Summary Inflation Report Consumer Price Index (1994=100) : December 2004
Release Date: 05 January 2005
DECEMBER AND NOVEMBER 2004
Year-on-Year Headline Inflation Rates, All Items
Year-on-Year Core Inflation Rates, Philippines
Year-on-year headline inflation rate at the national level picked up by 0.3 percentage point to 7.9 percent in December from 7.6 percent in November as the inflation rates for all the commodity groups except for housing and repairs (H&R) moved upward. Inflation a year ago was 3.1 percent. The average headline inflation rate for the year 2004 was posted at 5.5 percent, higher by 2.5 percentage points than 3.0 percent in 2003.
Similarly, inflation rate in the National Capital Region (NCR) went up by 0.8 percentage point to 8.0 percent in December from 7.2 percent in November. This was mainly brought about by the 2.2 percentage points increase in the inflation of food, beverages and tobacco (FBT). Higher inflation rates recorded in clothing, services and miscellaneous items also contributed to the uptrend. The average inflation in the area was 5.5 percent compared to 3.8 percent a year ago.
Inflation rate in Areas Outside the National Capital Region (AONCR) accelerated by 0.2 percentage point to 7.9 percent in December from 7.7 percent in November due to the higher inflation rates observed in all the commodity groups except for H&R. The average inflation for the year rose to 5.5 percent in 2004 from 2.7 percent in 2003.
Average inflation rate in 2004 in the three areas at 5.5 percent is the highest since 2002.
Excluding selected food and energy items, core inflation was up by 0.3 percentage point to 7.6 percent in December from 7.3 percent in November. The annual average core inflation was 5.5 percent in 2004 from 3.0 percent a year ago, the highest since 2002.
Month-on-Month Inflation Rates, All Items
On a month-on-month basis, prices moved by 0.6 percent in December, the same rate recorded in November. This was due to the higher prices of food items particularly fruits, vegetables, meat and fish. Price hikes in medicines and higher electricity rates also contributed to the increase.
CONSUMER PRICE INDEX
l By Region, Year-on-Year
The inflation rate in NCR advanced by 0.8 percentage point to 8.0 percent in December from 7.2 percent in November.
Inflation rate in AONCR increased to 7.9 percent in December from 7.7 percent in November as eleven regions posted higher inflation rates. The biggest increment of 0.7 percentage point was seen in Central Mindanao (9.0 percent from 8.3 percent). The highest rate was noticed in Southern Mindanao at 10.6 percent while the lowest rate was still observed in Cagayan Valley at 6.5 percent.
l By Commodity Group, Year-on-Year
Higher inflation rates were noted in all the commodity groups except for H&R whose inflation remained at 3.7 percent. Inflation rate for FBT grew to 7.7 percent in December from 7.1 percent in November; clothing, 2.7 percent from 2.6 percent; fuel, light and water (FLW), 18.0 percent from 17.3 percent; services, 12.7 percent from 12.5 percent; and miscellaneous items, 2.9 percent from 2.7 percent.
Inflation rate for food alone went up to 8.0 percent in December from 7.2 percent in November.
Higher rates were posted in the prices of corn, 11.6 percent in December from 10.3 percent in November; cereal preparations, 7.4 percent from 6.8 percent; dairy products, 9.8 percent from 9.7 percent; eggs, 6.6 percent from 6.3 percent; fish, 9.9 percent from 9.3 percent; fruits and vegetables, 9.2 percent from 5.7 percent; meat, 15.0 percent from 14.2 percent; and miscellaneous foods, 5.7 percent from 5.4 percent. Addition in the price of rice still remained at 3.5 percent.
The annual average inflation rate for food alone was 5.8 percent in 2004 compared to 2.0 percent in 2003.
In NCR, inflation rate for FBT grew to 6.5 percent in December from 4.3 percent in November; clothing, 2.4 percent from 2.2 percent; services, 13.9 percent from 13.7 percent; and miscellaneous items, 3.2 percent from 2.9 percent, Meanwhile, inflation rates for H&R and FLW correspondingly slowed to 2.9 percent and 23.1 percent from 3.0 percent and 23.9 percent respectively.
The inflation rate for food alone in NCR picked up to 6.8 percent in December from 4.3 percent in November.
Except for eggs whose inflation rate eased to 6.0 percent in December from 7.0 percent in November, all the food groups recorded higher inflation rates. Inflation for rice increased to 0.3 percent from zero growth; corn, 9.5 percent from 7.6 percent; cereal preparations, 8.4 percent from 7.4 percent; dairy products, 7.1 percent from 6.8 percent; fish, 10.6 percent from 8.5 percent; fruits and vegetables, 9.0 percent from -3.7 percent; meat, 11.5 percent from 9.8 percent; and miscellaneous foods, 3.4 percent from 3.1 percent.
The annual average inflation rate for food alone accelerated to 5.5 percent in 2004 from 2.7 percent a year ago.
In AONCR, inflation rates for all the commodity groups moved up except for H&R whose inflation remained at 4.2 percent. Inflation for FBT slightly climbed up to 8.0 percent in December from 7.8 percent in November; clothing, 2.8 percent from 2.7 percent; FLW, 15.1 percent from 13.5 percent; services, 12.0 percent from 11.9 percent; and miscellaneous items, 2.8 percent from 2.6 percent.
