· Year-on-year headline inflation rate at the national level slightly moved upward to 8.5 percent in February from 8.4 percent in January as the inflation of food, beverages and tobacco (FBT), housing and repairs (H&R) and miscellaneous items went up. Inflation a year ago was 4.0 percent.

· Excluding selected food and energy items, core inflation picked up by 0.2 percentage point to 8.1 percent in February from 7.9 percent in January.

· Meanwhile, inflation rate in the National Capital Region (NCR) slightly slowed down by 0.1 percentage point to 8.8 percent in February from 8.9 percent in January. This was due to the lower inflation rates registered in the indices of FBT, fuel, light and water (FLW) and services.

· Inflation rate in Areas Outside the National Capital Region (AONCR) was 8.3 percent in February, the same rate recorded in January.

• Compared with January, the general level of consumer prices increased at a slower rate of 0.2 percent in February from 0.7 percent. This can be attributed to the reductions in the prices of selected food items such as eggs, fruits, vegetables, pork and chicken. The decline in the price of LPG and lower electricity rate observed in selected regions including NCR also contributed to the downward trend.

CONSUMER PRICE INDEX
(2000=100)
FEBRUARY 2005

l By Region, Year-on-Year

· The inflation rate in NCR slightly decelerated by 0.1 percentage point to 8.8 percent in February from 8.9 percent in January.

· Inflation rate in AONCR moved at its January rate of 8.3 percent. Seven regions posted higher inflation rates. The biggest increase at 0.5 percentage point was noticed in CALABARZON, Western Visayas and ARMM. The highest rate was still noted in Southern Mindanao at 11.0 percent while the lowest rate was in Eastern Visayas at 6.7 percent.

l By Commodity Group, Year-on-Year

· Inflation for FBT rose to 7.6 percent in February from 7.4 percent in January; H&R, 4.5 percent from 4.2 percent; and miscellaneous items, 3.1 percent from 2.9 percent. On the other hand, inflation rate for FLW and services correspondingly slowed down to 18.7 percent and 13.4 percent from their respective last month’s rates of 20.1 percent and 13.6 percent. Inflation for clothing still remained at 3.5 percent.

· The inflation rate for food alone at 7.8 percent in February was higher than the 7.6 percent recorded in January.

· Higher annual rate was observed in the price of rice, 4.8 percent in February from 4.3 percent in January; cereal preparations, 9.7 percent from 9.3 percent; dairy products, 12.7 percent from 10.4 percent; fish, 9.3 percent from 9.0 percent; and miscellaneous foods, 6.1 percent from 6.0 percent. Meanwhile, the price of corn moved slower at 11.6 percent from 12.4 percent; eggs, 4.2 percent from 5.5 percent; fruits and vegetables, 9.4 percent from 9.7 percent; and meat, 8.8 percent from 9.7 percent.

• In NCR, inflation rate for FBT slid to 5.4 percent in February from 5.9 percent in January; FLW, 31.1 percent from 32.5 percent; and services, 12.1 percent from 12.4 percent. However, inflation for H&R and miscellaneous items correspondingly went up to 5.5 percent and 2.8 percent from 4.6 percent and 2.7 percent. Inflation for clothing retained its previous month’s rate of 3.2 percent.
• The inflation rate for food alone in NCR eased to 5.5 percent in February from 6.0 percent in January.
• Inflation for eggs posted a negative rate of 2.5 percent in February from 2.8 percent growth in January. Moreover, the annual price hikes in corn slowed to 6.2 percent from 8.0 percent; fish, 7.0 percent from 10.3 percent; fruits and vegetables, 7.9 percent from 13.2 percent; and miscellaneous foods, 2.8 percent from 2.9 percent. On the contrary, higher annual price increments were observed in rice, 0.3 percent from 0.1 percent; cereal preparations, 10.7 percent from 10.6 percent; dairy products, 11.2 percent from 8.9 percent; and meat, 7.0 percent from 5.2 percent.
• In AONCR, inflation rate for FBT climbed to 8.3 percent in February from 7.9 percent in January; clothing, 3.7 percent from 3.5 percent; and miscellaneous items, 3.2 percent from 3.0 percent. Meanwhile, inflation for FLW and services correspondingly slipped to 12.8 percent and 14.1 percent from their respective previous month’s rates of 14.1 percent and 14.3 percent. H&R items maintained its last month’s rate of 3.9 percent.
• Inflation rate for food alone in AONCR advanced to 8.5 percent in February from 8.2 percent in January.
• The annual price addition in rice was at 5.5 percent in February from 4.9 percent in January as twelve regions posted higher rates. The biggest increase of 3.2 percentage points (9.0 percent from 5.8 percent) was noted in Ilocos.
• Inflation rate for cereal preparations rose to 9.3 percent in February from 8.8 percent in January; dairy products, 13.3 percent from 11.0 percent; fish, 9.9 percent from 8.7 percent; fruits and vegetables, 9.9 percent from 8.6 percent; and miscellaneous foods, 7.6 percent from 7.3 percent. On the other hand, the annual growth in the price of corn decelerated to 11.7 percent from 12.4 percent; eggs, 6.3 percent from 6.4 percent; and meat, 9.7 percent from 11.7 percent.

