Summary Inflation Report Consumer Price Index (2006=100) : February 2014

FEBRUARY AND JANUARY 2014


Year-on-Year Inflation Rates, All Items
February January Year-to-date
  Philippines
     Headline 4.1 4.2 4.2
     Core 3.0 3.2 3.1
  NCR
     Headline 2.8 2.7 2.7
  AONCR
    Headline 4.5 4.6 4.5

 

  • The year-on-year headline inflation at the national level slowed down to 4.1 percent in February from 4.2 percent in January. This was due to slower annual movements registered in the indices of alcoholic beverages and tobacco and transport. Those for the rest of the commodity groups were either higher or remained their last month’s rate. Inflation in February 2013 was 3.4 percent.

  • Excluding selected food and energy items, core inflation decelerated to 3.0 percent in February from 3.2 percent in January.
  • In the National Capital Region (NCR), annual inflation went up to 2.8 percent in February from 2.7 percent in January. Higher annual gains in the indices of clothing and footwear; housing, water, electricity, gas and other fuels; furnishing, household equipment and routine maintenance of the house; health; recreation and culture; and restaurant and miscellaneous goods and services contributed to the uptrend.

  • Annual inflation In Areas Outside NCR (AONCR) eased to 4.5 percent in February from 4.6 percent in January. It resulted from the slowdown of the inflation in the indices of alcoholic beverages and tobacco; housing, water, electricity, gas and other fuels; and transport.

  • Year-on-Year Inflation Rates in the Philippines, All Items
    January 2009 – February 2014
    (2006=100)

    Month

    Year

    2009 2010 2011 2012 2013 2014
    January

    7.1

    3.9

    4.0

    4.0

     3.1  4.2
    February

    7.2

    3.9

    4.7 2.7 3.4  4.1
    March

    6.7

    3.9

    4.9 2.6 3.2
    April

    5.6

    4.0 4.7 3.0 2.6
    May

    4.3

    3.9 4.9 3.0 2.6
    June

    3.2

    3.6 5.2 2.9  2.7
    July

    2.2

    3.7 4.9 3.2 2.5
    August

    1.7

    4.1 4.6 3.8 2.1
    September

    2.3

    3.8 4.7 3.7 2.7
    October

    2.9

    3.3 5.2 3.2 2.9
    November

    3.5

     3.7 4.7 2.8 3.3
    December

    4.4

    3.6 4.2 3.0 4.1
    Average

    4.2

    3.8 4.6 3.2 3.0

     

Month-on-Month Inflation Rates, All Items
(2006=100)
Feb Jan
  Philippines  0.1  0.7
  NCR  0.0  0.5
  AONCR  0.1  0.6

 

  • The country’s month-on-month inflation improved to 0.1 percent in February from 0.7 percent in January. Price increments noted in food items such as rice, eggs, fresh meat, and powdered milk were tempered by the price decreases in fruits and vegetables. Lower charges in electricity rates and downward price adjustments in LPG also contributed to the downtrend.


    CONSUMER PRICE INDEX
    (2006=100)

    FEBRUARY 2014

   By Region, Year-on-Year

  • Annual inflation in NCR continued to inch up at 2.8 percent in February from 2.7 percent in January.

  • In AONCR, annual inflation decelerated to 4.5 percent in February from 4.6 percent in January. Lower annual growths were observed in nine regions. The lowest rate of 2.7 percent was still posted in Davao while the highest remained in Eastern Visayas at 7.8 percent.

   By Commodity Group, Year-on-Year

  • At the national level, slower annual hikes were correspondingly registered in alcoholic beverages and tobacco and transport indices at 7.1 percent and 1.0 percent in February from their respective January rates of 17.6 percent and 1.2 percent. Meanwhile, higher annual growths were recorded in clothing and footwear index at 3.7 percent from 3.4 percent; housing, water, electricity, gas and other fuels index, 3.6 percent from 3.4 percent; furnishing, household equipment and routine maintenance index, 2.8 percent from 2.6 percent; and health index, 3.3 percent from 3.2 percent. Movements in the other commodity groups remained at their previous month’s rate.

  • The country’s annual inflation for food alone index further accelerated to 5.9 percent in February from 5.7 percent in January.

