was still observed in Central Visayas while the lowest was still in Ilocos at 0.3 percent.

• In 2012, among the regions in AONCR, the highest annual average inflation at 5.1 percent was posted in Central Visayas while Ilocos had the lowest average annual inflation at 1.6 percent.

By Commodity Group, Year-on-Year

• The annual adjustment in the heavily-weighted food and non-alcoholic beverages index at the national level rose 2.3 percent in December from 2.2 percent in November and alcoholic beverages and tobacco index, 5.1 percent from 5.0 percent. Meanwhile, the annual hike in clothing and footwear index slowed down to 4.9 percent from 5.0 percent; housing, water, electricity, gas, and other fuels index, 3.6 percent from 3.7 percent; and transport index, 1.2 percent from 1.4 percent. The rest of the commodity groups retained their last month’s rate.

  The annual growth in the food alone index in the Philippines grew by 2.2 percent in December from 2.1 percent in November.

  The annual change in the rice index climbed to 1.9 percent in December from 1.6 percent in November; meat index, 1.6 percent from 1.5 percent; fish index, 5.9 percent from 5.8 percent; fruit index, 5.5 percent from 4.9 percent; and food products not elsewhere classified index, 2.8 percent from 2.1 percent. Slower or negative annual rates were however registered in the rest of the food groups.

  The annual average inflation for food alone index dipped to 2.2 percent in 2012 from 5.7 percent in 2011.

  Annual average inflation of food and non-alcoholic beverages index decelerated to 2.3 percent in 2012 from 5.5 percent in 2011; alcoholic beverages and tobacco index, 5.0 percent from 5.3 percent; housing, water, electricity, gas, and other fuels index, 4.6 percent from 5.2 percent; health index, 3.1 percent from 3.2 percent; transport index, 2.3 percent from 6.0 percent; and education index, 4.6 percent from 4.7 percent. On the other hand, that for clothing and footwear index was higher at 4.6 percent from 3.7 percent; furnishing, household equipment and routine maintenance of the house index, 3.7 percent from 2.5 percent; communication index, 0.1 percent from -0.2 percent; recreation and culture index, 2.6 percent from 1.4 percent; and restaurant and miscellaneous goods and services index, 3.2 percent from 2.8 percent.

• In NCR, a higher annual uptick was seen in food and non-alcoholic beverages index at 2.1 percent in December from 1.6 percent in November; alcoholic beverages and tobacco index, 6.4 percent from 6.0 percent; housing, water, electricity, gas, and other fuels index, 2.6 percent from 2.5 percent; health index, 2.9 percent from 2.8 percent; communication index, 0.9 percent from 0.8 percent; and recreation and culture index, 4.9 percent from 4.8 percent. The other commodity groups either recorded slower annual rate or retained their last month’s rate.

  • The annual change in the food alone index in NCR picked up by 1.9 percent in December from 1.4 percent in November.

  • The annual rate in rice index was higher at 1.0 percent in December from 0.7 percent in November; fruit index, 3.7 percent from 2.8 percent; sugar, jam, honey, chocolate and confectionery index, 4.3 percent from 2.5 percent; and food products not elsewhere classified index, 3.6 percent from 1.5 percent. Meanwhile, negative annual rate was still registered in oils and fats index at -7.3 percent from -7.7 percent and vegetables index, -5.7 percent from -9.2 percent. The rest of the food groups had slower annual upticks or retained their last month’s rate.

  • The annual average inflation for food alone index in the area improved to 1.7 percent in 2012 from 4.9 percent in 2011.

  • A slower annual average inflation was seen in food and non-alcoholic beverages index at 1.8 percent in 2012 from 4.6 percent in 2011; housing, water, electricity, gas and other fuels index, 3.7 percent from 4.3 percent; health index, 2.7 percent from 3.6 percent; transport index, 1.0 percent from 6.1 percent; and education index, 3.4 percent from 3.8 percent. That for alcoholic beverages and tobacco index was however higher at 3.9 percent from 2.8 percent; clothing and footwear index, 6.2 percent from 3.3 percent; furnishing, household equipment and routine maintenance of the house index, 3.2 percent from 1.2 percent; communication index, 0.3 percent from -0.4 percent; recreation and culture index, 3.9 percent from 0.6 percent; and restaurant and miscellaneous goods and services index, 3.7 percent from 3.1 percent.

• In AONCR, the annual inflation for food and non-alcoholic beverages index went up 2.4 percent in December from 2.3 percent in November and alcoholic beverages and tobacco index, 4.9 percent from 4.8 percent. Meanwhile, four commodity groups recorded slower annual mark-ups while the rest retained their previous month’s rate.

  • The annual adjustment for food alone index in AONCR picked up 2.3 percent in December from 2.2 percent in November.

  • Annual rate in rice index gained 2.0 percent in December from 1.8 percent in November as seven regions had higher annual upticks.

  • A faster annual rate was also observed in meat index at 1.3 percent from 1.1 percent; fish index, 6.3 percent from 6.0 percent; fruit index, 5.9 percent from 5.5 percent; and food products not elsewhere classified index, 2.7 percent from 2.2 percent. The rest of the food groups registered either slower annual increases or negative annual changes.

  • The annual average inflation rate of the food alone group decelerated to 2.3 percent in 2012 from 5.9 percent in 2011.

