Summary Inflation Report Consumer Price Index (2006=100) : June 2016
Release Date: 05 July 2016
|Year-on-Year Inflation Rates, All Items|
|June 2016||May 2016||June 2015||Year-to-date|
- The annual headline inflation at the national level leaped by 1.9 percent in June 2016. Last month, it was noted at 1.6 percent and in June 2015, 1.2 percent. This was mainly effected by higher annual increment in the heavily-weighted food and non-alcoholic beverages index. Contributing also to the uptrend were higher annual growth recorded in the indices of alcoholic beverages and tobacco; clothing and footwear; furnishing, household equipment and routine maintenance of the house; health; recreation and culture; and restaurant and miscellaneous goods and services (Table 8).
Excluding selected food and energy items, core inflation likewise pushed up to 1.9 percent in June 2016. It was observed at 1.6 percent a month ago and 2.0 percent in June 2015 (Table 15).
In NCR, inflation rose 1.1 percent in June 2016. It was recorded at 1.0 percent in May 2016 and 0.6 percent in June 2015. Higher annual growths were posted in the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; health; and recreation and culture (Table 8).
Similarly, inflation in Areas Outside NCR (AONCR) jumped to 2.1 percent in June 2016. In May 2016, it picked up by 1.7 percent and in the same period last year, 1.4 percent. Higher annual increases were noticed in the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; furnishing, household equipment and routine maintenance of the house; health; and restaurant and miscellaneous goods and services. Moreover, the index for housing, water, electricity, gas, and other fuels posted positive annual rate after a series of annual decreases (Table 8).
|Year-on-Year Inflation Rates in the Philippines, All Items
January 2011 - June 2016
|Month-on-Month Inflation Rates, All Items
|June 2016||May 2016|
The opening of classes in June saw a month-on-month 0.4 percent increase in the prices of consumer items at the country level. This was primarily brought about by the upward adjustments in the prices of food items particularly vegetables, fish, rice and meat. Tuition fee hikes in most of the regions and higher charges in electricity rates also contributed to the uptrend. Increments in the prices of kerosene, LPG and selected construction materials were also noted in many provinces during the month.
CONSUMER PRICE INDEX
By Region, Year-on-Year
- Inflation in NCR advanced 1.1 percent in June 2016.
Likewise, inflation in AONCR accelerated by 2.1 percent in June 2016. Higher annual mark-ups were registered in all the regions except in CAR. Sixteen regions had faster annual upticks during the month. The highest annual inflation at 3.5 percent was noticed in Central Visayas, and Zamboanga Peninsula while the lowest remained in CALABARZON at 0.9 percent.
By Commodity Group, Year-on-Year
At the national level, year-on-year increases were higher in the indices of seven out of the 11 commodity divisions. Meanwhile, slower annual gain was observed in the index of education. The index of communication retained its previous month’s rate of 0.2 percent while the housing, water, electricity, gas, and other fuels index continued to exhibit negative annual rate at -0.4 percent. That for the transport index posted a zero growth during the month (Table 8).
The food alone index in the Philippines climbed by 3.0 percent. Its annual change last month was 2.4 percent and in June 2015, 2.1 percent (Table 13).
The vegetable index continued to register a double-digit annual growth at 16.5 percent. The annual adjustment in the corn index went up 2.6 percent in June; other cereals, flour, cereal preparation, bread, pasta and other bakery products index, 1.5 percent; meat index, 2.5 percent; fish index, 3.9 percent; milk, cheese and egg index, 1.8 percent; oils and fats index, 2.9 percent; and fruits index, 5.5 percent. Meanwhile, the annual growth of sugar, jam, honey, chocolate and confectionary index moved at a slower rate of 3.5 percent with the indices of rice and food products not elsewhere classified still recording negative annual rates of 0.5 percent and 3.0 percent, respectively (Table 10).
In NCR, the annual increment in food and non-alcoholic beverages index was higher at 4.1 percent in June; alcoholic beverages and tobacco index, 3.8 percent; health index, 1.9 percent; and recreation and culture index, 3.2 percent. On the contrary, slower annual add-ons were seen in the indices of education at 2.6 percent and restaurant and miscellaneous goods and services, 1.1 percent. Annual decreases were still noted in the indices of housing, water, electricity, gas, and other fuels at -2.2 percent and transport, -1.1 percent. The rest of the commodity groups retained their previous month’s rate (Table 8).
Movement in the food alone index in NCR further jumped to 4.3 percent in June. A month ago, the index rose by 3.9 percent and in June 2015, 0.8 percent (Table 13).
The indices of corn and vegetables continued to show double-digit annual mark-ups at 48.9 percent and 15.8 percent, respectively. Faster annual growths were also posted in the indices of other cereals, flour, cereal preparation, bread, pasta and other bakery products at 2.3 percent; fish, 7.6 percent; milk, cheese and egg, 1.2 percent; and oils and fats, 3.9 percent. The rest of the food groups either moved slower or had registered annual declines (Table 10).
- In AONCR, the annual adjustment in food and non-alcoholic beverages index further moved upward by 2.7 percent in June; alcoholic beverages and tobacco index, 6.0 percent; clothing and footwear index, 2.3 percent; housing, water, electricity, gas, and other fuels, 0.5 percent; furnishing, household equipment and routine maintenance of the house index, 2.3 percent; health index, 2.8 percent; and restaurant and miscellaneous goods and services index, 2.8 percent. Slower annual rates were, however, recorded in the indices of transport at 0.2 percent and education, 1.7 percent. The indices of communication and recreation and culture retained their respective previous month’s rates of 0.1 percent and 1.1 percent (Table 8).
