December 2008

Year-on-Year Inflation Rates, All Items
December 2007 - December 2008

p - pleminary
r - revised

Year-on-Year

• The year-on-year growth rate of the General Wholesale Price Index (GWPI) in the Philippines continued to post a slower rate of 1.8 percent in December from 4.4 percent in November. This was effected by the negative annual growth rates correspondingly registered in the crude materials, inedible except fuels and mineral fuels, lubricants and related materials index at -1.7 percent and -15.0 percent in December from their respective November rates of -0.8 percent and -3.7 percent. In addition, annual growth rates for chemicals, including animal and vegetable oils and fats and machinery and transport equipment continued to slow down at 3.8 percent from their corresponding last month's rates of 6.2 percent and 3.9 percent. On the other hand, higher annual growth rates were correspondingly noted in food and manufactured goods classified chiefly by materials index at 9.9 percent and 7.7 percent from 9.6 percent and 7.4 percent, respectively. Annual price increases in the beverages and tobacco and miscellaneous manufactured articles index remained at their corresponding November rates of 6.7 percent and 3.9 percent.
  

• The average annual growth rate of the GWPI in 2008 accelerated to 11.9 percent compared to 3.2 percent a year ago. This was brought about by higher average annual growth rates registered in all the commodity groups. Average annual growth rate for the food index grew to 8.9 percent in 2008 from 3.8 percent in 2007; beverages and tobacco, 4.7 percent from 1.8 percent; crude, materials, inedible except fuels, 18.2 percent from 16.8 percent; mineral fuels, lubricants and related materials, 30.7 percent from 1.3 percent; chemicals, including animal and vegetable oils and fats, 8.6 percent from 6.4 percent; manufactured goods classified chiefly by materials, 5.7 percent from 5.3 percent; machinery and transport equipment, 3.2 percent from 0.8 percent; and miscellaneous manufactured articles, 3.0 percent from 1.2 percent.
  

• The annual rate of price hike based on the GWPI in Luzon eased to 1.6 percent in December from 4.7 percent in November. This can be attributed mainly to the negative annual growth rates correspondingly recorded in the crude materials, inedible except fuels and mineral fuels, lubricants and related materials index at -2.1 percent and -16.8 percent from -0.4 percent and -5.2 percent, respectively. Moreover, slower annual price gain was observed in chemicals, including animal and vegetable oils and fats index at 2.0 percent from 4.9 percent. Meanwhile, upward annual adjustment was noticed in the food index at 13.1 percent from 12.7 percent; manufactured goods classified chiefly by materials, 7.9 percent from 7.4 percent; and machinery and transport equipment, 4.8 percent from 4.7 percent. The annual rate of price changes for beverages and tobacco and miscellaneous manufactured articles index were at their respective November rates of 7.4 percent and 3.8 percent.
  

• The 2008 average annual growth rate of the WPI in Luzon picked up to 12.9 percent from 2.8 percent last year due to higher annual growth rates recorded in all the commodity groups. The average annual growth rate of the food index grew to 9.9 percent from 3.0 percent; beverages and tobacco, 4.7 percent from 1.4 percent; crude materials, inedible except fuels, 19.2 percent from 17.9 percent; mineral fuels, lubricants and related materials, 32.1 percent from 1.4 percent; chemicals, including animal and vegetable oils and fats, 8.0 percent from 7.1 percent; manufactured goods classified chiefly by materials, 5.1 percent from 5.0 percent; machinery and transport equipment, 3.8 percent from 0.2 percent; and miscellaneous manufactured articles, 2.9 percent from 1.0 percent.
  

• The annual movements of wholesale prices in Visayas dropped to -0.3 percent in December from 1.4 percent in November. This was mainly due to the 10.5 percent decline in the mineral fuels, lubricants and related materials index from 2.0 percent. In addition, negative annual growth rates were still observed in the food and machinery and transport equipment index at 5.4 percent and 0.6 percent, respectively from their corresponding last month's annual growth rates of -6.1 percent -0.1 percent. Slower annual price increments were also noticed in the following commodity groups: chemicals, including animal and vegetable oils and fats index, 16.5 percent from 16.7 percent; manufactured goods classified chiefly by materials, 12.1 percent from 12.8 percent; and miscellaneous manufactured articles, 8.3 percent from 8.7 percent. Higher annual price add-ons was however, registered in crude materials, inedible except fuels at 0.9 percent from -6.5 percent. The annual growth rate for beverages and tobacco remained at 6.0 percent.
  

• The WPI average annual growth rate in Visayas was higher at 7.9 percent in 2008 compared to 5.4 percent in 2007. The average annual increment for mineral fuels, lubricants and related materials index jumped to 22.9 percent from 2.9 percent; chemicals, including animal and vegetable oils and fats, 14.7 percent from 3.7 percent; manufactured goods classified chiefly by materials, 12.6 percent from 3.9 percent; miscellaneous manufactured articles, 6.9 percent from 0.7 percent; and beverages and tobacco, 5.8 percent from 3.2 percent. On the other hand, slower average annual growth rate was posted in food index at 2.1 percent from 8.8 percent; crude materials, inedible except fuels, 14.1 percent from 14.3 percent; and machinery and transport equipment, 0.3 percent from 3.1 percent.
  

