The Consumer Price Index in the Philippines (2006=100) : 2014 Annual Report

Reference Number: 

2015-028

Release Date: 

Wednesday, April 22, 2015

 

  • The Philippines’ annual average inflation in 2014 accelerated.

The annual average consumer price index (CPI) in 2014 was posted at 139.5 for the Philippines, 130.5 for the National Capital Region (NCR) and 142.4 for areas outside NCR (AONCR).

The country’s annual average inflation climbed to 4.1 percent in 2014. Its average inflation in 2013 was registered at 3.0 percent. Higher annual average gains were recorded in the heavily-weighted food and non-alcoholic beverages index; housing, water, electricity, gas and other fuels index; health index; transport index; and education index. The highest inflation during the year 2014 was in July and August at 4.9 percent while the lowest rate was in December at 2.7 percent.

  • All the regions recorded faster annual mark-ups.

The annual average inflation in NCR increased to 3.2 percent in 2014. It was observed at 1.6 percent in 2013.

Likewise, the annual average inflation in AONCR rose 4.5 percent in 2014. Last year, it was pegged at 3.3 percent.

Among the regions in AONCR, the highest annual average inflation in 2014 was noticed in Region VIII (Eastern Visayas) at 7.0 percent while the lowest was seen in Region III (Central Luzon) and Region XI (Davao Region) at 3.6 percent.

By Commodity Group

  • A faster annual increment in the heavily-weighted food and non-alcoholic beverages index pushed up the country’s inflation in 2014.

          At the national level, the annual average hike in food and non-alcoholic beverages index was higher at 6.7 percent in 2014; housing, water, electricity, gas and other fuels index, 2.3 percent; health index, 3.3 percent; transport index, 0.9 percent; and education index, 4.9 percent. Slowdowns in the annual average increases were however, posted in all the other commodity groups except in communication index which had a zero growth.

          Similarly, higher annual average growths were noticed in all the commodity groups in NCR except in the indices of alcoholic beverages and tobacco; furnishing, household equipment and routine maintenance of the house; and communication. The indices of alcoholic beverages and tobacco and furnishing, household equipment and routine maintenance of the house had slower annual average rates of 5.8 percent and 3.6 percent, respectively while the index for communication retained its last year’s rate of 0.2 percent.

          The food and non-alcoholic beverages index in AONCR registered a higher annual average uptick at 6.8 percent in 2014. Moreover, faster annual rates were seen in the indices of housing, water, electricity, gas, and other fuels and education at 2.7 percent and 4.9 percent, respectively. The annual average movement in the transport index remained at 0.9 percent while the communication index had a zero growth. The rest of the commodity groups exhibited lower annual average gains during the year.

 

 
 

   

  • Higher year-on-year growths were observed in food prices in 2014.
 

          The annual average mark-ups in food and non-alcoholic beverages index in 2014 were higher in all the regions with the highest annual average rate posted in Region VIII (Eastern Visayas) at 9.3 percent. Meanwhile, CAR had the lowest growth at 4.2 percent.

          The general upward adjustments in the prices of rice during the year in all the regions resulted to double-digit annual average increase of the rice index in the Philippines at 11.6 percent; NCR, 14.4 percent; and in AONCR, 11.3 percent. The highest annual average uptick in the rice index was still noted in Region V (Bicol Region) at 13.8 percent while the lowest was in ARMM at 5.5 percent.

          Increases in the prices of corn in the markets triggered higher annual average growth rates of the corn index in eleven regions including NCR. Thus, the annual average rate of the group’s index in Philippines jumped by 6.1 percent; NCR, 5.4 percent; and AONCR, 6.2 percent. The highest annual average gain was in Region X (Northern Mindanao) at 9.1 percent. Region IV-A (CALABARZON), however posted the lowest annual average rate at -1.5 percent.

          The annual average growth in the meat index in the Philippines rose 4.4 percent in 2014; NCR, 4.6 percent; and AONCR, 4.3 percent. On the average, prices of chicken, pork, beef, processed meat and meat products and canned meat went up during the year.