  • A double-digit annual mark-up was observed in the index of rice at 10.7 percent from 10.0 percent. In addition, a higher annual uptick was also seen in milk, cheese and egg index at 2.3 percent from 2.0 percent; oils and fats index, 1.2 percent from 0.4 percent; fruit index, 5.5 percent from 4.2 percent; sugar, jam, honey, chocolate and confectionery index, 2.4 percent from 2.0 percent; and food products not elsewhere classified index, 3.9 percent from 3.8 percent. The other food groups went up at a slower pace with the meat index retaining its last month’s rate of 2.6 percent.

  • In NCR, the clothing and footwear index grew by 3.6 percent in February from 2.5 percent in January; housing, water, electricity, gas and other fuels index, 2.1 percent from 1.4 percent; furnishing, household equipment and routine maintenance of the house index, 2.7 percent from 2.2 percent; health index, 3.9 percent from 3.6 percent; recreation and culture index, 2.7 percent from 2.3 percent; and restaurant and miscellaneous goods and services index, 0.9 percent from 0.7 percent. The rest of the commodity groups either had slower annual increments or retained their January rates.

    • The food alone index in NCR had a slower annual gain at 4.4 percent in February from 5.1 percent in January.

    • An annual drop of 5.6 percent was still observed in oils and fats index in February from -5.7 percent in January and in fruit index, -0.7 percent from -1.1 percent.  The annual add-on in rice index also decelerated to 13.3 percent from 15.0 percent; fish index, 3.4 percent from 7.0 percent; vegetable index, 7.6 percent from 9.2 percent; and food products not elsewhere classified index, 3.4 percent from 3.9 percent.

    • The other food groups went up at a faster rate.

  • In AONCR, the annual mark-up in alcoholic beverages and tobacco index slowed to 7.0 percent in February from a double-digit annual growth of 19.1 percent in January; housing, water, electricity, gas and other fuels index, 4.1 percent from 4.2 percent; and transport index, 1.0 percent from 1.2 percent. The rest of the commodity groups either have higher annual growths or retained their January rate except for the communication index whose annual change was zero from an annual drop of 0.1 percent.

    • A higher annual inflation was still posted in the food alone index in AONCR at 6.2 percent in February from 5.8 percent in January.

    • The annual gain in the rice index further rose to 10.3 percent in February from 9.4 percent in January as all the regions registered higher annual increases except Davao and ARMM. The biggest annual jump of 1.5 percentage points was seen in Ilocos (9.4% from 7.9%) and Eastern Visayas (14.6% from 13.1%).

    • Except for the indices of corn and meat whose annual upticks were slower at 2.8 percent from their corresponding previous month’s rates of 3.1 percent and 2.9 percent, all the other food groups recorded higher annual mark-ups.

   By Region, Month-on-Month

  • The mixed price trends observed among the commodity groups resulted to a zero monthly growth in the prices of consumer items in NCR during the month from 0.5 percent in January.  The index of alcoholic beverages and tobacco picked up 1.8 percent from 1.5 percent; housing, water, electricity, gas and other fuels index, 0.1 percent from a decline of 0.1 percent; transport index, 0.2 percent from zero growth; and recreation and culture index, 0.7 percent from 0.4 percent. On the other hand, the index of the heavily-weighted food and non-alcoholic beverages dropped by 0.6 percent from 0.9 percent increase. Those for the other commodity groups were slower or remained at their last month’s rate with the index for communication having a zero growth from 0.1 percent.

  • Price increments on consumer items in AONCR further slowed down to 0.1 percent in February from 0.6 percent in January.  A 0.2 percent reduction was posted in the index for housing, water, electricity, gas and other fuels in February from 0.6 percent in January. Moreover, the indices of food and non-alcoholic beverages and clothing and footwear moved up at a slower rate of 0.3 percent from 0.9 percent and 0.5 percent, respectively and furnishing, household  equipment and routine maintenance of the house and health indices, 0.2 percent from 0.4 percent. The index for communication however inched up 0.1 percent from zero growth. The rest of the commodity groups either had zero growth or retained their previous month’s rate.

  • Negative monthly rates were registered in Cagayan Valley (-0.1%) and Central Luzon (-0.2%), the lowest rate among the regions. Moreover, nine regions recorded slower annual add-ons. On the other hand, Caraga had the highest monthly rate of 1.0 percent in February.

