1Q14 Consumer Price Index for Bottom 30% Income Households

Manila—(PHStocks)—Philippine Statistics Office—Inflation for the bottom 30% income households picked up to 5.7 percent for the first quarter of 2014 from 4.8 percent in the last quarter of 2013. This was effected by higher quarterly average inflation recorded in food, beverages and tobacco (FBT); clothing; housing and repairs (H&R); fuel, light and water (FLW); and services indices. The first quarter average inflation in 2013 was 3.5 percent.

Similarly, inflation in National Capital Region (NCR) was faster at 4.6 percent in the first quarter of 2014 from 3.5 percent in the fourth quarter of 2013 mainly due to a higher annual increment in the heavily-weighted FBT index during the quarter.  Also contributing to the uptrend were higher annual growths in clothing; FLW; services; and miscellaneous indices.

Inflation in Areas Outside the National Capital Region (AONCR) went up to 5.7 percent in the first quarter of 2014 from 4.8 percent in the fourth quarter of 2013. It resulted from the higher annual adjustments observed in the indices of all the commodity groups except in miscellaneous index.

The quarter-to-quarter inflation for the bottom 30% income households in the Philippines grew by 1.9 percent in the first quarter of 2014 from 1.6 percent in the last quarter of 2013. Price hikes were noted in selected food items such as cereal and cereal preparation, rice, fish, fruits, vegetables, spices and seasonings.  Alcoholic beverages were also priced higher during the quarter.  In addition, price gains in LPG, kerosene, selected construction materials and higher salaries of plumbers, carpenters and electricians were observed in most of the regions.

By Region, Year-on-Year

Inflation in NCR accelerated to 4.6 percent in the first quarter of 2014 from 3.5 percent in fourth quarter of 2013.

Likewise, inflation in AONCR advanced to 5.7 percent during the quarter from 4.8 percent in the last quarter of 2013. Twelve regions posted faster inflation rates with Eastern Visayas recording the highest annual rate of 10.5 percent. The lowest annual change was in ARMM at 3.0 percent.

By Commodity Group, Year-on-Year

The quarterly annual increment in FBT index in the Philippines was registered at 6.6 percent in the first quarter 2014 from its last quarter rate of 5.7 percent; clothing index, 2.1 percent from 1.9 percent; H&R index, 2.9 percent from 2.5 percent; FLW index, 4.2 percent from 2.4 percent; and services index, 2.2 percent from 2.1 percent. Quarterly inflation in the miscellaneous index remained at 1.7 percent.

The inflation in the heavily-weighted food alone index at the national level went up to 6.5 percent during the quarter from 4.8 percent in the fourth quarter of 2013.

A higher annual hike was posted in rice index at 10.7 percent in the first quarter of 2014 from 8.5 percent in fourth quarter of 2013; cereal preparations index, 2.9 percent from 2.5 percent; dairy products index, 1.6 percent from 1.1 percent; eggs index, 2.6 percent from 1.4 percent; fish index, 4.5 percent from 3.9 percent; fruits and vegetables index, 8.6 percent from 4.8 percent; meat index, 3.6 percent from 3.1 percent; and miscellaneous foods index, 3.0 percent from 0.7 percent.  The corn index retained its last quarter’s rate of 4.9 percent.

In NCR, the annual adjustment in FBT index picked-up 5.7 percent in the first quarter of 2014 from 4.7 percent in the previous quarter.  Faster annual mark-ups were likewise observed in the rest of the commodity groups except in H&R index whose annual increase slowed to 0.3 percent from 0.6 percent.

The food alone index in NCR gained 5.6 percent annual growth in the first quarter of the year from 4.2 percent in fourth quarter of 2013.

A double-digit annual increase was still noted in rice index at 17.3 percent in the first quarter of 2014 from 12.6 percent from the last quarter. In addition, quarterly average annual uptick was higher in corn index at 8.6 percent from 6.9 percent; cereal preparations index, 3.0 percent from 1.4 percent; eggs index, 1.5 percent from 0.6 percent; fish index, 4.6 percent from 1.1 percent; meat index, 1.9 percent from 1.4 percent; and miscellaneous foods index, 1.5 percent from 1.0 percent.  On the other hand, the annual uptick in fruits and vegetables index eased to 8.0 percent from 11.4 percent while the dairy products index recorded a zero growth from -1.1 percent.

In AONCR, the annual change in FBT index escalated by 6.6 percent in the first quarter of 2014 from 5.7 percent in the last quarter of 2013; clothing index, 2.1 percent from 2.0 percent; H&R index, 3.0 percent from 2.5 percent; FLW index, 4.2 percent from 2.5 percent; and services index, 2.3 percent from 2.1 percent.  However, the miscellaneous index moved up but at a slower rate of 1.6 percent from 1.8 percent.

The food alone index in AONCR rose 6.5 percent in the first quarter of 2014 from 4.8 percent in the fourth quarter last year.

The annual growth in the rice index went up 10.6 percent in the first quarter of 2014 from 8.4 percent last quarter as 10 regions recorded double-digit annual increments. The biggest jump of 9.2 percentage points was noted in Eastern Samar (15.8% from 6.6%).

