Summary Inflation Report Consumer Price Index (2006=100) : May 2016

Reference Number: 

2016-083

Release Date: 

Tuesday, June 7, 2016
 

Year-on-Year Inflation Rates, All Items
  May 2016 Apr 2016 May 2015 Year-to-date
  Philippines        
     Headline 1.6 1.1 1.6 1.3
     Core 1.6 1.5 2.2 1.5
  NCR        
     Headline 1.0 0.4 0.7 0.5
  AONCR        
    Headline 1.7 1.3 1.8 1.4

 

  • The annual headline inflation at the national level stood at 1.6 percent in May 2016.  It was recorded at 1.1 percent a month ago and 1.6 percent in May 2015. Higher annual increments were noted 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; transport; communication; recreation and culture; and restaurant and miscellaneous goods and services. (Table 8).

  • Excluding selected food and energy items, core inflation likewise registered at 1.6 percent in May 2016. Last month, core inflation was at 1.5 percent and in May 2015 was at 2.2 percent (Table 15).

    • In NCR, inflation was at 1.0 percent in May 2016. Last month, inflation in the area was 0.4 percent and in May 2015, 0.7 percent.   This was primarily effected by the higher annual growth in the heavily-weighted food and non-alcoholic beverages index.  Faster annual rates recorded in the indices of alcoholic beverages and tobacco; clothing and footwear; health; and recreation and culture also contributed to the uptrend (Table 8).

    • Following the same trend, inflation in Areas Outside NCR (AONCR) stood at 1.7 percent in May 2016. In April 2016, it was at 1.3 percent and in the same period last year, 1.8 percent. The indices of eight out of the 11 commodity divisions had higher annual rates during the month. (Table 8).

     

    Year-on-Year Inflation Rates in the Philippines, All Items
    January 2011 - May 2016
    (2006=100)

    Month

    Year

    2011 2012 2013 2014 2015 2016
    January

    4.0

    4.0

     3.1  4.2 2.4 1.3
    February 4.7 2.7 3.4  4.1 2.5 0.9
    March 4.9 2.6 3.2 3.9 2.4 1.1
    April 4.7 3.0 2.6 4.1 2.2 1.1
    May 4.9 3.0 2.6 4.5 1.6 1.6
    June 5.2 2.9  2.7 4.4 1.2  
    July 4.9 3.2 2.5 4.9 0.8  
    August 4.6 3.8 2.1 4.9 0.6  
    September 4.7 3.7 2.7 4.4 0.4  
    October 5.2 3.2 2.9 4.3 0.4  
    November 4.7 2.8 3.3 3.7 1.1  
    December 4.2 3.0 4.1 2.7 1.5  
    Average 4.6 3.2 3.0 4.1 1.4  

     

    Month-on-Month Inflation Rates, All Items
    (2006=100)
      May 2016 Apr 2016
      Philippines 0.3   0.2
      NCR 0.3    0.3
      AONCR 0.3   0.2

     

    • Prices of consumer items at the country level generally went up by 0.3 percent in May 2016. This was primarily due to higher prices of the heavily-weighted food items particularly vegetables, meat, fish and rice.  Also contributing to the uptrend were the upward adjustments in the prices of alcoholic beverages, cigarettes, kerosene, gasoline, diesel, and selected construction materials in many regions. Air and ship fare hikes were also noted in selected regions during the month.


      CONSUMER PRICE INDEX
      (2006=100)
      MAY 2016

       By Region, Year-on-Year

    • Inflation in NCR rose 1.0 percent in May 2016.
    • Similarly, inflation in AONCR gained 1.7 percent in May 2016.  Ten regions recorded higher annual increments during the month.  Moreover, CALABARZON and Bicol Region had positive annual growths after they registered negative rates last month. The highest annual inflation of 3.4 percent was seen in Zamboanga Peninsula while the lowest was noted in CALABARZON at 0.4 percent.

       By Commodity Group, Year-on-Year

    • At the national level, annual mark-ups were higher in the indices of eight out of the 11 commodity divisions. In addition, the transport index posted a 0.1 percent annual uptick from a zero growth last month. The index of education retained its last month’s rate of 3.6 percent while the index of housing, water, electricity, gas, and other fuels continued to exhibit negative annual rate at -1.2 percent (Table 8).

