· For three consecutive months, year-on-year headline inflation rate in the Philippines was registered at 8.5 percent in April. Inflation a year ago was 4.3 percent.

· Excluding selected food and energy items, core inflation further decelerated to 7.8 percent in April from 8.0 percent in March.

· Inflation rate in the National Capital Region (NCR) went up by 0.2 percentage point to 8.9 percent in April from 8.7 percent in March. Higher annual increments in the prices of clothing, fuel, light and water (FLW), services and miscellaneous items contributed to the uptrend.

· Likewise, inflation rate in Areas Outside the National Capital Region (AONCR) slightly picked up by 0.1 percentage point to 8.4 percent in April from 8.3 percent in March.

• Consumer prices generally rose by 0.6 percent in April compared with 0.3 percent growth in March. Higher prices of selected food items such as rice, bread, flour, noodles, milk and milk products, meat, cooking oil and sugar were recorded during the month. Price hikes in gasoline, diesel, engine and lubricating oil and increased charges for electricity and water rate consumptions in selected regions also contributed to the upward movement.

CONSUMER PRICE INDEX
(2000=100)
APRIL 2005

l By Region, Year-on-Year

· The inflation rate in NCR advanced by 0.2 percentage point to 8.9 percent in April from 8.7 percent in March.

· Inflation rate in AONCR went up to 8.4 percent in April from 8.3 percent in March. Seven regions posted higher inflation rates. The biggest jump of 0.8 percentage point (9.0 percent from 8.2 percent) was registered in Western Visayas. The highest rate was still recorded in Southern Mindanao at 11.0 percent while the lowest rate was in Bicol and Central Visayas at 7.0 percent.

l By Commodity Group, Year-on-Year

· Higher inflation rates were seen in all the commodity groups except for food, beverages and tobacco (FBT) whose inflation slowed down to 7.0 percent in April from 7.2 percent in March. Annual inflation rate for clothing slightly accelerated to 3.8 percent in April from 3.7 percent in March; housing and repairs (H&R), 4.8 percent from 4.7 percent; FLW, 19.7 percent from 18.3 percent; services; 14.4 percent from 14.0 percent; and miscellaneous items, 3.2 percent from 3.1 percent.

· The inflation rate for food alone continued to slowdown, as it was recorded at 7.1 percent in April from 7.4 percent in March.

· Slower annual rates of increases were noticed in the prices of corn, 9.3 percent in April from 9.9 percent in March; cereal preparations, 9.4 percent from 9.5 percent; dairy products, 12.1 percent from 13.4 percent; fish, 7.7 percent from 8.8 percent; meat, 6.8 percent from 8.1 percent; and miscellaneous foods, 5.9 percent from 6.1 percent. Meanwhile, the annual rate of increment was higher in the price of rice at 6.0 percent from 4.9 percent; eggs, 3.8 percent from 2.5 percent; and fruits and vegetables, 7.9 percent from 7.4 percent.

· In NCR, inflation rate for clothing slightly grew to 3.4 percent in April from 3.3 percent in March; FLW, 32.0 percent from 28.9 percent; services, 13.6 percent from 13.2 percent; and miscellaneous items, 2.9 percent from 2.8 percent. While inflation for FBT eased to 4.6 percent from 5.1 percent, inflation for H&R still remained at its March’s rate of 6.1 percent.

• The inflation rate for food alone in NCR further slowed down to 4.6 percent in April from 5.2 percent in March.
• Inflation rate for cereal preparations was slower at 9.1 percent in April from 9.5 percent in March; dairy products, 11.3 percent from 12.2 percent; fish, 1.7 percent from 7.5 percent; meat, 5.5 percent from 7.6 percent; and miscellaneous foods, 2.0 percent from 2.4 percent. However, inflation for rice increased to 5.5 percent from 1.2 percent; corn, 8.5 percent from 5.8 percent; and fruits and vegetables, 5.8 percent from 4.7 percent. Price movement in eggs was still negative at -3.5 percent from -6.5 percent.

· In AONCR, inflation rates for FLW and services correspondingly climbed up to 13.8 percent and 14.8 percent in April from 13.1 percent and 14.4 percent in March. FBT, clothing, H&R and miscellaneous items retained their corresponding March rates of 7.9 percent, 3.9 percent, 3.8 percent and 3.3 percent.