The annual change in the food alone index in AONCR picked up by 2.7 percent in June. Its annual growth last month was 2.1 percent and in June 2015, 2.4 percent (Table 13).
The annual rate in vegetables index further increased by 16.6 percent. In addition, higher annual growths were observed in the indices of other cereals, flour, cereal preparation, bread, pasta and other bakery products at 1.3 percent; meat, 1.8 percent; fish, 3.4 percent; milk, cheese and egg, 1.9 percent; oils and fats, 2.6 percent; and fruits, 5.1 percent.
An annual drop of 0.5 percent was still noticed in the rice index. Annual decreases were seen in 11 regions with Bicol Region still registering the lowest growth at -6.4 percent. On the other hand, the highest rate of 4.9 percent remained in Central Visayas.
The annual movement of food products not elsewhere classified index dropped by 2.4 percent. The rest of the food groups had slower annual rates (Table 10).
By Region, Month-on-Month
The month-on-month increase in the prices of consumer items in NCR slowed down to 0.2 percent in June. The index for housing, water, electricity, gas, and other fuels decreased by 0.1 percent. Moreover, movements in the indices of food and non-alcoholic beverages were slower at 0.5 percent; alcoholic beverages and tobacco, 0.6 percent; and clothing and footwear, 0.1 percent. The annual growths in the rest of the commodity groups were either higher or stayed at their previous month’s rate. The index of transport recorded a zero growth during the month.
In AONCR, prices of consumer items rose 0.5 percent in June. A month ago, it was pegged at 0.3 percent. The indices for food and non-alcoholic beverages gained by 0.6 percent in June; clothing and footwear, 0.4 percent; housing, water, electricity, gas, and other fuels, 0.4 percent; education, 1.5 percent; and restaurant and miscellaneous goods and services, 0.4 percent. The rest of the commodity groups had slower increases with the communication index having a zero growth.
Higher growths were observed in ten regions with SOCCSKSARGEN having the highest rate of 0.9 percent. The lowest rate of 0.2 percent was, however, observed in MIMAROPA, Zamboanga Peninsula and ARMM with Caraga posting a zero growth during the period (Table 7).
Among the three big areas of the country, prices of consumer items in Visayas moved faster compared to those in Luzon and Mindanao areas.
By Commodity Group, Month-on-Month
The month-on-month adjustment in consumer prices at the national level inched up 0.4 percent in June. Last month, the growth was 0.3 percent. The index for education climbed by 1.8 percent during the month. Moreover, the index for housing, water, electricity, gas, and other fuels gained by 0.2 percent after it recorded a 0.2 percent drop last month. Higher growths were also seen in the indices of recreation and culture and restaurant and miscellaneous goods and services at 0.4 percent and 0.3 percent, respectively. The other commodity groups either had slower monthly increments or retained their last month’s rate (Table 7).
Prices of tomatoes and onions were higher in many regions as their end of production season resulted to smaller volume of supplies in the markets. Notable upward price adjustments were also registered in cabbage, garlic, carrot and pechay. All these factors contributed to the 4.1 percent growth in the vegetables index in AONCR and 2.3 percent in NCR. At the national level, the index escalated by 3.8 percent.
Lower volume of fish in the markets raised their prices during the month. This factor pushed up the fish index in NCR by 0.4 percent and in AONCR, 0.5 percent. For the Philippines, the fish index picked up 0.5 percent.
With ten regions posting price increases in rice, the group’s index in AONCR inched up 0.2 percent. The highest growth of 0.7 percent was observed in SOCCSKSARGEN. In NCR, the increment in the group’s index was at 1.0 percent. At the country level, the rice index exhibited a 0.2 percent growth during the month.
The meat index in AONCR went up 0.3 percent due to price upticks in fresh meat and canned meat in many regions. On the other hand, the group’s index in NCR dropped by 0.1 percent brought about by cheaper prices of pork. The national index advanced by 0.2 percent.
Higher tuition fees recorded during the month, being the opening of the school year, raised the education index in NCR by 2.6 percent and in AONCR, 1.5 percent. At the national level, the education index accelerated 1.8 percent.
The index for housing, water, electricity, gas and other fuels in AONCR registered a 0.4 percent growth in June due to higher charges in electricity rates and increased prices of LPG and kerosene in many provinces. Upward adjustments in the salaries for selected services for the maintenance and repair of the dwelling units were also noted in some provinces. Meanwhile, the group’s index in NCR declined by 0.1 percent due to lower charges in electricity rates. The monthly change of the group’s index at the country level was 0.2 percent.
Prices of meals eaten outside the home and selected items for personal care and effects were higher in many provinces. Thus, the index for restaurant and miscellaneous goods and services in AONCR went up by 0.4 percent. The group’s index in NCR however, posted a zero growth during the month. The national index gained by 0.3 percent.
Clothing items were priced higher during the month in NCR and in many provinces. Charges in sewing services also increased in some provinces. These factors pushed up the index for clothing and footwear by 0.1 percent in NCR and 0.4 percent in AONCR. At the national level, the increment was recorded at 0.3 percent.
- The second phase price survey report for Basilan and Tawi-tawi were not yet received as of July 4, 2016.
- CPIs and inflation rates by province and selected city are also available upon request at Philippine Statistics Authority, Economic Sector Statistics Service, Price Statistics Division (Telephone Number: 376-19-59).
(Deputy National Statistician)
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