    • On an annual basis, the country’s food alone index accelerated by 2.4 percent in May 2016.  A month ago, it was pegged at 1.7 percent and in May 2015, 3.2 percent (Table 13).

    • A double-digit annual growth of 12.7 percent was recorded in the vegetables index. Faster annual add-ons were also noticed in the indices of other cereals, flour, cereal preparation, bread, pasta and other bakery products at 1.4 percent; meat, 2.3 percent; fish, 2.9 percent; milk, cheese and egg, 1.5 percent; oils and fats, 2.3 percent; and fruits, 4.0 percent. Slower annual hike was, however, seen in corn at 2.5 percent while annual declines were observed in the indices of rice at -0.8 percent and food products not elsewhere classified, -1.2 percent (Table 10).

    • In NCR, the annual growth in food and non-alcoholic beverages index jumped by 3.7 percent; alcoholic beverages and tobacco index, 3.5 percent; clothing and footwear index, 3.0 percent; health index, 1.8 percent; and recreation and culture index, 2.7 percent. The other commodity groups retained their last month’s rate except for the indices of housing, water, electricity, gas, and other fuels  and transport which continued to post annual decreases of 2.9 percent and 1.0 percent, respectively (Table 8).

      • The food alone index in NCR further increased by 3.9 percent.  Last month, it inched up by 2.7 percent and in May 2015, 2.1 percent (Table 13).

      • Higher annual upticks were noted in the indices of other cereals, flour, cereal preparation, bread, pasta and other bakery products at 2.1 percent; meat, 5.1 percent; fish, 5.9 percent; milk, cheese and egg, 1.1 percent; oils and fats, 2.5 percent; and vegetables, 13.9 percent.  Meanwhile, the rest of the food groups either decreased or had lower annual add-ons (Table 10).

    • In AONCR, the annual growth in food and non-alcoholic beverages index gained momentum at 2.0 percent; alcoholic beverages and tobacco index, 5.9 percent; clothing and footwear index, 2.2 percent; furnishing, household equipment and routine maintenance of the house index, 2.0 percent; health index, 2.6 percent; transport index, 0.4 percent; communication index, 0.1 percent; and restaurant and miscellaneous goods and services index, 2.5 percent. The indices of recreation and culture and education retained their last month’s rates of 1.1 percent and 3.1 percent, respectively. For four consecutive months now, the index for housing, water, electricity, gas, and other fuels continued to move down as it recorded negative annual rate at -0.5 percent (Table 8).
      • The annual change in the food alone index in AONCR climbed by 2.1 percent in May. Its annual growth last month was 1.5 percent and in May 2015, 3.4 percent (Table 13).

      • The vegetables index further moved upward as it registered double-digit annual mark-up of 12.5 percent.  Moreover, faster annual upticks were observed in the indices of meat at 1.5 percent; fish, 2.5 percent; milk, cheese and egg, 1.6 percent; oils and fats, 2.2 percent; and fruits, 3.1 percent.

      • The rice index was still on a downtrend as its annual change was posted at -0.7 percent. Ten regions registered annual declines with the lowest annual rate remaining in Bicol Region at -7.2 percent.  The highest annual growth of 3.8 percent was, however, noted in Central Visayas.

      • Likewise, the index of food products not elsewhere classified dropped by 0.3 percent.  The rest of the food groups had slower annual hikes (Table 10).

       By Region, Month-on-Month

  • Prices of consumer items in NCR went up 0.3 percent in May. This was the same rate recorded last month. The uptrend was mainly due to the 1.0 percent mark-up in the indices of food and non-alcoholic beverages and alcoholic beverages and tobacco.  In addition, the clothing and footwear index moved at a faster rate by 1.5 percent; and recreation and culture index, 0.7 percent. The index of transport also posted a 0.5 percent growth from -0.5 percent last month. The other commodity groups either registered slower annual rate or had zero growth.