• The annual price uptick based on the GWPI for Mindanao decelerated by 1.2 percentage points to 4.9 percent in December from 6.1 percent in November. Except for beverages and tobacco index whose annual growth rate remained at 3.0 percent, slowdowns were recorded in all the commodity groups. The food index slowed to 5.6 percent in 2008 from 6.1 percent in 2007; crude materials, inedible except fuels, 0.9 percent from 3.7 percent; mineral fuels, lubricants and related materials, 14.1 percent from 19.4 percent; chemicals, including animal and vegetable oils and fats, 5.0 percent from 6.2 percent; manufactured goods classified chiefly by materials, 3.2 percent from 4.8 percent; machinery and transport equipment, 1.3 percent from 1.8 percent; and miscellaneous manufactured articles, 0.4 percent from 0.6 percent.
  

• The average annual growth rate of the GWPI in Mindanao was observed at 7.4 percent in 2008 higher than the 4.1 percent growth rate last year. Faster average annual growth rates were noticed in the following commodity groups: food index, 10.1 percent in 2008 from 4.9 percent in 2007; crude materials, inedible except fuels, 6.4 percent from 0.8 percent; mineral fuels, lubricants and related materials, 17.0 percent from -1.3 percent; and chemicals, including animal and vegetable oils and fats, 6.9 percent from 3.9 percent. On the contrary, slower average annual growth rate was seen in manufactured goods classified chiefly by materials index at 4.6 percent from 8.7 percent; machinery and transport equipment, 2.2 percent from 2.6 percent; and miscellaneous manufactured articles, 1.3 percent from 3.0 percent. Beverages and tobacco index retained its last year's average annual growth rate of 3.5 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the general level of wholesale prices at the national level still posted a negative rate of 2.2 percent in December from -3.0 percent in November. Prices of chemicals, including animal and vegetable oils and fats further went down by -2.0 percent from -0.7 percent. Similarly, prices of crude materials, inedible except fuels and mineral fuels, lubricants and related materials correspondingly decelerated to -0.9 percent and -12.1 percent from 0.4 percent and -12.2 percent, respectively. Meanwhile, higher price increments were correspondingly recorded in food and manufactured goods classified chiefly by materials index at 1.6 percent and 0.4 percent from their respective last month's rates of -0.1 percent and 0.1 percent. The monthly price changes in beverages and tobacco, machinery and transport equipment and miscellaneous manufactured articles remained stable as their group's index registered a zero growth during the month.
  

  NOTE :

  • The continued reductions in the prices of LPG, kerosene, gasoline and diesel nationwide pushed down the mineral fuels, lubricants and related materials index in the four areas: Philippines, -12.1 percent in December from -12.2 percent in November; Luzon, -12.9 percent from -12.8 percent; Visayas, -11.2 percent from -12.7 percent; and Mindanao, -0.2 percent from -0.6 percent.
    

  • Downward adjustment in the prices of coconut oil was noticed in Luzon. Likewise, lower prices of fertilizers caused the corresponding index for chemicals, including animal and vegetable oils and fats in the area and in Visayas to decrease by -2.5 percent and -0.3 percent. A 0.2 percent drop was also registered in the group's index in Mindanao as prices of selected insecticide were on the downtrend. Thus, the overall index moved down by -2.0 percent from -0.7 percent during the month.
    

  • The crude materials, inedible except fuels index at the national level went down by -0.9 percent in December from 0.4 percent in November. This was brought about by the 1.1 percent reduction in the prices of copra and abaca in Luzon. Meanwhile, prices of crude materials, inedible except fuels in Visayas and Mindanao remained stable as their group's index had zero growth rate during the month.
    

  • Upward adjustments in the prices of selected construction materials and fabrics respectively raised the manufactured goods classified chiefly by materials index in Luzon and in the Philippines by 0.6 percent and 0.4 percent. On the other hand, the group's index went down by 0.3 percent and -0.8 percent correspondingly for Visayas and Mindanao due to lower prices of other construction materials such as steel bars, angle bars and G.I. sheets.
    

  • A 1.9 percent gain in the food index was noted in Luzon as higher prices in selected food items such as meat, dairy products, eggs, selected fish species, fruits and vegetables were observed during the month. In addition, increments in the prices of selected fish species, fruits, vegetables, tonic drinks and spices along with the price hike on selected poultry feeds pushed up the group's index in Visayas by 1.2 percent. Meanwhile, price cuts on selected fresh fish species, fruits and vegetables resulted to a 0.1 percent drop in the group's index in Mindanao. At the national level, movement in the group's index was higher at 1.6 percent from -0.1 percent in December.
    

  • Prices of storage batteries and selected electrical fixtures were up in Luzon. Thus, the machinery and transport equipment index in the area grew by 0.1 percent in December, but slower than the 0.5 percent growth in November. On the other hand, decline in the prices of selected electrical appliances brought down the group's index in Visayas by -0.4 percent. In Mindanao, prices of machinery and transport equipment appeared to be stable as its group's index had a zero growth rate during the month. This mixed price trends resulted to a zero growth in the group's national index.
    

  • Higher prices of selected furniture and fixtures and photographic goods effected a 0.2 percent increase in the monthly rate of the miscellaneous manufactured articles index in Visayas. This was however, slower than its previous month's rate of 0.4 percent. On the contrary, the group's index in Mindanao had a negative rate of 0.3 percent due to reductions in the prices of selected musical instruments and wristwatch. The group's index in Luzon and in the Philippines had a zero growth rate in December.
    

  • Prices of beverages and tobacco items in the four areas generally remained stable as they posted a zero growth 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.

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: March 4, 2009