  • The annual average hike in food and non-alcoholic beverages index slowed down to 2.5 percent in 2012 from 5.6 percent in 2011; alcoholic beverages and tobacco index, 5.1 percent from 5.8 percent; housing, water, electricity, gas and other fuels index, 4.9 percent from 5.5 percent; transport index, 2.7 percent from 6.0 percent; and education index, 4.9 percent from 5.0 percent. On the other hand, the annual average growth in clothing and footwear index grew by 4.2 percent from 3.8 percent; furnishing, household equipment and routine maintenance of the house index, 3.9 percent from 3.0 percent; recreation and culture index, 2.2 percent from 1.7 percent; and restaurant and miscellaneous goods and services index, 3.0 percent from 2.8 percent. While the health index retained its last year’s annual average rate of 3.1 percent, the communication index had a zero growth from -0.2 percent.

By Region, Month-on-Month

By Commodity Group, Month-on-Month

• Consumer prices at the national level generally declined by 0.1 percent in December from 0.1 percent in November. This was triggered by the 0.3 percent decrease in the index for housing, water, electricity, gas and other fuels. In addition, the monthly gain in alcoholic beverages and tobacco index decelerated to 0.3 percent from 0.4 percent and clothing and footwear and health indices, 0.1 percent from 0.2 percent. On the other hand, that for furnishing, household equipment and routine maintenance of the house index climbed by 0.2 percent from 0.1 percent while recreation and culture index retained its last month’s rate of 0.1 percent. The rest of the commodity groups had zero growth.

  • Increased supplies of vegetables in the markets continued to push down their prices during the month. All the regions posted negative rates in vegetables index except Eastern Visayas, Davao, SOCCSKSARGEN, Caraga and ARMM. Thus, the group’s index in the three areas continued to drop: Philippines, -2.6 percent from -2.3 percent; NCR, -1.6 percent from -6.0 percent; and AONCR, -2.8 percent from -1.6 percent.

  • Downward price adjustments in sugar were still experienced in all the regions. This further pushed down the index for sugar, jam, honey, chocolate and confectionery in the Philippines by 1.9 percent from -0.9 percent; NCR, -0.2 percent from 0.3 growth; and AONCR, -2.2 percent from -1.0 percent.

  • The month-on-month adjustment in the index for oils and fats continued to be on the downtrend as cheaper prices of cooking oil were still observed in all the regions. Hence, the group’s index dropped in the Philippines by 1.1 percent, in NCR by 0.1 percent and in AONCR by 1.3 percent.

  • The index for milk, cheese and egg in the three areas moved upward by 0.1 percent during the month due to price mark-ups in eggs, milk and milk products noted in selected regions.

  • With corn being priced higher in Visayas and Mindanao regions, the group’s index in the Philippines and AONCR gained 0.9 percent. On the contrary, prices of corn continued to remain stable in NCR as its index still had a zero growth during the month.

  • Prices of selected spices, condiments and seasonings continued to go up during the month thereby pushing the index for food products not elsewhere classified by 0.6 percent in the Philippines; 1.4 percent in NCR; and 0.5 percent in AONCR. These were however slower than their corresponding last month’s rates of 0.8 percent, 1.6 percent and 0.6 percent.

  • Price increments in beef, chicken and pork products during the holiday season were noted in many regions. The meat indices in the Philippines and NCR rose 0.2 percent and AONCR, 0.3 percent.

  • Higher demand for fish products resulted to price hikes particularly on fresh fishes, shrimps, crabs, shells and mollusks. The difficulty in catching fish species due to bad weather condition brought by typhoon “Pablo” also limited the volume of fish supply in the markets. Thus, the group’s index in the Philippines grew by 1.0 percent; NCR, 2.3 percent; and AONCR, 0.7 percent.

  • Bigger demand for fruits during the holiday season raised its group’s index in the Philippines by 0.7 percent; NCR, 1.1 percent; and AONCR, 0.6 percent.

  • In general, there was a sufficient supply of rice in many of the markets. Eight regions posted negative rates in the rice index while six regions have positive rates, resulting to a zero growth in AONCR. Among the regions, Central Visayas posted the biggest decline in the rice index at -0.7 percent while the highest rate of 0.5 percent was seen in Davao. In NCR, the group’s index however inched up 0.1 percent. At the national level, the rice index recorded a zero growth.

• Lower charges for electricity rates and price reductions in LPG and kerosene in selected regions resulted to negative rates in the housing, water, electricity, gas and other fuels index in the three areas: Philippines, -0.3 percent; NCR, -0.6 percent; and AONCR, -0.2 percent.

• The index for alcoholic beverages and tobacco in the Philippines and AONCR gained 0.3 percent and in NCR, 0.4 percent as prices of alcoholic beverages and cigarettes went up during the month.

• Higher demand for selected ready-made apparel and footwear during the holiday season pushed up the clothing and footwear index in the Philippines by 0.1 percent and AONCR, 0.2 percent. In NCR, the group’s index had a zero growth as prices of footwear items were stable during the month.

• The transport index in NCR decreased by 0.2 percent due to price rollbacks in auto gas LPG, gasoline and diesel. On the other hand, price add-ons in spare parts and tires for personal transport equipment in selected regions raised the transport index in AONCR by 0.1 percent. These mixed price movements resulted to a zero growth in the group’s national index.

NOTE:

1. 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