  • Consumer prices in AONCR likewise rose 0.3 percent in May.  Last month, the growth was 0.2 percent. This was primarily effected by the 0.5 percent uptick in food and non-alcoholic beverages index. A faster monthly rate of 0.4 percent was also seen in the indices of furnishing, household equipment and routine maintenance of the house; health; and transport.  Moreover, the communication index inched up 0.1 percent during the month.  The rest of the commodity groups either recorded slower increases or had a zero growth during the month.

  • Eleven regions had higher monthly price gains during the month.  Negros Island Region had the highest rate at 0.8 percent while the lowest growth of 0.1 percent was observed in CALABARZON and Davao Region (Table 7).

  • Among the three big areas of the country, prices in Visayas and Mindanao were generally higher compared to those in Luzon areas.

  •    By Commodity Group, Month-on-Month

    • Prices of consumer items at the national level advanced by 0.3 percent in May.  This was primarily brought about by the 0.6 percent add-on in food and non-alcoholic beverages index. In addition, higher annual growth rates were seen in the indices of alcoholic beverages and tobacco at 0.5 percent; clothing and footwear, 0.6 percent; and furnishing, household equipment and routine maintenance of the house, 0.3 percent.  The indices of transport, likewise, increased by 0.4 percent and communication, 0.1 percent from a zero growth last month.  On the other hand, a slower monthly increment was posted in restaurant and miscellaneous goods and services index at 0.1 percent. The other commodity groups maintained their last month’s rates while the housing, water, electricity, gas, and other fuels index dropped by 0.2 percent (Table 7).

      • Lesser volume of deliveries of some vegetables in the markets pushed up its prices during the month.  Moreover, the hot weather conditions experienced this month resulted to high spoilage of some vegetables.  All these factors triggered higher prices of selected vegetables in many regions. In addition, the end of harvest season of onions brought less supply in the markets. Thus, the vegetables index in NCR accelerated by 3.6 percent and in AONCR, 4.1 percent. At the national level, the group’s index moved up by 3.9 percent.

      • Bigger demand for meat brought about by celebration of fiestas raised the meat index by 1.7 percent in NCR and 0.3 percent in AONCR.  The group’s index at the country level advanced by 0.6 percent.

      • The rice index in NCR rose 0.2 percent as glutinous rice was generally priced higher during the month.  In AONCR, the group’s index inched up by 0.1 percent. For the Philippines, the group’s index moved by 0.1 percent.

      • The fish index in NCR and AONCR climbed by 1.6 percent and 0.4 percent, respectively, as lesser supply of selected fish species in the markets caused the prices to move up. At the national level, the group’s index went up by 0.5 percent.

      • Sufficient supply of locally grown fruits like mango, banana and pineapple generally pushed down their prices in many regions.  Hence, the fruits index in NCR decreased by 1.7 percent and in AONCR, -0.6 percent. The group’s index at the national level dropped by 0.8 percent (Table 9).

    • Price hikes in gasoline and diesel and higher air and ship fares in NCR and in many provinces raised the transport index in NCR by 0.5 percent and in AONCR, 0.4 percent.  The national index rose 0.4 percent.

    • The index for housing, water, electricity, gas, and other fuels in NCR declined by 0.7 percent due to lower charges in electricity rates during the month.  In AONCR, the group’s index, however, inched up 0.1 percent.  This was brought about by higher prices of LPG and kerosene and increased salaries of selected construction workers in many provinces. For the Philippines, the group’s index decreased by 0.2 percent.

    • With the increased prices of clothing items and higher charges of sewing services, the index for clothing and footwear grew by 1.5 percent in NCR and 0.2 percent in AONCR. At the national level, the increment was recorded at   0.6 percent.

    • Price add-ons in selected alcoholic beverages and cigarettes in NCR resulted to a 1.0 percent growth in alcoholic beverages and tobacco index in the area. Similarly, cigarettes were also priced higher in some provinces. Thus, the group’s index in AONCR rose 0.4 percent during the month. At the national level, the index moved up by 0.5 percent (Table 7).

    Notes:

    1. The second phase price survey report for Tawi-tawi was not yet received as of June 6, 2016.
       
    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.
                                                                   National Statistician

     

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