• Inflation rate for food alone in AONCR further eased to 8.0 percent in April from 8.1 percent in March.
• Slowdowns in the annual price additions were noticed in corn, 9.3 percent in April from 10.0 percent in March; dairy products, 12.6 percent from 13.9 percent; and meat, 7.3 percent from 8.4 percent. Meanwhile, annual price hikes were higher in eggs, 6.2 percent from 5.7 percent; fish, 9.3 percent from 9.2 percent; and fruits and vegetables, 8.4 percent from 8.2 percent. Annual gains in the prices of cereal preparations and miscellaneous foods at 9.5 percent and 7.7 percent were similar with those recorded last month.
• The annual price increase for rice was registered at 6.1 percent in April from 5.5 percent in March as twelve regions posted higher inflation rates. The biggest increment of 4.1 percentage points (9.8 percent from 5.7 percent) was noticed in Western Visayas followed by Ilocos Region at 2.4 percentage points (11.2 percent from 8.8 percent).

l By Region, Month-on-Month

· Compared with March 2005, consumer prices in NCR generally grew by 0.7 percentage point to 0.8 percent in April from 0.1 percent. Prices of FBT items rose by 0.3 percent in April from 0.2 percent in March; H&R items, 0.7 percent from 0.6 percent; FLW items, 2.6 percent from -3.3 percent; and miscellaneous items, 0.3 percent from 0.1 percent. Additions in the prices of clothing and services items were still at 0.2 percent and 1.1 percent.

· Prices in AONCR accelerated to 0.5 percent in April from 0.4 percent in March as prices of FBT items were higher by 0.6 percent from 0.2 percent. However, uptick in the prices of H&R items and FLW items slowed to 0.2 percent and 0.6 percent from 0.3 percent and 0.7 percent, respectively. Increases in the prices of clothing and miscellaneous items remained at 0.3 percent and services items, 0.6 percent. The highest month-on-month inflation at 1.4 percent was seen in ARMM while the lowest rate at 0.2 percent was recorded in six regions (CAR, Cagayan Valley, Central Luzon, CALABARZON, Bicol and Eastern Visayas).

l By Commodity Group, Month-on-Month

· Prices of FBT items went up to 0.5 percent in April from 0.2 percent in March; FLW items, 1.3 percent from -0.7 percent; and miscellaneous items, 0.3 percent from 0.2 percent. Slower upward adjustments were however posted in the prices of H&R items at 0.4 percent from 0.5 percent. Prices of clothing and services items moved at their previous month’s rates of 0.3 percent and 0.8 percent.

· The price of rice in the Philippines advanced by 2.0 percent; NCR, 4.0 percent; and AONCR, 1.7 percent. Eleven regions registered higher rates.

· The continued abundant supply of tropical and in-season fruits like mangoes and pineapples at the markets along with the reduction in the prices of selected vegetables caused a 0.7 percent drop in the fruits and vegetables index in the Philippines; -0.1 percent in NCR; and -0.9 percent in AONCR.

· Higher price of sugar along with the gains in the prices of cooking oil, margarine, coffee and selected spices and seasonings still observed in many regions triggered 0.3 percent uptick in the miscellaneous foods index in the Philippines and 0.5 percent in AONCR. However, the group’s index in NCR posted a zero growth during the month.

· Upward adjustments in the prices of beef, chicken and pork effected a 0.4 percent growth in the meat index in the Philippines; 0.5 percent in NCR; and 0.3 percent in AONCR.

· Add-ons in the price of flour continued to raise prices of bread, biscuits and noodles. Thus, the index for cereal preparations climbed by 0.6 percent in the Philippines, 0.4 percent in NCR and 0.7 percent in AONCR.

· Price hikes in milk and milk products pushed up the dairy products index in the three areas by 0.6 percent.

· The prevalence of favorable weather condition brought abundant supply of fish as big volume of fish catch were unloaded in the markets. The group’s index declined by -0.1 percent in the Philippines and -2.2 percent in NCR. On the contrary, the index went up by 0.5 percent in AONCR as mixed price trends were observed in the regions.

· Price additions in gasoline, diesel, lubricating and engine oil primarily effected a 0.8 percent increment in the services index in the Philippines, 1.1 percent in NCR: and 0.6 percent in AONCR. Higher prices of medicines and selected school supplies and increased charges for medical, dental and personal services also contributed to the uptrend.

· Higher generation and system loss charges in electricity consumptions in NCR along with the add-ons in the prices of LPG and kerosene pushed up the FLW index in the area by 2.6 percent. Similarly, the group’s index in AONCR went up by 0.6 percent due to the rise in the prices of kerosene, LPG, charcoal and firewood. Upward adjustments in the electricity and water rates in some regions were also noticed this month. Thus, the overall index grew by 1.3 percent.

· Price gain in cement was still observed in many regions including NCR. Plywood, lumber, nails, gravel and G.I. sheets and increments in the salaries of carpenter and plumber were also priced higher in selected regions. All these factors contributed to the 0.4 percent growth in the index for H&R in the Philippines; 0.7 percent in NCR; and 0.2 percent in AONCR.

NOTES:

1. The second phase CPI survey reports from the following provinces were not received as of May 5, 2005:
    
   1. Zamboanga del Sur
   2. North Cotabato
2. 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