Summary Inflation Report Consumer Price Index (1994=100) : June 2002
Release Date: 05 July 2002
JUNE AND MAY 2002
|Inflation Rates, Philippines, All Items|
Year-on-year inflation decelerated to 3.0 percent in June from 3.6 percent in May as the inflation rates of all the commodity groups slowed down. This is the lowest rate registered since January 2000. Inflation a year ago was 6.7 percent.
Similarly, inflation in the National Capital Region (NCR) decreased by 1.4 percentage points at 3.7 percent in June from 5.1 percent in May, the lowest inflation since April 2000. This was mainly effected by the 19.7 percentage points decline in the inflation rate of fuel, light and water (FLW). Lower rates of food, beverages and tobacco (FBT), housing and repairs (H&R) and miscellaneous items also contributed to the slowdown.
Inflation rate in Areas Outside the National Capital Region (AONCR) slowed down to 2.5 percent in June from 3.0 percent in May due to the decline in the inflation rates of all the commodity groups except for FLW.
For four consecutive months, month-on-month inflation was still posted at 0.2 percent in June. Increases in the prices of H&R and services were offset by the 4.6 percentage points slowdown in the prices of FLW.
CONSUMER PRICE INDEX
>By Region, Year-on-Year
*The inflation rate for the National Capital Region (NCR) fell by 1.4 percentage points at 3.7 percent in June from 5.1 percent in May.
*Inflation in Areas Outside the National Capital Region (AONCR) at 2.5 percent in June was slower than the 3.0 percent in May. Except for Southern Mindanao and Caraga, inflation rates for all the other regions recorded lower inflation rates. The biggest decrease was observed in Western Visayas at 1.2 percentage points. The lowest rate was observed in Central Luzon at 1.4 percent while the highest rate at 3.9 percent was registered in Southern Mindanao.
>By Commodity Group, Year-on-Year
All the commodity groups posted lower rates in June. The inflation rate for food, beverages and tobacco (FBT) eased to 1.8 percent in June from 2.3 percent in May; clothing, 2.6 percent from 2.7 percent; H&R, 5.0 percent from 5.1 percent; FLW, 3.7 percent from 10.1 percent; services, 4.8 percent from 5.0 percent; and miscellaneous items, 1.8 percent from 1.9 percent.
The inflation rate for food alone slipped to 1.6 percent in June from 2.2 percent in May. Slower rates were seen in the prices of corn, 0.6 percent in June from 1.8 percent in May; cereal preparations, 3.0 percent from 3.2 percent; dairy products, 3.0 percent from 5.8 percent; eggs, 3.3 percent from 4.9 percent; fish, 3.3 percent from 3.7 percent; and miscellaneous foods, 3.1 percent from 3.5 percent. Moreover, prices of fruits and vegetables recorded a negative rate of 1.0 percent from 0.2 percent while the price of meat posted a zero growth from 0.9 percent.
In NCR, inflation rate of FLW significantly went down by 19.7 percentage points at 7.1 percent in June from 26.8 percent in May mainly due to the 14.3 percent annual reduction in the purchased power adjustment (PPA) for electricity (from P 2.38 per kwh in June 2001 to 2.04 per kwh in June 2002). Inflation rate of FBT slid to 1.1 percent in June from 1.4 percent in May; H&R, 6.8 percent from 7.0 percent; and miscellaneous items, 0.8 percent from 1.1 percent. Meanwhile, inflation rates of clothing and services correspondingly increased to 3.5 percent and 5.0 percent in June from their respective May rates of 3.4 percent and 4.4 percent.
The inflation rate for food alone decelerated to 1.0 percent in June from 1.3 percent in May. Slower rates were noticed in the prices of cereal preparations, 3.6 percent from 4.0 percent; dairy products, 4.0 percent from 6.7 percent; eggs, 1.0 percent from 5.7 percent; and miscellaneous foods, 4.0 percent from 4.5 percent. Meanwhile, price discounts were still seen in fish, -0.7 percent from –2.9 percent; fruits and vegetables, -0.5 percent from –1.0 percent; and meat, -1.7 percent from –0.4 percent. Prices of rice and corn still moved at their respective May rates of –0.5 percent and –12.4 percent.
In AONCR, all the commodity groups slowed down in June except for FLW whose inflation rate picked up by 2.0 percent this month from 1.9 percent in May. Inflation rate for FBT slackened to 1.9 percent in June from 2.5 percent in May; clothing, 2.3 percent from 2.4 percent; H&R, 3.8 percent from 3.9 percent; services, 4.6 percent from 5.3 percent; and miscellaneous items, 2.1 percent from 2.3 percent.
Inflation rate for food alone was lower by 0.6 percentage point at 1.8 percent in June from 2.4 percent in May.
A negative rate was observed in the index of fruits and vegetables, -1.3 percent in June from 0.5 percent in May. Reductions were also registered in the rates for corn, 0.8 percent from 2.2 percent; cereal preparations, 2.8 percent from 2.9 percent; dairy products, 2.6 percent from 5.5 percent; eggs, 4.1 percent from 4.6 percent; fish, 4.1 percent from 5.2 percent; meat, 0.7 percent from 1.5 percent; and miscellaneous foods, 2.7 percent from 3.0 percent.
