Summary Inflation Report Consumer Price Index (2006=100) : January 2015
Release Date: 05 February 2015
|Year-on-Year Inflation Rates, All Items|
|Jan 2015||Dec 2014||Jan 2014||Year-to-date|
The continuous decline in the annual movement of the indices of housing, water, electricity, gas and other fuels and transport further pushed down the country’s headline inflation to 2.4 percent during the beginning of the year 2015. It was recorded at 2.7 percent in December 2014 and 4.2 percent a year ago. The slowing down of the annual growth rates of other commodity groups except in alcoholic beverages and tobacco, communication and education indices also contributed to the downtrend.
Excluding selected food and energy items, core inflation further decelerated to 2.2 percent in January. It was noted 2.3 percent in the previous month and 3.2 percent in January 2014.
In NCR, inflation eased to 1.5 percent in January. Its annual growth last month was 1.6 percent and 2.7 percent in January 2014. Annual declines were seen in the indices for housing, water, electricity, gas and other fuels and transport while slowdowns were observed in the indices for the seven commodity groups. The index for education moved at its last month’s rate and a zero growth was registered in the communication index.
Similarly, inflation in Areas Outside NCR (AONCR) continued to move at a slower pace of 2.7 percent in January. Inflation in December 2014 was pegged at 3.0 percent and in January 2013, 4.6 percent. This was effected by the annual decreases recorded in the indices of housing, water, electricity, gas and other fuels and transport. Lower annual increments were also posted in the indices for food and non-alcoholic beverages; clothing and footwear; health; recreation and culture; and restaurant and miscellaneous goods and services.
|Year-on-Year Inflation Rates in the Philippines, All Items
January 2010 - January 2015
|Month-on-Month Inflation Rates, All Items
|Jan 2015||Dec 2014|
Consumer prices at the start of the year generally increased by 0.4 percent compared to its December level. This was primarily attributed to the price mark-ups exhibited in selected food items such as fish, fruits and vegetables, meat and eggs. Clothing and footwear items and alcoholic beverages and tobacco were also generally priced higher during the period. Increased charges for sewing services for clothing and higher prices of some items for personal care in selected regions similarly contributed to the uptrend. Upward adjustments in LRT/MRT fares in NCR were also noted during the month.
CONSUMER PRICE INDEX
By Region, Year-on-Year
- Inflation in NCR further eased to 1.5 percent in January.
Inflation in AONCR likewise continued to decelerate as it settled to 2.7 percent in January. Slower annual rates were posted in all the regions except in Western Visayas, Zamboanga Peninsula and Caraga. The lowest rate of 1.7 percent was still in Central Luzon while the highest growth was in Zamboanga Peninsula at 4.1 percent.
By Commodity Group, Year-on-Year
On an annual basis, the housing, water, electricity, gas and other fuels index continued to record a negative rate at -2.1 percent and transport index, -1.3 percent. Moreover, slower annual growth rates were noted in all the other commodity groups except in alcoholic beverages and tobacco index whose annual growth was higher at 4.1 percent and in education index which retained its last month’s figure of 5.1 percent. That for the communication index had a zero growth.
The food alone index in the Philippines further moved at a slower pace of 5.6 percent in January. Last month, it was pegged at 5.7 percent.
Annual increases in all the food groups were slower except in the indices of fish, fruits and vegetables which posted higher annual rates.
In NCR, negative annual growths were posted in the indices of housing, water, electricity, gas and other fuels and transport at -2.4 percent and -0.3 percent, respectively in January. Those for the rest of the commodity groups either decelerated or retained their last month’s rate with the communication index posting a zero growth.
The annual increase in the food alone index in NCR further improved to 4.8 percent in January. It was registered at 5.4 percent last month and in January 2014, 5.1 percent.
Annual growth rates in all the food groups slowed down except in the indices of fruit and vegetable which had faster annual gains of 7.8 percent and 0.1 percent, respectively.
- In AONCR, the indices of housing, water, electricity, gas and water and transport continued to decline as their annual rates correspondingly settled to -1.9 percent and -1.7 percent. Contributing also to the downtrend were the lower annual mark-ups in the indices of food and non-alcoholic beverages at 5.5 percent; clothing and footwear, 2.8 percent; health, 2.3 percent; recreation and culture, 0.8 percent; and restaurant and miscellaneous goods and services, 1.8 percent. The rest of the commodity groups either had faster annual increases or retained their last month’s rates.
The annual growth of the food alone index in AONCR was computed at 5.8 percent in January, the same rate posted last month and in January 2014.
Higher annual gains were noted in the fish index at 5.4 percent in January; fruit index, 12.6 percent; and vegetable index, 2.5 percent.
Meanwhile, the annual growth in the rice index slowed to 8.6 percent as all the regions had lower annual growths except in Central Luzon, CALABARZON and Caraga. The lowest rate of 3.8 percent was noticed in Central Visayas while the highest was in Ilocos at 12.3 percent.
The rest of the food groups had lower annual upticks during the month.
