Summary Inflation Report Consumer Price Index (2000=100) : December 2005
Release Date: 05 January 2006
Year-on-Year Inflation Rates, All Items
The year-on-year headline inflation rate in the Philippines decelerated to 6.6 percent in December from 7.1 percent in November. The slower annual inflation rates posted in the indices of all the commodity groups except for housing and repairs (H&R) and fuel, light and water (FLW) brought about the downtrend. Inflation a year ago was 8.6 percent. The average headline inflation rate for the year 2005 was 7.6 percent, higher by 1.6 percentage points than 6.0 percent in 2004.
Excluding selected food and energy items, core inflation eased to 5.8 percent in December from 6.1 percent in November. The average annual core inflation rate was higher by 1.3 percentage points to 7.0 percent in 2005 from 5.7 percent in 2004.
Likewise, inflation rate in the National Capital Region (NCR) slowed by 0.6 percentage point to 7.4 percent in December from 8.0 percent in November mainly due to the 1.9 percentage points slowdown (4.1 percent from 6.0 percent) in the rate of the heavily weighted food, beverages and tobacco (FBT) items. The downward trend in the rates of the other commodity groups except for H&R and FLW also contributed to the decline. The average inflation in the area was 8.6 percent compared to 5.8 percent recorded a year ago.
Inflation in Areas Outside the National Capital Region (AONCR) eased to 6.4 percent in December from 6.8 percent in November due to the slower movements in the annual price increments of all the commodity groups except for clothing and H&R. Average inflation for the year at 7.2 percent was higher than the 6.1 percent in 2004.
Month-on-Month Inflation Rates, All Items
Compared with November 2005, the general level of consumer prices increased at a slower pace of 0.3 percent in December from 0.8 percent as prices of petroleum products went down during the month. Moreover, reduction in the price of rice along with the slower upward adjustments in the prices of selected food groups such as cereal preparations, dairy products, eggs and fish also contributed to the downtrend.
CONSUMER PRICE INDEX
l By Region, Year-on-Year
The inflation rate in NCR improved by 0.6 percentage point to 7.4 percent in December from 8.0 percent in November.
Inflation in AONCR slowed to 6.4 percent in December from 6.8 percent in November. Eight regions posted lower annual inflation rates with the biggest slowdown of 1.3 percentage points recorded in Central Luzon (5.8 percent from 7.1 percent). The lowest inflation rate was noticed in Central Luzon and Central Mindanao at 5.8 percent while the highest rate was in ARMM at 9.1 percent.
Among the regions in AONCR, the highest annual average inflation rate at 9.3 percent was posted in Ilocos while Eastern Visayas registered the lowest annual average inflation for the year at 6.4 percent.
l By Commodity Group, Year-on-Year
Measured from a year ago, prices of FBT items moved up at slower rate of 5.6 percent in December from 6.3 percent in November; clothing items, 3.1 percent from 3.2 percent; services items, 10.1 percent from 10.9 percent; and miscellaneous items, 3.0 percent from 3.1 percent. Meanwhile, annual price increments in H&R and FLW items were correspondingly higher at 4.2 percent and 14.8 percent from their respective previous month’s rates of 4.1 percent and 14.4 percent.
The inflation rate for food alone at the national level decelerated to 5.6 percent in December from 6.4 percent in November.
The price of corn still registered a negative annual rate of -1.5 percent from -1.7 percent. Moreover, slower rate of annual increase was observed in the price of rice, 8.0 percent in December from 8.1 percent in November; cereal preparations, 6.9 percent from 7.0 percent; fish, 4.7 percent from 5.6 percent; fruits and vegetables, 3.0 percent from 5.7 percent; meat, 3.1 percent from 5.1 percent; and miscellaneous foods, 7.1 percent from 7.2 percent. On the other hand, annual inflation rates were correspondingly higher in the prices of dairy products and eggs at 7.9 percent and 3.6 percent from 7.6 percent and 3.2 percent, respectively.
The annual average inflation for food alone in 2005 was 6.5 percent, slightly higher than the 6.4 percent in 2004.
In NCR, inflation for FBT was slower at 4.1 percent in December from 6.0 percent in November; clothing, 1.6 percent from 2.0 percent; services, 11.3 percent from 12.3 percent; and miscellaneous items, 2.6 percent from 2.7 percent. On the other hand, inflation rates for H&R and FLW correspondingly grew to 6.4 percent and 19.1 percent from 6.3 percent and 15.4 percent, respectively.
Inflation for food alone in NCR at 3.9 percent in December was slower than the 6.0 percent growth in November.
Compared to a year ago, prices of fruits and vegetables dropped to -2.8 percent in December from 7.2 percent in November. In addition, lower rate was noticed in the price of rice, 4.9 percent from 5.3 percent; corn, 2.8 percent from 4.7 percent; cereal preparations, 7.0 percent from 7.3 percent; dairy products, 8.2 percent from 8.3 percent; fish, 2.1 percent from 3.0 percent; and meat, 2.1 percent from 5.7 percent. Meanwhile, the annual price add-ons in eggs and miscellaneous foods were correspondingly higher at 1.7 percent and 6.8 percent from their respective last month’s rates of 0.4 percent and 6.6 percent.
The annual average inflation rate of the group eased to 4.8 percent in 2005 from 6.4 percent in 2004.
