Summary Inflation Report Consumer Price Index (2006=100): December 2017

Reference Number: 

2018-001

Release Date: 

Friday, January 5, 2018

YEAR-ON-YEAR

Philippines2012 Census of Agriculture and Fisheries

At the country level, the annual headline inflation was registered at 3.3 percent in December 2017. It was the same rate recorded in the previous month. In December 2016, inflation was pegged at 2.6 percent. Mixed movements in the annual growths among the commodity groups were noticed during the month. Higher annual mark-ups were posted in the indices of the following commodity groups:

  • Food and Non-alcoholic Beverages (3.5%);
  • Alcoholic Beverages and Tobacco (6.4%);
  • Furnishing, Household Equipment and Routine Maintenance of the House (1.9%); and
  • Restaurant and Miscellaneous Goods and Services (3.0%).

Annual inflation in the rest of the commodity groups either decelerated or remained at their previous month’s rates (see Tables 6 and 8).

The annual average headline inflation rate for 2017 was registered at 3.2 percent. This was higher compared to 1.8 percent in 2016 (see Table 6).2012 Census of Agriculture and Fisheries

The index for housing, water, electricity, gas and other fuels exhibited an annual average growth of 3.2 percent in 2017 from -0.2 percent in the previous year. Compared with their 2016 rates, the indices of the following commodity groups likewise exhibited higher annual average growths:

  • Food and Non-Aalcoholic Beverages (3.7%);
  • Alcoholic Beverages and Tobacco (6.2%);
  • Furnishing, Household Equipment and Routine Maintenance of the House (2.1%);
  • Transport (3.3%);
  • Communication (0.2%); and
  • Restaurant and Miscellaneous Goods and Services (2.2%).

Meanwhile, slower annual average rates were recorded in the other commoditiy groups with the health index retaining its previous year’s figure of 2.4 percent (see Table 6).

Excluding selected food and energy items, core inflation, moved  up at a slower pace of 3.0 percent in December 2017. In the previous month, it was pegged at 3.3 percent and in December 2016, 2.5 percent.  The annual average core inflation for the year was 2.9 percent and in 2016, 1.9 percent (see Table 15).

The annual growth in the country’s food alone index advanced by 3.7 percent in December 2017. It was posted at 3.3 percent in the previous month while it was the same rate in December 2016. The annual average hike of the food alone index at 3.8 percent in 2017 was higher compared to 2.6 percent in 2016 (see Table 13).

Higher annual increments were observed in the indices of the following food groups:

  • Rice (1.1%);
  • Corn (7.2%);
  • Other Cereals, Flour, Cereal Preparation, Bread,  Pasta and Other Bakery Products (1.9%);
  • Meat (5.9%);
  • Fish (10.0%); and
  • Fruits (4.2%).

On the other hand, a slower annual increase of 1.1 percent was noted in the index for food products not elsewhere classified. Annual growths in the rest of the food groups either went down or remained at their previous month’s rates (see Table 10).

 
Year-on-Year Inflation Rates in the Philippines, All Items
January 2012 - December 2017
(2006=100)

Month

Year

2012 2013 2014 2015 2016 2017
Jan 4.0 3.1 4.2 2.4 1.3 2.7
Feb 2.7 3.4 4.1 2.5 0.9 3.3
Mar 2.6 3.2 3.9 2.4 1.1 3.4
Apr 3.0 2.6 4.1 2.2 1.1 3.4
May 3.0 2.6 4.5 1.6 1.6 3.1
Jun 2.9  2.7 4.4 1.2 1.9 2.7
Jul 3.2 2.5 4.9 0.8 1.9 2.8
Aug 3.8 2.1 4.9 0.6 1.8 3.1
Sep 3.7 2.7 4.4 0.4 2.3 3.4
Oct 3.2 2.9 4.3 0.4 2.3 3.5
Nov 2.8 3.3 3.7 1.1 2.5 3.3
Dec 3.0 4.1 2.7 1.5 2.6 3.3
Ave 3.2 3.0 4.1 1.4 1.8 3.2

 

National Capital Region (NCR)

Inflation in NCR,  however, eased to 4.6 percent in December 2017. In the previous month, it was recorded at 4.9 percent and in December 2016, 2.7 percent. The downtrend was due to the slowdowns in the annual growths seen in the indices of the following commodity groups:

  • Alcoholic Beverages and Tobacco (7.8%);
  • Clothing and Footwear (2.0%);
  • Housing, Water, Electricity, Gas and Other Fuels (4.2%); and
  • Transport (8.8%).

On the other hand, higher annual mark-ups were observed in the indices of food and non-alcoholic beverages at 4.0 percent and restaurant and miscellaneous goods and services, 7.6 percent. The other commodity groups retained their previous month’s rates (see Tables 6 and 8).

The annual average inflation in the area stood at 4.0 perent in 2017. In the previous year, it was 1.2 percent (see Table 6).

Areas Outside NCR (AONCR)

Annual inflation in AONCR went up to 2.9 percent in December 2017. It was registered at 2.8 percent in the previous month and 2.6 percent during the same period a year ago. The annual growth in food and non-alcoholic beverages index picked up by 3.4 percent; alcoholic beverages and tobacco index, 6.2 percent; and furnishing, household equipment and routine maintenance of the house index, 1.8 percent. The rest of the commodity groups either moved up at slower pace or retained their previous month’s rates (see Tables 6 and 8).

Five regions exhibited higher annual inflation during the month. The Autonomous Region of Muslim Mindanao (ARMM) still recorded the highest annual gain of 5.3 percent while the lowest annual rate was noted in Cordillera Administrative Region at 1.8 percent (see Table 8).

The annual average inflation in AONCR increased to 2.9 percent in 2017. In 2016, the annual average inflation was posted at 1.9 percent (see Table 6).

MONTH-ON-MONTH2012 Census of Agriculture and Fisheries

Price increments in consumer items in the Philippines decelerated to 0.3 percent in December. The rate in the previous month was pegged at   0.5 percent. This can be attributed to the 0.1 percent decline in the index for housing, water, electricity, gas and other fuels. On the other hand, the monthly adjustments in the indices of alcoholic beverages and tobacco were higher at 0.9 percent and furnishing, household equipment and routine maintenance of the house, 0.2 percent. The rest of the commodity groups retained their previous month’s rates (see Tables 5 and 7).

Lower charges for the electricity rates and decreases in the prices of selected construction materials were noted in NCR and in many provinces. Likewise, prices of LPG and kerosene went down in many provinces during the month.

Meanwhile, higher demand for fish products resulted to price hikes particularly on fresh fish, shrimps and crabs. Moreover, the difficulty in catching fish due to bad weather conditions brought about by typhoons “Urduja” and “Vinta” limited the volume of fish supply in the markets. Hence, its prices went up in many regions. Similarly, bigger demand for meat and fruits during the holiday season also pushed up their prices.

Upward price adjustments were also noticed in meals eaten outside the home and in some items for personal care and effects in selected regions. In addition, gasoline and diesel were priced higher nationwide. Increased airplane fares in many provinces and in NCR were also observed during the period.

Notes:

  1. Price movements of the commodities from the sample municipalities of Lanao del Sur were used to impute the prices for Marawi City for December 2017.
  2. 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).

 

 

(Sgd) LISA GRACE S. BERSALES, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
 

 

 

 

 

 

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