Summary Inflation Report Consumer Price Index (1994=100) : June 2004
Release Date: 06 July 2004
JUNE AND MAY 2004
|Year-on-Year Headline Inflation Rates, All Items|
|Year-on-Year Core Inflation Rates, Philippines|
Headline inflation in the three areas was pegged at 5.1 percent in June.
Year-on-year headline inflation rate in the Philippines went up by 0.6 percentage point to 5.1 percent in June from 4.5 percent in May. This is the highest inflation rate recorded since November 2001. The uptrend of the inflation rate was primarily brought about by the 3.0 percentage points growth in the inflation of services. Higher inflation rates registered in housing and repairs (H&R), fuel, light and water (FLW) and miscellaneous items also contributed to the increase. Inflation a year ago was 3.4 percent.
Similarly, inflation rate in the National Capital Region (NCR) grew by 0.3 percentage point to 5.1 percent in June from 4.8 percent in May.
Inflation rate in Areas Outside the National Capital Region (AONCR) moved up to 5.1 percent in June from 4.3 percent in May as higher inflation rates were noticed in all the commodity groups except for clothing.
Excluding selected food and energy items, core inflation increased by 0.7 percentage point to 5.4 percent in June from 4.7 percent in May.
|Month-on-Month Inflation Rates, All Items|
Month-on-month inflation rate rose to 1.5 percent in June from 0.5 percent in May as tuition fee and transport fares hikes, higher prices of selected food items, medicines, LPG, kerosene, electricity, gasoline, diesel and engine oil were observed during the month.
CONSUMER PRICE INDEX
l By Region, Year-on-Year
The inflation rate in NCR went up to 5.1 percent in June from 4.8 percent in May.
Inflation rate in Areas Outside the National Capital Region (AONCR) accelerated to 5.1 percent in June from 4.3 percent in May as all the regions recorded higher inflation rates. The biggest increment of 1.8 percentage points was registered in Western Mindanao (5.5 percent from 3.7 percent). The highest rate was still posted in CAR at 9.1 percent while the lowest rate was still observed in Cagayan Valley at 3.0 percent.
l By Commodity Group, Year-on-Year
Inflation rate for services jumped to 8.3 percent in June from 5.3 percent in May. This was the highest inflation rate registered for the group since November 2001. In addition, inflation rate for H&R picked up to 3.7 percent from 3.4 percent; FLW, 6.1 percent from 3.5 percent; and miscellaneous items, 2.0 percent from 1.9 percent. Meanwhile, inflation rates for FBT and clothing correspondingly slowed down to 5.0 percent and 2.1 percent from 5.2 percent and 2.3 percent, respectively.
Inflation rate for food alone was at 5.2 percent in June, the same rate registered in May.
Higher rates were seen in the prices of rice, 1.7 percent in June from 1.2 percent in May; corn, 10.2 percent from 9.4 percent; cereal preparations, 4.6 percent from 3.9 percent; dairy products, 7.3 percent from 6.4 percent; eggs, 4.0 percent from 3.3 percent; and miscellaneous foods, 3.2 percent from 2.6 percent. Slower growths were posted in the prices of fish, 6.7 percent from 7.6 percent; fruits and vegetables, 0.3 percent from 2.5 percent; and meat, 15.9 percent from 16.2 percent.
In NCR, the services group posted a double-digit inflation rate of 10.8 percent in June from 6.5 percent in May. Moreover, inflation for FLW at 3.7 percent was higher than its previous month’s rate of 2.3 percent. Meanwhile, inflation rate for FBT slowed to 4.4 percent from 5.8 percent; clothing, 2.3 percent from 3.1 percent; and miscellaneous items, 2.4 percent from 2.5 percent. Inflation for H&R still remained at 3.3 percent.
The inflation rate for food alone in NCR eased by 1.4 percentage points to 4.6 percent in June from 6.0 percent in May.
Prices of rice and fruits and vegetables correspondingly posted negative rates of 0.1 percent and 3.4 percent from their respective May rates of zero growth and 0.4 percent. In addition, increases in the prices of fish and meat correspondingly improved to 9.3 percent and 14.1 percent from 14.8 percent and 17.4 percent. On the other hand, increments in the prices of cereal preparations picked up to 5.3 percent from 4.6 percent; dairy products, 6.3 percent from 5.5 percent; eggs, 4.4 percent from 3.4 percent; and miscellaneous foods, 2.1 percent from 1.3 percent. The price of corn moved at its May rate of 2.6 percent.
In AONCR, all the commodity groups posted higher inflation rates except for clothing whose inflation remained at 2.0 percent. Inflation rate for FBT moved up to 5.2 percent in June from 5.0 percent in May; H&R, 3.9 percent from 3.4 percent; FLW, 7.5 percent from 4.3 percent; services, 7.1 percent from 4.6 percent; and miscellaneous items, 1.9 percent from 1.7 percent.
The annual growth for food alone in AONCR advanced by 5.4 percent in June from 5.1 percent in May.
The price of rice went up by 0.5 percentage point to 1.9 percent in June from 1.4 percent in May as ten regions posted higher rates. The biggest jump was in Southern Mindanao at 2.7 percentage points (9.6 percent from 6.9 percent) followed by Central Mindanao at 2.5 percentage points (11.3 percent from 8.8 percent).