In AONCR, inflation rate for FBT slowed to 6.1 percent in December from 6.4 percent in November; FLW, 12.6 percent from 13.9 percent; services, 9.4 percent from 10.0 percent; and miscellaneous items, 3.2 percent from 3.3 percent. On the contrary, inflation for clothing slightly moved up to 3.7 percent from 3.6 percent while inflation for H&R remained at 2.6 percent.
Prices of food items on an annual basis decelerated to 6.1 percent in December from 6.5 percent in November.
A negative annual rate of 1.6 percent in December was recorded in the price of corn from -1.8 percent. Moreover, annual upward price adjustment in fish was slower at 5.4 percent in December from 6.1 percent; fruits and vegetables, 4.9 percent from 5.2 percent; meat, 3.4 percent from 4.8 percent; and miscellaneous foods, 7.3 percent from 7.5 percent.
Annual price hike in rice was at 8.4 percent from 8.5 percent. Nine regions posted lower annual rates with the biggest slowdown of 2.1 percentage points (5.5 percent from 7.6 percent) seen in Central Visayas.
Higher annual price gain was noted in dairy products at 7.7 percent from 7.3 percent while the annual price adjustments in cereal preparations and eggs were still at 6.8 percent and 4.1 percent, respectively.
The 2005 average inflation of the food alone group at 7.0 percent was higher by 0.5 percentage point from 6.5 percent last year.
l By Region, Month-on-Month
The month-on-month inflation in NCR registered at 0.5 percent in December was slower than 0.7 percent in November as prices of services items dropped by 0.6 percent from 0.6 percent increase. In addition, price increments of the FLW items decelerated to 3.2 percent from 3.5 percent. However, price gains of FBT and H&R items were corresponding higher at 0.8 percent and 0.2 percent from 0.4 percent and zero growth, respectively. Add-ons in the prices of clothing and miscellaneous items remained at 0.1 percent and 0.2 percent.
Compared with the 0.9 percent increase in November 2005, the general price gain was slower in December for AONCR at 0.2 percent. Prices of services items slightly declined by 0.1 percent from 1.6 percent. Moreover, uptick in the prices of FBT items eased to 0.2 percent from 0.5 percent; FLW items, 1.4 percent from 4.4 percent; and miscellaneous items, 0.2 percent from 0.3 percent. Price additions in clothing and H&R items were still at 0.3 percent and 0.2 percent, respectively. The lowest month-on-month inflation at -0.1 percent was noticed in Central Luzon while the highest rate of 0.8 percent was recorded in ARMM.
l By Commodity Group, Month-on-Month
Movements in the general level of consumer prices slowed down to 0.3 percent in December from 0.8 percent in November due to the 0.3 percent reduction in the prices of services items from the 1.2 percent growth last month. In addition, slower price increases were noted in FBT items at 0.3 percent from 0.5 percent; FLW items, 2.1 percent from 4.0 percent; and miscellaneous items, 0.2 percent from 0.3 percent. On the other hand, prices of H&R items went up to 0.2 percent from 0.1 percent while add-ons in the prices of clothing items remained at 0.3 percent.
The cold weather conditions and the bigger demand for fish products resulted to price hikes in fish species particularly shrimps and crabs. Thus, the group’s index climbed by 4.2 percent in December from 1.1 percent in November in NCR. Likewise, the corresponding index in the national level and in AONCR also picked up by 0.8 percent and 0.1 percent. These were however slower than their respective last month’s growth rates of 1.0 percent and 0.9 percent.
Bigger demand brought about by the holiday season raised prices of selected fruits particularly lanzones, apple and banana in NCR. Moreover, prices of vegetables in the area also picked up during the month as floods that hit parts of Luzon strongly affected movements of vegetables from the production areas to various wet markets. Thus, the fruits and vegetables index in the area and at the national level correspondingly rose by 1.7 percent and 0.7 percent from -1.8 percent and 0.3 percent, respectively. However, the 0.3 percent increment in the prices of fruits and vegetables in AONCR was slower than 1.0 percent in November.
Increases in the prices of cooking oil, sugar, margarine, selected spices and seasonings during the month pegged the miscellaneous foods index in the three areas to gain by 0.2 percent.
Upward adjustments in the prices of milk and milk products observed in many regions including NCR were slower compared to their last month’s rates. Thus, the dairy products index in the Philippines and AONCR correspondingly moved at 0.5 percent and 0.6 percent from 0.8 percent while in the NCR, it rose by 0.2 percent from 0.6 percent.
The sufficient supply of rice resulting from the on-going harvest of palay slightly brought down the rice index in the Philippines and AONCR by 0.1 percent. On the contrary, its price in NCR slightly grew by 0.1 percent.
The 8.8 percentage points (4.0% from 12.8%) slowdown in the price hike of LPG along with the price decrease of kerosene caused the FLW index in the three areas to decelerate: Philippines, 2.1 percent from 4.0 percent; NCR, 3.2 percent from 3.5 percent; and AONCR, 1.4 percent from 4.4 percent.
The general downward adjustments in the prices of petroleum products (gasoline, diesel, engine and lubricating oil) primarily pulled down the services index in the three areas: Philippines, -0.3 percent; NCR, -0.6 percent; and AONCR, -0.1 percent.
Uptick in the prices of selected construction materials mainly effected the 0.2 percent growth in the H&R index in the three areas.
The survey reports from the following provinces were not received as of January 6, 2006:
Sulu - 1st and 2nd phase
Oriental Mindoro - 2nd phase
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, email address: email@example.com).
|(Sgd.) CARMELITA N. ERICTA
Source: National Statistics Office
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