  • Among the three big areas of the country, prices of consumer items in Luzon generally remained stable compared to those in Visayas and Mindanao areas.

   By Commodity Group, Month-on-Month

  • The country’s consumer prices gained 0.1 percent in February, slower than the 0.7 percent uptick in January. The index for housing, water, electricity, gas and other fuels went down by 0.2 percent from a 0.5 percent growth last month. Contributing also to the downtrend was the slower monthly gain in the heavily-weighted food and non-alcoholic beverages index at 0.1 percent in February from 0.9 percent in January; clothing and footwear index, 0.5 percent from 0.7 percent; furnishing, household equipment and routine maintenance of the house index, 0.4 percent from 0.6 percent; and health and recreation and culture indices, 0.2 percent from 0.7 percent and 0.3 percent, respectively. The other commodity groups retained their last month’s rate with the communication index recording a zero growth from 0.1 percent.

    • The vegetable index in NCR decreased by 7.6 percent in February from 0.4 percent in January. Sufficient volume of deliveries of vegetables at the NCR markets lowered their prices during the month. The group’s index in AONCR also slowed down to 0.4 percent from 2.1 percent. Higher prices of vegetables in Visayas and Mindanao areas were tempered by the lower prices in Luzon areas. The vegetable index in the Philippines declined by 0.9 percent from 1.8 percent.

    • Abundant supplies of in-season fruits in the markets continued to push down their prices in NCR. Thus, the group’s index in the area and at the national level correspondingly fell by 1.6 percent and -0.3 percent.  In AONCR, the monthly increment in the fruit index eased to 0.1 percent from 1.0 percent due to the negative rates recorded in 10 regions.

    • In AONCR, the rice index went up 0.8 percent from 0.4 percent as eleven regions posted higher price adjustments in rice with the highest rate of 1.2 percent seen in Ilocos, Central Luzon and Eastern Visayas. Similarly, the rice index in NCR continued to climb at 1.1 percent in February from 0.9 percent in January and at the national level, 0.9 percent from 0.5 percent.

    • Upward price adjustments in fresh meat such as chicken and pork raised the meat index in the Philippines by 0.3 percent; NCR, 0.8 percent; and AONCR, 0.2 percent.

    • Higher prices of powdered milk were noted in many regions. Moreover, prices of eggs also went up during the month. Hence, the milk, cheese and egg index at the national level rose 0.4 percent; NCR, 0.5 percent; and AONCR, 0.3 percent.

    • The favorable weather conditions prevailing during the month allowed more fishing trips which resulted to higher volume of fish catch. The improved supply levels of fish species in the markets pulled down its retail prices. The fish index in NCR thereby decreased by 2.1 percent from 5.1 percent gain last month and in AONCR, the growth moved down to 0.4 percent from 1.7 percent. At the national level, the group’s index posted a zero growth from an increment of 2.2 percent in January.

    • Price reductions in cooking oil primarily effected the 0.9 percent decrease in the oils and fats index in NCR. In AONCR, the slower monthly gain in cooking oil effected a lower growth in its group’s index at 0.7 percent from 1.8 percent. Likewise, the oils and fats index at the national level moved up but at a slower pace of 0.3 percent from 1.6 percent.

    • The food products not elsewhere classified index in NCR dropped by 1.5 percent due to downward price adjustments in selected spices and seasonings. In AONCR, higher prices of selected condiments, spices and seasonings resulted to 0.3 percent growth in its group’s index. This was however slower than the 1.3 percent add-on last month. These offsetting price adjustments among the regions caused the national index to post a zero growth from 1.2 percent in the previous month.

  • Lower charges in electricity rates and price rollbacks in LPG pushed down the index for housing, water, electricity, gas and other fuels index in the Philippines (-0.2% from 0.5%) and AONCR by (-0.2% from 0.6%). On the contrary, the groups’ index in NCR inched up 0.1 percent due to the increments in the prices of selected construction materials.

  • With higher prices in some items for personal care and effects in selected regions, the index for restaurant and miscellaneous goods and services in the three areas picked up 0.2 percent.

  • The transport index in the Philippines and NCR rose 0.2 percent and in AONCR, 0.1 percent during the month due to general upward price adjustments in gasoline.

NOTE: 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).

Source – Philippines Statistics Authority

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