          The low volume of catch of selected fish species brought about by the difficulty of fishermen in catching fish due to typhoons that hit selected regions of the country particularly in the months of January, July, August and December limited fish supply in the markets. Thus, the annual average change of the fish index in the Philippines accelerated by 5.2 percent; NCR, 6.8 percent; and AONCR, 5.0 percent. The highest annual average rate of 8.9 percent was seen in Region VII (Central Visayas) and Region VIII (Eastern Visayas) while the lowest annual average growth was noted in Region X (Northern Mindanao) at 1.8 percent.

          Add-ons in the prices of milk, cheese and egg in many regions caused the year-on-year average growth of the group’s index in the Philippines to climb by 3.5 percent; NCR, 4.8 percent; and AONCR, 3.2 percent.

          Price hikes in cooking oil primarily pushed up the annual average rates of oils and fats index in the Philippines and AONCR by 4.9 percent and 6.7 percent, respectively. Increments in the prices of margarine and butter in selected regions also contributed to the uptrend. Region III (Central Luzon) had the highest annual average rate at 12.3 percent while the lowest of -0.3 percent was in Region I (Ilocos). On the other hand, the group’s index in NCR continued to record a negative rate as its index had an annual average decline of 1.4 percent. The price of cooking oil went down in the area during the year.

          The annual average change of the fruit index in AONCR grew by 8.7 percent. This was brought about by the price additions in papaya, banana, mango, pineapple and canned fruits. The highest annual average growth of 15.3 percent was registered in Region VII (Central Visayas) while the lowest was seen in Region X (Northern Mindanao) at 0.5 percent.

          The year-on-year average growth of the vegetables index in the Philippines jumped by 9.3 percent in 2014; NCR, 5.7 percent; and AONCR 10.0 percent. This was mainly due to the upsurge in the prices of garlic. Low supplies of vegetables in the markets caused by high spoilage of some vegetables brought by the extreme heat in May were also noted. In addition, limited supply of vegetables from the provinces hit by typhoon “Glenda” in July also contributed to the upward price adjustments of vegetables. The highest annual average change was noted in Region IX (Zamboanga Peninsula) at 21.7 percent while the lowest was in CAR (Cordillera Administrative Region) at 4.3 percent.

          Upticks in the prices of sugar resulted to faster annual average increase of sugar, jam, honey, chocolate and confectionery index in the three areas: Philippines, 5.2 percent; NCR, 3.4 percent; and AONCR, 5.4 percent. Region XII (SOCCSKSARGEN) recorded the highest annual average growth of 8.9 percent while the lowest was in CAR (Cordillera Administrative Region) at 2.5 percent. Price add-ons in selected sugar products were also noticed during the year.

          The acceleration in the prices of ginger mainly effected the 7.6 percent annual average growth in food products not elsewhere classified index in the Philippines; 9.2 percent in NCR; and 7.2 percent in AONCR. The highest annual average mark-up of 14.5 percent was noticed in Region IX (Zamboanga Peninsula) while the lowest annual average rate of 3.9 percent was in Region IV-B (MIMAROPA). Prices of selected sauces, condiments and seasonings were also higher in many regions.

     

  • Faster annual average increment in housing, water, electricity, gas and other fuels index largely contributed to higher inflation during the year.

          After a full year of implementation of the sin tax law, the annual average rates in alcoholic beverages and tobacco index in the three areas decelerated in 2014: Philippines, 5.2 percent; NCR, 5.8 percent; and AONCR, 5.1 percent. In 2013, their corresponding annual average growths were at 29.8 percent; 16.9 percent; and 32.3 percent. Slowdowns in the annual average rates were noted in all the regions with SOCCSKSARGEN recording the lowest rate of 1.4 percent. Meanwhile, the highest annual average uptick was seen in Region VIII (Eastern Visayas) at 14.4 percent.

          The annual average growth of clothing and footwear index in AONCR slowed to 3.2 percent in 2014 as ten regions generally had lower annual average rates. This was attributed to slower annual average increments in clothing and footwear items during the year. The lowest annual average increase was recorded in Region VI (Western Visayas) at 1.2 percent while the fastest rate was in Region VII (Central Visayas).  On the contrary, the group’s index in NCR posted a higher annual average add-on of 3.9 percent in 2014 due to faster annual movements in the prices of clothing items. At the national level, its annual average rate eased to 3.5 percent.

