December 2007

Year-on-Year Inflation Rates, All Items
December 2006 - December 2007

p - pleminary
r - revised

Year-on-Year

• Year-on-year inflation rate of the General Wholesale Price Index (GWPI) at the national level went up at a slower rate of 6.3 percent in December from 6.6 percent in November. Annual price adjustments for crude materials, inedible except fuels eased to 11.9 percent from 19.5 percent; mineral fuels, lubricants and related materials, 18.6 percent from 19.3 percent; chemicals, including animal and vegetable oils and fats, 5.5 percent from 7.1 percent; and manufactured goods classified chiefly by materials, 4.0 percent from 4.5 percent. On the other hand, higher inflation rates were correspondingly noted in the prices of food items and machinery and transport equipment at 3.3 percent and 0.1 percent in December from their respective November rates of 2.6 percent and zero growth. Inflation for beverages and tobacco and miscellaneous manufactured articles moved at their previous month's rates of 2.0 percent and 1.1 percent, respectively.
  

• The average annual inflation rate of the GWPI for 2007 was 3.1 percent, slower than the 8.5 percent in 2006. The following commodity groups posted lower average annual inflation rates: food, 3.9 percent in 2007 from 6.4 percent in 2006; beverages and tobacco, 1.8 percent from 4.3 percent; mineral fuels, lubricants and related materials, 0.9 percent from 21.0 percent; chemicals including animal and vegetable oils and fats, 6.4 percent from 7.7 percent; manufactured goods classified chiefly by materials, 5.3 percent from 5.5 percent; machinery and transport equipment, 0.8 percent from 3.9 percent; and miscellaneous manufactured articles, 1.2 percent from 4.4 percent. Meanwhile, the average annual inflation for crude materials, inedible except fuels was higher at 16.8 percent from 3.1 percent.
  

• Likewise, annual inflation rate in Luzon eased to 6.3 percent in December from 6.6 percent in November. This was due to the slower annual increases in the prices of beverages and tobacco at 1.4 percent from 1.5 percent; crude materials, inedible except fuels, 11.9 percent from 19.9 percent; mineral fuels, lubricants and related materials, 19.3 percent from 20.5 percent; chemicals, including animal and vegetable oils and fats, 5.5 percent from 7.6 percent; and manufactured goods classified chiefly by materials, 3.7 percent from 4.4 percent. However, higher annual growth rate was seen in the prices of food items at 2.3 percent from 1.2 percent. Inflation for machinery and transport equipment and miscellaneous manufactured articles remained at their respective last month's rates of -0.6 percent and 0.8 percent.
  

• The average annual inflation rate in Luzon decelerated to 2.7 percent in 2007 from 9.0 percent in 2006. Average annual inflation for food slid to 3.0 percent in 2007 from 6.9 percent in 2006; beverages and tobacco, 1.4 percent from 3.7 percent; mineral fuels, lubricants and related materials, 0.9 percent from 21.6 percent; chemicals including animal and vegetable oils and fats, 7.1 percent from 9.0 percent; manufactured goods classified chiefly by materials, 5.0 percent from 5.3 percent; machinery and transport equipment, 0.2 percent from 3.3 percent; and miscellaneous manufactured articles, 1.0 percent from 4.6 percent. Meanwhile, the average annual inflation for crude materials, inedible except fuels picked up to 17.9 percent from 3.1 percent.
  

• Annual inflation rate in Visayas slowed down by 0.4 percentage point to 5.9 percent in December from 6.3 percent in November. Lower annual inflation rates were recorded in the prices of food items, 6.2 percent in December from 7.4 percent in November; crude materials, inedible except fuels, 15.4 percent from 24.6 percent; and chemicals including animal and vegetable oils and fats, 4.3 percent from 4.4 percent. On the other hand, higher annual rates were correspondingly observed in the prices of mineral fuels, lubricants and related materials, manufactured goods classified chiefly by materials and miscellaneous manufactured articles at 14.4 percent, 1.5 percent and 2.9 percent from their respective last month's rates of 13.1 percent, 1.1 percent and 2.3 percent. The rest of the commodity groups moved at their previous month's rates.
  

• Average annual inflation rate in Luzon decelerated to 5.3 percent in 2007 from 8.9 percent in 2006. This was brought about by the lower average annual inflation rates observed in the following commodity groups: beverages and tobacco (3.2% from 8.4%); mineral fuels, lubricants and related materials (2.9% from 22.6%); chemicals including animal and vegetable oils and fats (3.7% from 3.9%); manufactured goods classified chiefly by materials (3.9% from 7.3%); machinery and transport equipment (3.1% from 9.6%); and miscellaneous manufactured articles (0.7% from 5.6%). However, the average annual inflation for food and crude materials, inedible except fuels were correspondingly higher at 8.6 percent and 14.3 percent from their respective previous year's average rates of 6.9 percent and 1.9 percent.
  