Inflation rate for food alone in AONCR rose to 8.4 percent in December from 8.1 percent in November.
Higher annual price hikes were noted in corn, 11.7 percent in December from 10.4 percent in November; cereal preparations, 7.0 percent from 6.7 percent; eggs, 6.7 percent from 6.1 percent; fish, 9.7 percent from 9.4 percent; fruits and vegetables, 9.2 percent from 8.9 percent; meat, 16.7 percent from 16.0 percent; and miscellaneous foods, 6.6 percent from 6.5 percent.
The gain in the price of rice improved to 3.9 percent in December from 4.1 percent in November as six regions registered lower rates. The biggest slowdown at 2.1 percentage points (6.7 percent from 8.8 percent) was noted in Western Mindanao.
Annual price adjustment in dairy products was still at 10.8 percent.
The 2004 average inflation of the food alone group at 6.0 percent was higher by 4.3 percentage points from 1.7 percent last year.
l By Region, Month-on-Month
Prices in NCR still moved at 1.3 percent in December. While prices of FBT and miscellaneous items correspondingly jumped to 3.2 percent and 0.4 percent in December from -0.4 percent and 0.1 percent in November, those of clothing and services items slowed down to 0.3 percent and 0.2 percent from their respective previous month’s rates of 0.4 percent and 0.7 percent. Prices of H&R and FLW items generally remained stable as they registered zero growth from 0.3 percent and 15.4 percent.
Prices in AONCR slightly picked up by only 0.1 percentage point to 0.4 percent in December from 0.3 percent. Higher prices were noted in FBT and clothing items, 0.3 percent in December from 0.2 percent in November; FLW items, 2.5 percent from 2.3 percent; and miscellaneous items, 0.3 percent from 0.2 percent. Slower upward adjustments were however noticed in the prices of services items at 0.3 percent from 0.5 percent while price movements in H&R items remained at its last month’s rate of 0.1 percent.
l By Commodity Group, Month-on-Month
The holiday season pushed up consumer prices at the rate of 0.6 percent in December from their November levels. Prices of FBT and miscellaneous items rose to 0.9 percent and 0.3 percent from their respective last month’s rates of 0.1 percent and 0.2 percent. Clothing retained its previous month’s rate of 0.3 percent. ce hikes in clothing and miscellaneous items still remained at d at 10. foods, 6.6 percent from 6.5 percent;On the other hand, price increases in FLW and services items correspondingly slowed to 1.6 percent and 0.3 percent from 6.9 percent and 0.6 percent. Prices of H&R items remained stable as the group’s index posted a zero growth from 0.2 percent.
The effects of the four typhoons that hit Luzon and parts of Visayas were strongly felt in NCR as prices of food items went up. Vegetables were priced higher in the area. Bigger demand brought about by the holiday season also pulled up prices of selected fruits particularly avocado, banana and lanzones in NCR. Thus, the fruits and vegetables index in the area notably increased by 13.5 percent in December from a negative rate of 6.0 percent in November. Likewise, higher prices of selected fruits and vegetables in Luzon provinces primarily caused a 0.6 percent increment in the group’s index during the month from 0.2 percent. Thus, the national index was up by 3.5 percent from -1.3 percent.
Increased demand for meat and meat products brought about by the holiday season raised the group’s index in the three areas: Philippines, 2.2 percent from 0.3 percent; NCR, 5.0 percent from 0.4 percent; and AONCR, 1.1 percent from 0.2 percent.
Inclement weather conditions and higher demand for fish products resulted to price hikes in fish species particularly shrimps, crabs, shells and mollusks. The group’s index increased by 1.3 percent in December from 0.7 percent in November in the Philippines and 5.0 percent from 1.0 percent in NCR. Prices in AONCR also picked up by 0.6 percent, slightly slower than the 0.7 percent increment last month.
The continued upward price adjustments in cooking oil, powdered tonic drink, coffee, sugar, margarine and selected spices and seasonings pegged the miscellaneous foods index in the three areas by an uptrend of 0.3 percent.
The upward adjustment in electricity rate was offsetted by price decrease of LPG in NCR. Thus, the FLW index in the area posted a zero growth from 15.4 percent. Meanwhile, price hikes of LPG, kerosene, firewood and charcoal along with higher electricity rates in selected regions raised the group’s index in AONCR by 2.5 percent from 2.3 percent. Hence, the movement in the overall index was recorded at 1.6 percent, slower than the 6.9 percent increases last month.
Price add-ons in diesel, gasoline and medicines were still noted in many regions including NCR. Moreover, higher charges for selected personal services in many regions were observed during the month. All these factors pushed up the services index in the Philippines and AONCR by 0.3 percent and in NCR, 0.2 percent.
Uptick in the prices of selected laundry and cleaning supplies (detergent soap, floorwax, cleanser and laundry starch) along with price additions in some items for personal care and effects raised the miscellaneous items index in the three areas: Philippines and AONCR, 0.3 percent from 0.2 percent and in NCR, 0.4 percent from 0.1 percent.
The 2000-based CPI survey reports from the following provinces were not received as of January 4, 2005:
Mt. Province -1st phase survey
Negros Occidental -1st and 2nd phase surveys
Bacolod City -1st and 2nd phase surveys
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).
(Sgd.) CARMELITA N. ERICTA
Source: National Statistics Office
Page last updated: January 5, 2005
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