Summary Inflation Report Consumer Price Index (1994=100) : September 2004
Release Date: 05 October 2004
SEPTEMBER AND AUGUST 2004
Year-on-Year Headline Inflation Rates, All Items
Year-on-Year Core Inflation Rates, Philippines
Year-on-year headline inflation rate in the Philippines went up by 0.6 percentage point to 6.9 percent in September from 6.3 percent in August. Higher inflation rates of all the commodity groups except for clothing brought about the uptrend. Inflation a year ago was 2.9 percent.
Likewise, inflation rate in the National Capital Region (NCR) picked up to 6.4 percent in September from 6.1 percent in August due to the acceleration in the inflation rates of housing and repairs (H&R), fuel, light and water (FLW) and services.
Inflation rate in Areas Outside the National Capital Region (AONCR) advanced by 0.7 percentage point to 7.1 percent in September from 6.4 percent in August as the inflation rates of all the commodity groups moved upward.
Excluding selected food and energy items, core inflation grew by 0.4 percentage point to 6.6 percent in September from 6.2 percent in August.
Month-on-Month Inflation Rates, All Items
The month-on-month inflation rate increased to 0.6 percent in September from 0.5 percent in August. This can be attributed to the upward adjustments in the prices of selected food items such as flour, bread, noodles and other cereal products, milk and milk products, cooking oil, fruits, vegetables and selected miscellaneous foods. Higher electricity rates and the continued increases in the prices of LPG, kerosene, diesel, gasoline, engine oil and selected construction materials were also noted during the month.
CONSUMER PRICE INDEX
l By Region, Year-on-Year
The inflation rate in NCR rose by 0.3 percentage point to 6.4 percent in September from 6.1 percent in August.
Inflation rate in Areas Outside the National Capital Region (AONCR) jumped by 0.7 percentage point to 7.1 percent in September from 6.4 percent in August as all the regions recorded higher annual inflation rates. The biggest increase of 1.3 percentage points (9.7 percent from 8.4 percent) was posted in Caraga. The highest rate was observed in Southern Mindanao at 10.0 percent while the lowest was still registered in Cagayan Valley at 4.6 percent.
l By Commodity Group, Year-on-Year
Inflation rates for all the commodity groups accelerated in September except for clothing whose inflation moved at its August rate of 2.2 percent. Inflation for food, beverages and tobacco (FBT) advanced to 7.1 percent in September from 6.5 percent in August; H&R, 3.4 percent from 3.0 percent; FLW, 9.2 percent from 7.2 percent; services, 11.7 percent from 11.3 percent; and miscellaneous items, 2.4 percent from 2.3 percent.
The inflation rate for food alone went up by 0.5 percentage point to 7.3 percent in September from 6.8 percent in August.
Higher annual rates were noticed in the prices of corn, 11.9 percent in September from 11.6 percent in August; cereal preparations, 5.8 percent from 5.5 percent; dairy products, 9.1 percent from 8.3 percent; eggs, 6.2 percent from 6.1 percent; fruits and vegetables, 9.5 percent from 5.4 percent; and miscellaneous foods, 4.5 percent from 4.1 percent. Add-on in the price of rice remained at 3.0 percent while the increments in the prices of fish and meat correspondingly slowed down to 8.7 percent and 15.4 percent from 9.2 percent and 15.5 percent.
In NCR, inflation rate for H&R increased to 3.0 percent in September from 2.7 percent in August; FLW, 7.5 percent from 4.5 percent; and services, 12.7 percent from 12.5 percent. On the other hand, inflation rate for clothing slightly decelerated to 2.1 percent from 2.2 percent while inflation for FBT and miscellaneous items correspondingly moved at their previous month’s rates of 6.1 percent and 2.7 percent.
The inflation rate for food alone in NCR slightly eased to 6.3 percent in September from 6.4 percent in August as the annual increase in the price of fish slowed to 6.7 percent from 11.4 percent. Higher annual rates were however noticed in the prices of all the other food groups: rice, 0.3 percent in September from 0.1 percent in August; corn, 9.7 percent from 5.5 percent; cereal preparations, 6.1 percent from 6.0 percent; dairy products, 6.6 percent from 6.2 percent; eggs, 8.9 percent from 8.3 percent; fruits and vegetables, 11.6 percent from 7.3 percent; meat, 12.4 percent from 12.3 percent; and miscellaneous foods, 2.9 percent from 2.7 percent.
In AONCR, all the commodity groups recorded higher inflation rates. Inflation for FBT climbed to 7.4 percent in September from 6.6 percent in August; clothing, 2.3 percent from 2.1 percent; H&R, 3.6 percent from 3.1 percent; FLW, 10.2 percent from 8.7 percent; services, 11.3 percent from 10.7 percent; and miscellaneous items, 2.3 percent from 2.1 percent.
Inflation rate for food alone further gained at 7.6 percent in September from 7.0 percent in August.