Despite the negative rates posted in some regions, the price of rice advanced to 0.8 percent in June from 0.6 percent in May as nine regions recorded higher rates. The biggest jump at 2.7 percentage points was noted in Southern Mindanao followed by Central Mindanao at 1.9 percentage points.
>By Region, Month-on-Month
The general level of prices in NCR declined by 0.6 percent in June from 0.5 percent in May as the rates of the indices of FBT and FLW dropped during the month. The rate of FBT was down to –0.5 percent from 0.9 percent and FLW, -12.3 percent from 0.3 percent. The index of clothing items slid to 0.1 percent from 0.3 percent while the price of miscellaneous items remained stable as it posted zero growth from 0.1 percent. On the other hand, prices of services items increased to 3.3 percent from 0.2 percent. The price of H&R remained at 0.1 percent.
Prices in AONCR accelerated by 0.4 percentage point at 0.5 percent in June from 0.1 percent in May brought about by the increments in the prices of most of the commodity groups. The price of FBT advanced to 0.3 percent in June from zero growth; H&R, 0.4 percent from 0.2 percent; FLW, 0.6 percent from 0.3 percent; services, 2.1 percent from 0.5 percent. Movements in the prices of clothing and miscellaneous items still remained at 0.2 percent. The highest month-on-month rate at 0.8 percent was recorded in Ilocos while ARMM registered the lowest rate at –0.1 percent.
>By Commodity Group, Month-on-Month
The month-on-month inflation was still posted at 0.2 percent. The rates of H&R rose to 0.3 percent in June from 0.2 percent in May and services, 2.5 percent from 0.4 percent. These were however, offset by the decreases in the rates of FBT, 0.1 percent from 0.2 percent; clothing, 0.1 percent from 0.3 percent; and FLW, -4.3 percent from 0.3 percent. In addition, prices of miscellaneous items still moved at 0.2 percent.
Abundant supply of fruits reaching various NCR markets that amply met increased demand along with the lower prices of vegetables accounted for the decline of the fruits and vegetables index in the area by 4.1 percent. However, higher prices of fruits and vegetables in many provinces of Luzon raised the index in AONCR by 0.4 percent as retailers increased their prices to recover losses brought by hot weather experienced during the past days. Overall, the index went down by 0.7 percent in June from 0.3 percent in May.
Prices of corn in the Philippines and AONCR decreased by 0.7 percent as eight regions posted negative rates during the month. Meanwhile, prices of corn in NCR remained stable as it registered zero growth this month.
Continued price discounts were recorded in eggs in the three areas: Philippines, -0.2 percent; NCR, -0.4 percent; and AONCR, -0.1 percent due to the prevalence of hot weather conditions during the month.
A 0.2 percent price hike in fish in the NCR was observed as rains and tropical depressions affected prices in the area. Meanwhile, prices of fish in AONCR went down by 0.2 percent in June as many regions posted negative rates. Overall, the index for fish dropped by 0.1 percent.
The price of rice in NCR was slightly reduced by 0.2 percent in June from 0.3 percent in May. However, its price in AONCR and Philippines moved up by 0.5 percent from 0.1 percent as nine regions posted higher rates.
Higher prices of flour and their products pushed up the index for cereal preparations in the three areas by 0.1 percent.
Increments in the prices of milk, cheese and butter raised the index for dairy products in the Philippines, NCR and AONCR by 0.1 percent.
Lower demand of meat during the month pushed down prices of beef and pork in NCR causing the meat index in the area to drop by 0.1 percent in June from the 1.8 percent increase in May. However, prices of meat in AONCR went up by 0.2 percent, slower than the 0.4 percent last month. The national index was down by 0.8 percentage point at 0.1 percent this month from 0.9 percent in May.
Lower prices of selected spices and seasonings pulled down the miscellaneous foods index in NCR by 0.2 percent. However, higher prices of coffee, sugar and other miscellaneous foods in many regions brought gains in the miscellaneous food indices in AONCR and Philippines by 0.3 percent and 0.1 percent, respectively.
*Tuition fee hikes in many regions including in NCR were noted during the month. Price add-ons in selected school supplies, gasoline, diesel, engine oil, medicines and some medical and health goods along with the higher charges for personal services in some regions were also noticed this month. All these contributed to increments in the services index at 2.5 percent in the Philippines, 3.3 percent in NCR and 2.1 percent in AONCR.
*The FLW index in AONCR rose by 0.6 percent as prices of kerosene, firewood and charcoal were up during the month along with higher electricity charge seen in many regions. These were however, offset by the significant drop of -12.3 percent in group’s indexin NCR due to lower currency exchange rate adjustment (CERA) and purchased power adjustment (PPA) for electricity. Overall, the national index also declined to –4.3 percent from 0.3 percent in May.
*Add-ons in the prices of selected construction materials such as cement, gravel, G.I. sheets, plumbing and carpentry materials along with higher rental rates in many regions including NCR caused the H&R indices in the Philippines, NCR and AONCR to climb by 0.3 percent, 0.1 percent and 0.4 percent, respectively.
The second survey results from North Cotabato and Sulu were not received as of July 4, 2002.
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