• Inflation rate in Mindanao rose to 6.8 percent in December from 5.8 percent in November. The annual price increases were registered higher in food items at 7.5 percent from 7.2 percent; crude materials, inedible except fuels, 5.0 percent from 2.4 percent; mineral fuels, lubricants and related materials, 12.1 percent from 7.3 percent; chemicals, including animal and vegetable oils and fats, 7.1 percent from 6.1 percent; manufactured goods classified chiefly by materials, 8.5 percent from 7.6 percent; and machinery and transport equipment, 2.4 percent from 1.9 percent. On the contrary, slower annual price gain was posted in miscellaneous manufactured articles at 2.7 percent from 2.9 percent while that for beverages and tobacco moved at its November rate of 4.0 percent.
  

• The average annual inflation in Mindanao was 4.1 percent in 2007, the same rate in 2006. Higher inflation rates were noted in the following commodity groups: food, 4.9 percent in 2007 from 3.1 percent in 2006; chemicals including animal and vegetable oils and fats, 3.9 percent from 2.6 percent; manufactured goods classified chiefly by materials, 8.7 percent from 5.4 percent; and miscellaneous manufactured articles, 3.0 percent from 1.9 percent. On the other hand, the average annual inflation were slower in beverages and tobacco at 3.5 percent from 4.6 percent; crude materials, inedible except fuels, 0.8 percent from 7.7 percent; and machinery and transport equipment, 2.6 percent from 2.7 percent. Average annual inflation for mineral fuels, lubricants and related materials dropped to -1.3 percent from 10.4 percent.
  

• By Commodity Group, Month-on-Month

  The general level of wholesale prices at the national level increased at a slower pace of 0.4 percent in December from 1.0 percent in November.
  

  NOTE :

  • The food index in Luzon went up by 1.5 percent in December from -0.4 percent in November. This was due to the upward adjustments in the price levels of selected food items in the area such as chicken, meat and meat products, fish, milk, tonic food drinks and some fruits and vegetables. Add-ons in the prices of sugar, eggs, onions and desiccated coconut also raised the group's index in Visayas and Mindanao by 0.5 percent and 0.4 percent, respectively.
    

  • Prices of beverages and tobacco items nationwide generally remained stable during the month as their group's index posted zero growth.
    

  • Higher prices of bamboo were noticed in Mindanao, thus the index for crude materials, inedible except fuels in the area accelerated to 2.8 percent during the month. Upward movement in the price of abaca in Luzon caused its index to move at 0.6 percent. This was however, lower than its last month's rate of 2.8 percent. On the other hand, reduced prices of copra pulled down its index in Visayas by -7.4 percent. This resulted to a decline in the national index by -0.1 percent.
    

  • Uptick in the prices of petroleum products was noticed in Mindanao, thus the index for mineral fuels, lubricants and related materials in the area rose to 4.5 percent from 1.3 percent. Likewise, the index in Visayas went up by 1.2 percent brought about by the price hikes in selected petroleum products. However, movements in the prices of mineral fuels, lubricants and related materials in Luzon were lower during the month as the group's index registered a negative growth of 0.2 percent due to the price cuts in crude petroleum oil. In the Philippines, the group's index increased at a slower rate of 0.1 percent from 3.8 percent.
    

  • Add-ons in the prices of paints, varnish, selected vitamins and antibiotics in Mindanao effected a 1.0 percent gain in its index for chemicals, including animal and vegetable oils and fats. The group's index in Luzon went up by 0.2 percent due to the upward movements in the prices of coconut oil and other pharmaceutical products. This was however, slower than its last month's rate of 0.5 percent. Meanwhile, the downward adjustment in the price of fertilizer in Visayas pulled down its group's index by -0.1 percent. At the national level, the group's index was still at its last month's rate of 0.3 percent.
    

  • Prices of plywood, cement and G.I sheets in Luzon were on the uptrend during the month. Likewise, higher prices of rubber tubes and angle bars were observed in Visayas. Increments in the prices of rubber tube, cement and selected paper products in Mindanao were also noticed. These raised the group's index for manufactured goods classified chiefly by materials in the four areas: Luzon, 0.1 percent; Visayas, 0.3 percent; Mindanao, 0.8 percent and in the Philippines, 0.2 percent.
    

  • The index for machinery and transport equipment in Visayas and in Mindanao correspondingly climbed up by 0.1 percent and 0.6 percent due to higher price mark-ups on selected electrical appliances and selected electrical lamps and fixtures. Meanwhile, machinery and transport equipment in Luzon remained stable as its index registered a zero growth. The overall index rose by 0.1 percent from -0.1 percent.
    

  • The group's index for miscellaneous manufactured articles in Visayas gained by 0.6 percent as upward adjustments were seen in the prices of selected wristwatches and photofilms. Reduction in price of camera however brought down the group's index in Mindanao by -0.1 percent. Movements in the prices of manufactured goods classified chiefly by materials in Luzon and in the Philippines generally remained stable during the month.
    
    _______________________________________________________________

    Revisions of the series from January to July 2007 were made due to the updated price reports on asphalt and the implementation of new rental rates on machinery and transport equipment provided by the official sources.

  ---

  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: April 3, 2008