l By Region, Month-on-Month

• Prices in NCR registered a 0.2 percent growth in February, slower than the 1.1 percent in January. The rates of FBT and FLW items correspondingly decreased by -0.4 percent and -0.7 percent in February from their respective January rates of -0.3 percent and 8.4 percent. In addition, prices of H&R items slid to 1.2 percent from 2.0 percent. On the contrary, services advanced to 0.2 percent from -0.4 percent while the rates in the previous month were retained for clothing and miscellaneous items at 0.2 percent and 0.3 percent.
• Prices in AONCR moved down to 0.3 percent in February from 0.6 percent in January as the rate of FLW still recorded a negative rate of 0.1 percent from -0.4 percent. Moreover, slowdowns were noticed in the rates of FBT and services at 0.4 percent and 0.2 percent from 1.0 percent and 0.3 percent. Price movements in clothing and miscellaneous items still remained at 0.3 percent.

l By Commodity Group, Month-on-Month

• The month-on-month inflation rate slowed down to 0.2 percent in February from 0.7 percent in January primarily due to the 0.3 percent drop in the prices of FLW items. Increases in the prices of FBT and clothing items also improved to 0.2 percent from 0.7 percent and 0.3 percent and H&R items, 0.7 percent from 1.0 percent. However, prices of services items moved up to 0.2 percent from 0.1 percent while miscellaneous items still maintained its last month’s price increment of 0.3 percent.
• The big volume of harvests of vegetables due to favorable weather conditions brought abundant supply in the markets causing their prices to drop. Prices of fruits also decreased during the month. Thus, the group’s index for fruits and vegetables decline in the three areas: Philippines, -2.8 percent from -0.4 percent; NCR, -5.4 percent from -6.1 percent; and AONCR, -1.9 percent from 1.4 percent.
• The good catch of fishermen due to the favorable weather conditions experienced during the month resulted to sufficient supply of fish in the markets. This slightly pushed down prices its prices by -0.1 percent in NCR. Similarly, the increments in the prices of fish in AONCR and in the Philippines correspondingly improved to 0.9 percent and 0.6 percent from 2.0 percent and 2.1 percent.
• Low demand for meat due to the onset of the Lenten season generally brought down prices of pork and chicken during the month. Thus, the meat index in the Philippines fell by -0.2 percent; NCR, -0.6 percent; and AONCR, -0.1 percent.
• Higher prices of imported raw materials for the manufacturing of milk and milk products noted during the month mainly contributed to the 2.3 percent uptick in the dairy products indices for the Philippines and AONCR and 2.4 percent in NCR.
• The price of rice in NCR rose to 0.2 percent from -0.6 percent. Likewise, the price of rice in AONCR slightly grew to 0.6 percent from 0.5 percent as five regions posted higher rates. Overall, the index moved up by 0.5 percent, same rate registered last month.
• The continued higher prices of cooking oil, powdered tonic drink, coffee, sugar, margarine and selected spices and seasonings still observed in selected regions including NCR raised the miscellaneous foods index in the Philippines and NCR by 0.2 percent and 0.3 percent in AONCR.
• Upward adjustments in the prices of flour, biscuits, bread and noodles raised the index for cereal preparations by 0.7 percent in the Philippines, 0.6 percent in NCR and 0.8 percent in AONCR.
• Price gains in selected construction materials caused the H&R index in the Philippines to accelerate by 0.7 percent; NCR, 1.2 percent; and AONCR, 0.3 percent.
• Higher prices of engine oil, lubricating oil, diesel and gasoline posted in selected regions including NCR along with the increased charges for medical and personal services in some regions pegged an increment of 0.2 percent in the services index.
• Price hikes in some items for personal care and effects, laundry and cleaning supplies still noted in selected regions pushed up the miscellaneous items index in the three areas by 0.3 percent. Moreover, price increments in selected household appliances and furnishings in some regions also added to the uptick.
• The FLW index at the national level dropped by -0.3 percent from 2.6 percent; NCR, -0.7 percent from 8.4 percent; and AONCR, -0.1 percent from -0.4 percent. This was mainly effected by the reduction in the price of LPG in many regions including NCR. Decline in the prices of charcoal and kerosene recorded in some regions and lower electricity rate in NCR also contributed to the downward movement.

NOTES:

1. The CPI survey reports from the following provinces were not received as of March 4, 2005:
    
   1. Sulu -1st phase and 2nd phase surveys
   2. Southern Leyte -1st phase survey
   3. Isabela -2nd phase survey
   4. Biliran -2nd phase survey
   5. Camiguin -2nd phase survey
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