The price of corn picked up to 10.4 percent in June from 9.5 percent in May; cereal preparations, 4.3 percent from 3.6 percent; dairy products, 7.7 percent from 6.8 percent; eggs, 3.9 percent from 3.3 percent; fish, 6.2 percent from 6.1 percent; meat, 16.6 percent from 15.6 percent; and miscellaneous foods, 3.7 percent from 3.2 percent. Movements in the price of fruits and vegetables eased to 1.7 percent from 3.2 percent.
l By Region, Month-on-Month
Prices in NCR rose by 1.3 percentage points to 1.7 percent in June from 0.4 percent in May. This was primarily due to the 6.6 percent jump in the prices of services items from 0.2 percent in May. In addition, prices of clothing items accelerated to 0.3 percent from 0.2 percent; FLW items, 2.7 percent from 0.5 percent; and miscellaneous items, 0.6 percent from 0.3 percent. On the other hand, add-ons in the prices of FBT and H&R items correspondingly slowed to 0.2 percent and 0.1 percent from 0.7 percent and 0.2 percent.
Prices in AONCR picked up by 1.5 percent in June from 0.5 percent in May brought about by the higher rates posted in all the commodity groups. The rates of FBT increased by 1.1 percent in June from 0.7 percent in May; clothing, 0.4 percent from 0.2 percent; H&R, 0.7 percent from 0.3 percent; FLW, 2.0 percent from 0.6 percent; services, 4.3 percent from 0.4 percent; and miscellaneous items, 0.3 percent from 0.2 percent. The highest month-on-month inflation rate at 2.1 percent was noted in Western Mindanao while the lowest rate of 1.2 percent was recorded in Ilocos, Central Visayas, Eastern Visayas, Northern Mindanao and ARMM.
l By Commodity Group, Month-on-Month
The 5.1 percentage points increment in the prices of services items in June from 0.3 percent in May, primarily pushed up the month-on-month inflation rate to 1.5 percent from 0.5 percent. Prices of FBT items climbed to 0.9 percent in June from 0.7 percent in May; H&R items, 0.5 percent from 0.2 percent; FLW items, 2,2 percent from 0.6 percent; and miscellaneous items, 0.4 percent from 0.2 percent. Price increases in clothing items remained at 0.3 percent.
The low supply of vegetables in the wet markets caused by typhoons Dindo and Enteng that hit many regions in the country during the third week of May and typhoon Gener during the early part of June brought increases in the prices of vegetables. Higher prices of fruits particularly the off-season varieties were also noted during the month. All these factors raised the index of fruits and vegetables in the Philippines by 3.3 percent; NCR, 4.5 percent; and AONCR, 2.9 percent.
The lean month of June pushed up the corresponding price index of rice in the Philippines and AONCR by 0.8 percent and 0.9 percent in June from 0.2 percent in May. As supply of rice in NCR was sufficient to meet the demand, the index posted a zero growth during the month.
The continued upward price adjustments of cooking oil, coffee, sugar, margarine and tea along with the add-ons in the prices of powdered tonic drink, selected species and seasonings and meals eaten outside the home brought gains in the miscellaneous foods index in NCR at 0.7 percent; AONCR and the whole country, 0.6 percent.
Declines in the prices of selected seafoods and fish species were still noted during the month in the NCR as supply coming from the different areas not affected by typhoons was sufficient. This further reduced the index of fish in NCR by -2.3 percent from -1.2 percent. On the contrary, the unfavorable weather conditions effected by typhoons resulted to the 1.1 percent price increases on fish in AONCR. On the national level, the index for fish moved up by 0.5 percent.
The price decrease in meat in the NCR was noted at -1.4 percent from 3.7 percent posted last month as supply of pork improved. Similarly, lower price quotations of chicken and beef were observed during the month. However, prices of meat were up in many regions with Central Mindanao recording the biggest price increase of 7.3 percentage points (8.0 percent from 0.7 percent). Thus, the meat index in the Philippines and AONCR correspondingly went up by 0.4 percent and 1.3 percent.
Higher production costs resulted to the continued increases in the prices of baking ingredients (flour, shortening and yeast) thereby raising prices of bread during the month. Higher prices of biscuits and noodles were also noted. Thus, the index of cereal preparations in the three areas moved up by 0.9 percent.
Add-ons in the prices of milk and milk products pushed up the index of dairy products in the Philippines and AONCR by 1.0 percent and in NCR, 0.8 percent.
The limited supply of egg in the retail markets due to low production caused the 1.1 percent uptick in the prices of eggs in the Philippines; 1.8 percent in NCR; and 0.8 percent in AONCR.
Tuition fee and transport fares hikes in most of the regions including NCR were noted during the month. Price gains in selected school supplies, medicines, some medical and health goods, diesel, gasoline, engine oil along with the higher charges for some personal, medical and dental services were also recorded. All these factors contributed to the increments in the services index at 5.1 percent in the Philippines, 6.7 percent in NCR and 4.3 percent in AONCR.
Prices of LPG and kerosene were still up in NCR and AONCR. Upward adjustments were also seen in the prices of charcoal, firewood and in electricity and water rates. Hence, the FLW index advanced by 2.7 percent in the NCR; 2.0 percent in AONCR; and 2.2 percent at the national index.
Upward price movements in selected construction materials and higher rental rates were observed in many regions including NCR. These factors along with the increased wages of carpenter, electrician and plumber noted in some regions raised the H&R index in the Philippines by 0.5 percent; NCR, 0.1 percent; and AONCR, 0.7 percent.
The 2000-based CPI second phase survey reports from Cagayan and Nueva Vizcaya were not received as of July 6, 2004.
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: July 6, 2004
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