The annual movement in the cereal preparations index climbed to 2.9 percent during the quarter from 2.6 percent in the fourth quarter of 2013; dairy products index, 1.6 percent from 1.1 percent; eggs index, 2.7 percent from 1.5 percent; fish index, 4.5 percent from 3.9 percent; fruits and vegetables index, 8.6 percent from 4.7 percent; meat index, 3.7 percent from 3.2 percent; and miscellaneous foods index, 3.1 percent from 0.7 percent.  Meanwhile, the corn index retained its last quarter’s rate of 4.9 percent.

By Region, Quarter-to-Quarter

 

Increases in consumer prices for this particular income group in NCR decelerated to 1.2 percent in the first quarter 2014 from 2.3 percent in the fourth quarter of 2013.  Slower quarterly growth of 1.2 percent was registered in the heavily-weighted FBT index during the quarter from 2.7 percent in the previous quarter and in FLW index, 1.6 percent from 2.0 percent. The rest of the commodity groups had higher quarterly gains.

On the other hand, price movements in AONCR was faster at 1.9 percent in the first quarter of 2014 from 1.6 percent in the fourth quarter of 2013.  The indices of FBT, clothing, H&R and services posted higher quarterly hikes.  Those for FLW and miscellaneous indices remained at their respective previous quarter’s rates.

Higher quarterly gains were seen in seven regions. The highest rate of 4.7 percent was noticed in Eastern Visayas while the lowest was in ARMM at 0.6 percent.

Among the three big areas of the country, price upticks in consumer items in Visayas were faster compared to Luzon and Mindanao areas.

By Commodity Group, Quarter-to-Quarter

Measured from the previous quarter, prices of items for this group of consumers in the Philippines picked up 1.9 percent in the first quarter 2014 from 1.6 percent in the fourth quarter of 2013.  The FBT index accelerated  2.1 percent from 1.9 percent; clothing index, 0.7 percent from 0.3 percent; H&R index, 1.0 percent from 0.3 percent; services index, 0.3 percent from 0.1 percent; and miscellaneous index, 0.4 percent from 0.3 percent. Movement in the FLW index remained at 1.8 percent.

The favorable weather conditions that prevailed during the quarter in production areas in Luzon improved harvests of vegetables, hence, the fruits and vegetables index in NCR declined by 8.6 percent.  Meanwhile, the inclement weather conditions during the month of January in Eastern Visayas and Mindanao generally effected faster price increments in the fruits and vegetables index during the quarter.  This factor primarily contributed to the 3.7 percent quarterly growth of the group’s index in AONCR. At the national level, the fruits and vegetables index had a quarterly rate of 3.6 percent.

The difficulty in catching fish species in the cold mornings in January and February lowered their volume of supplies in the markets. Thus, the fish index in AONCR and in the Philippines moved up by 2.9 percent.  In NCR, the fish index advanced by 4.1 percent due to higher prices of shrimps and crabs in the area.

The corn index in the Philippines and AONCR gained 2.5 percent in the first quarter of 2014 from 0.9 percent in the fourth quarter of 2013. The low supplies of corn raised its prices in the markets. The group’s index in NCR likewise moved up by 0.8 percent in the first quarter of 2014.  This was however slower than its 4.3 percent growth during the last quarter.

Price hikes in eggs noted in most of the regions resulted to the 1.7 percent increment in the group’s index in AONCR and in the Philippines and 1.4 percent in NCR.

The meat index in NCR went up 0.7 percent due to the increases in the prices of processed meat and fresh meat such as beef and chicken.  Similarly, the group’s index in AONCR and in the Philippines grew by 1.3 percent as meat products were priced higher in selected regions.

The dairy products index in the Philippines and AONCR climbed by 0.7 percent, and in NCR, 0.8 percent as milk and milk products generally were priced higher during the quarter.

Upward adjustments in the prices of selected spices and seasonings, cooking oil, sugar and sugar pushed up the miscellaneous foods index in the Philippines and AONCR by 1.3 percent and in NCR, 0.5 percent.

With 13 regions having slower quarterly gains in the prices of rice, the group’s index in AONCR eased to 2.2 percent during the quarter from 3.5 percent in the last quarter. The lowest quarterly rate of -0.3 percent was noticed in ARMM.  Similarly, the increase in rice index in NCR slowed to 4.8 percent from 6.4 percent.  Movement in the group’s index at the national level improved to 2.2 percent from 3.6 percent.

Price increases in LPG and kerosene and higher charges in electricity rates in NCR raised the FLW index in NCR by 1.6 percent.  Mark-ups in the prices of LPG and kerosene seen in most of the regions likewise resulted to the 1.8 percent growth in the group’s index in the Philippines and AONCR.

The H&R index in the Philippines and AONCR grew by 1.0 percent and in NCR, 0.1 percent.  This was brought about by the price add-ons in selected construction materials and higher salaries of carpenters, plumbers and electricians in most of the regions.

Charges for selected medical and personal services in some regions including NCR went up during the quarter.  Thus, the services index in the Philippines and AONCR rose 0.3 percent and in NCR, 0.4 percent.

With higher rates in sewing charges for clothing along with the price gains in selected clothing and footwear items, the clothing index in the Philippines and AONCR recorded a 0.7 percent growth and in NCR, 0.8 percent.

The miscellaneous items index in the Philippines moved up 0.4 percent; NCR, 1.6 percent; and AONCR, 0.3 percent.  Upward price adjustments for some items for household operations and personal care and effects were generally observed during the quarter.