Higher annual increases were posted in the prices of corn, 11.9 percent in September from 11.6 percent in August; cereal preparations, 5.7 percent from 5.2 percent; dairy products, 10.1 percent from 9.2 percent; eggs, 5.4 percent from 5.3 percent; fish, 9.2 percent from 8.7 percent; fruits and vegetables, 8.9 percent from 4.8 percent; and miscellaneous foods, 5.3 percent from 4.7 percent. Price hikes in meat remained high at 16.6 percent from 16.8 percent.
The annual price increment of rice slightly improved to 3.4 percent in September from 3.5 percent in August as seven regions registered slower rates. The biggest slowdown at 2.6 percentage points was seen in Northern Mindanao (7.4 percent from 10.0 percent).
l By Region, Month-on-Month
Prices in NCR generally inched up to 0.4 percent in September from 0.2 percent in August primarily due to the 2.5 percent growth in the prices of FLW items. Moreover, prices of FBT and H&R items correspondingly grew to 0.2 percent and 0.3 percent in September from 0.1 percent in August and services items, 0.5 percent from 0.4 percent. On the other hand, increments in the prices of clothing and miscellaneous items slid to 0.1 percent from 0.2 percent and 0.5 percent, respectively.
Prices in AONCR picked up to 0.7 percent in September from 0.6 percent in August. Prices of clothing, H&R and miscellaneous items corresponding accelerated to 0.3 percent, 0.5 percent and 0.4 percent from 0.2 percent and FLW items, 1.1 percent from 0.7 percent. Price movements of FBT items were recorded at 0.7 percent while the gains in the prices of services items were slightly lower at 0.7 percent from 0.8 percent.
l By Commodity Group, Month-on-Month
Compared with August 2004, prices generally increased to 0.6 percent in September from 0.5 percent mainly due to the upward movements in the prices of FLW items (1.6 percent from 0.6 percent). In addition, prices of H&R items rose to 0.4 percent from 0.1 percent. Price increases of FBT and services items remained at 0.6 percent and clothing and miscellaneous items, 0.3 percent.
The floods brought about by monsoon rains lowered production of vegetables causing insufficient supply in various wet markets. In addition, prices of selected fruits also went up during the month. Thus, the index for fruits and vegetables in the three areas significantly accelerated: Philippines, 2.9 percent in September from -0.4 percent in August; NCR, 4.1 percent from -1.8 percent; and AONCR, 2.5 percent from 0.1 percent.
The general upward adjustments in the prices of cooking oil, powdered tonic drink, coffee, sugar, margarine, ginger and selected spices and seasonings along with the increases in the prices of meals eaten outside the home in selected regions raised the miscellaneous foods index in the Philippines by 0.7 percent; NCR, 0.1 percent; and AONCR, 0.9 percent.
Sufficient supply of chicken and pork lowered the meat index in the three areas: Philippines, -0.4 percent; NCR, -0.6 percent; and AONCR, -0.2 percent.
Price additions in milk and milk products in the Philippines improved to 1.0 percent in September from 1.7 percent in August; NCR, 0.7 percent from 1.6 percent; and AONCR, 1.1 percent from 1.8 percent.
Prices of fresh and processed selected fish species in NCR markets dropped by -2.7 percent from a 0.6 percent gain last month. However, prices of fishery products in AONCR picked up by 0.9 percent from 0.4 percent. Hence, the group’s index at the national level moved at a slower rate of 0.3 percent from 0.4 percent.
Higher prices of flour were still observed during the month. Consequently, prices of bread, biscuits, noodles and other cereals went up. These factors contributed to the 0.6 percent growth in the index for cereal preparations in the Philippines, 0.5 percent in NCR and 0.7 percent in AONCR.
The continued sufficient supply of rice in NCR effected a decline of -0.1 percent in its index for two consecutive months. Moreover, the onset of harvest season for palay in some provinces brought discounts in the price of rice in these areas. Thus, the index for rice in the Philippines and AONCR dropped by -0.1 percent.
Higher basic charge for electricity rate in NCR along with the continued upsurge in the prices of LPG and kerosene raised the FLW index in the area by 2.5 percent in September from 0.2 percent in August. Similarly, increments in the electricity rates and higher prices of LPG, kerosene, candle, charcoal and firewood observed in most of the regions also raised the group’s index in AONCR by 1.1 percent from 0.7 percent. The national index moved upward by 1.6 percent from 0.6 percent in the previous month.
Uptick in the prices of medicines, gasoline, diesel and engine oil were still noticed in most of the regions including NCR. Moreover, higher charges for medical, hospital and dental services were recorded in selected regions. All these factors pushed the services index up in the Philippines by 0.6 percent; NCR, 0.5 percent; and AONCR, 0.7 percent.
The H&R index in the Philippines rose by 0.4 percent; NCR, 0.3 percent; and AONCR 0.5 percent due to the continued upward adjustments in the prices of selected construction materials. Higher wages of carpenter, electrician and plumber in selected regions along with the increased rental rates in NCR and in some provinces also contributed to the uptrend.
The following survey results were not received as of October 4, 2004:
Negros Occidental - first and second phase survey reports (2000-based)
Bacolod City - first and second phase survey reports (2000-based)
Zamboanga del Sur - first and second phase survey reports (2000-based) and second survey report (1994-based)
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: October 5, 2004
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