By Region, Month-on-Month
Prices of consumer items in NCR went up 0.4 percent in January. It declined by 0.2 percent a month ago. All the commodity groups recorded higher monthly price increments except the indices of furnishing, household equipment and routine maintenance of the house; communication; and education which posted zero growths during the month.
Consumer prices in AONCR similarly inched up 0.3 percent in January compared from its December level. Last month, it dropped by 0.2 percent. The index of the heavily-weighted food and non-alcoholic beverages moved up at a faster rate of 0.8 percent. The monthly uptick in alcoholic beverages and tobacco index was also higher at 0.7 percent; clothing and footwear index, 0.4 percent; furnishing, household equipment and routine maintenance of the house index, 0.5 percent; health index, 0.2 percent; and recreation and culture index, 0.1 percent. The index for restaurant and miscellaneous goods and services however, had a slower annual increment of 0.1 percent. The rest of the commodity groups had negative monthly adjustments with the indices for communication and education retaining their corresponding last month’s rate of zero growth.
Eleven regions had higher monthly growth rates. Zamboanga Peninsula posted the highest month-on-month growth of 1.2 percent while the lowest rate of -0.1 percent was seen in four regions namely CAR, Central Visayas, Davao and SOCCSKSARGEN.
Among the three big areas of the country, consumer prices moved at a faster rate in Luzon and Mindanao areas compared to those in Visayas.
By Commodity Group, Month-on-Month
At the national level, prices of consumer items generally increased by 0.4 percent. Uptick in the index of food and non-alcoholic beverages was higher at 0.7 percent; alcoholic beverages and tobacco index, 0.6 percent; clothing and footwear and health indices, 0.4 percent; furnishing, household equipment and routine maintenance of the house index 0.3 percent; and recreation and culture index, 0.1 percent. On the other hand, the monthly gain in restaurant and miscellaneous goods and services index eased to 0.1 percent. The rest of the commodity groups had either negative rates or had a zero growth.
The fish index in the Philippines jumped by 2.6 percent; NCR, 3.3 percent; and AONCR, 2.5 percent. This was triggered by the difficulty of catching fish that usually settle deep in the waters during the cold months and the bigger demand as consumers shifted from meat to fish after the holiday season.
Typhoon “Ruby” affected the production of selected vegetables particularly in provinces in the southern part of Luzon, thereby resulting to lower supplies in the markets during the month. Thus, the vegetables index in the three areas picked up by 2.9 percent.
Prices of dalanghita, mango and other fruits generally went down during the month in NCR. It resulted to a 0.3 percent reduction in the fruit index in the area. On the other hand, price add-ons in banana, papaya, mango and pineapple in many provinces raised the fruit index in AONCR by 1.8 percent and in the Philippines, 1.3 percent.
The meat index in AONCR rose 0.3 percent due to price hikes in fresh meat such as pork and beef and processed meat. Meanwhile, in NCR, the price gains in processed and canned meat were offset by the price declines in chicken and pork. Hence, the group’s index in the area registered a zero growth. The national index for meat grew by 0.3 percent.
The harvest of palay during the last quarter of 2014 brought enough supplies of rice in the markets. Moreover, prices of NFA rice generally decreased in NCR during the month. These factors pushed down the rice index in the three areas: Philippines, -0.3 percent; NCR, -1.4 percent; and AONCR, -0.1 percent.
The corn index in the Philippines and AONCR dropped by 0.5 percent due to the negative monthly rates recorded in eight regions as corn prices decreased. Likewise, cheaper prices of corn in NCR resulted to the 1.4 percent decline in its group’s index.
The 0.2 percent reduction in the oils and fats index in NCR was brought about by the general downward price adjustments in cooking oil. The group’s index in AONCR however, went up 0.1 percent due to higher prices of margarine. These offsetting price trends caused a zero growth in the national index.
With increased charges in sewing services of clothing items in selected regions, the index for clothing and footwear in NCR moved up by 0.6 percent and in AONCR and at the national level, 0.4 percent. Higher prices of clothing and footwear items were also noted in many regions.
The index for alcoholic beverages and tobacco in NCR picked up 0.3 percent and in AONCR, 0.7 percent due to price hikes in alcoholic beverages and cigarettes. The national index rose 0.6 percent.
Meals eaten outside the home and some items for personal care in selected provinces were priced higher during the month. Mark-ups in the service charges in beauty shops were also noticed in NCR and in selected provinces. Thus, the index for restaurant and miscellaneous goods and services in the three areas inched up 0.1 percent.
Prices of gasoline and diesel nationwide generally were on the downtrend. Hence, the transport index in AONCR declined by 0.8 percent. Meanwhile, the group’s index in NCR advanced by 2.6 percent due to upward adjustments in LRT/MRT fares. At the national level, the index dropped by 0.2 percent.
Note: CPIs and inflation rates by province and selected city are also available upon request at Philippine Statistics Authority, Economic Sector Statistics Services, Economic Indices and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).
(Sgd.) LISA GRACE S. BERSALES, Ph.D.
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