          In 2014, annual average growth of housing, water, electricity, gas and other fuels in the Philippines picked up by 2.3 percent; NCR, 1.1 percent; and AONCR, 2.7 percent. This was mainly due to increases in the charges of electricity rates. Also contributing to the uptrend were price mark-ups in selected construction materials, LPG, kerosene and firewood. Price hikes in charcoal were also noted in many regions. The highest annual average rate in the group’s index was recorded in Region XII (SOCCSKSARGEN) at 6.8 percent while the lowest was in ARMM at 1.1 percent.

          Slower upward price adjustments in selected furniture and furnishings, household appliances, glassware and household utensils, and non-durable household goods such as cleaning and maintenance household products were generally noticed during the year. Similarly, the same trend was noted in the salaries of household helps in many regions.  Hence, the annual average growth in furnishings, household equipment and routine maintenance of the house index in AONCR and NCR correspondingly decelerated to 2.3 percent and 3.6 percent. Ten regions had slower annual average rates with Region III (Central Luzon) registering the slowest at 1.0 percent while Region IX (Zamboanga Peninsula) had the fastest annual average rate at 5.1 percent.  At the national level, the annual average growth of the group’s index improved to 2.7 percent in 2014.

          With price increases in medicines, the annual average add-on in the health index in NCR was faster at 4.6 percent during the year. In AONCR, the growth in the group’s index, however, decelerated to 2.9 percent as slower annual average rates were recorded in selected medicines and in the charges for selected medical services. The lowest annual average growth of 0.9 percent was in Region IV-B (MIMAROPA) while the highest was in Caraga at 4.4 percent. At national level, the annual average growth of the health index was pegged at 3.3 percent.

          The annual average increase in the transport index in the Philippines, NCR and AONCR was observed at 0.9 percent. This was primarily due to the upticks in the prices of gasoline, diesel and engine oil in 2014. Increased jeepney fares in NCR and in selected provinces also contributed to the uptrend. The highest annual average rate was in Region III (Central Luzon) at 1.6 percent while the lowest was in Region V (Bicol) at 0.1 percent.

          The annual average rate in the communication index in NCR remained at 0.2 percent as growths were posted in the charges for telephone/telefax services and in the repair of mobile/cellular phones. On the average, prices of prepaid cards and e-load in NCR also went up in 2014. On the other hand, a zero growth was recorded in the group’s index in AONCR. Higher charges in courier services in most of the regions were offset by the declines in the prices of mobile cellular phones and cellular prepaid cards in selected provinces. The lowest annual average rate of -1.1 percent was noted in Region III (Central Luzon) while the highest annual average growth was in Region IX (Zamboanga Peninsula) at 1.8 percent. The national index had a zero growth in 2014.

          Compared to 2013, price increments in selected equipment, recreational items and school supplies in NCR were higher in 2014. Thus, the annual average growth in recreation and culture index in the area moved up at a faster rate of 2.5 percent. In AONCR, the annual average hike in the group’s index slowed down to 1.6 percent due to slower increments in movie admission fees and in the prices of selected recreational items. Slowdowns in price increases were also noticed in lotto tickets. The lowest annual average of 0.3 percent was in Region VII (Central Visayas) while the highest was in Region XI (Davao) at 2.4 percent. In the Philippines, its annual average growth settled to 1.9 percent.

          The annual average growth of the education index in 2014 in the Philippines escalated to 4.9 percent; NCR, 5.2 percent; and AONCR, 4.9 percent.  Annual upward adjustments in tuition fees this year were generally higher compared to those in 2013. The highest annual average growth of 7.1 percent remained in Region III (Central Luzon) while Caraga Region had the lowest annual average rate at 1.8 percent.

          The restaurant and miscellaneous goods and services index in AONCR recorded a slower annual average growth of 2.2 percent in 2014. This was brought about by the lower annual increases in the prices of meals eaten outside the home in many regions. Moreover, price add-ons were also slower in selected items for personal care and effects in some regions. The annual average growth of the group’s index in NCR, however, moved up by 1.3 percent due to bigger annual price gains in selected items for personal care and effects. Meals eaten outside were also priced higher during the year. At the national level, the annual average growth of the group’s index decelerated to 1.9 percent.

    

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CPIs and inflation rates by province and selected city are also available upon request at PSA, Industry and Trade Statistics Department, Economic Indices and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).

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