December 2010

Year-on-Year Inflation Rates, All Items
December 2009 - December 2010

p - pleminary
r - revised

Year-on-Year

• The year-on-year growth rate of the General Wholesale Price Index (GWPI) at the national level advanced to 5.1 percent in December from 4.4 percent in November. This was effected by the higher price adjustments observed in the indexes of all commodity groups except for food index whose annual rate went down to 3.2 percent in December from 3.7 percent in November. A higher rate was noted in the beverages and tobacco index at 3.5 percent from 3.4 percent; crude materials, inedible except fuels, 59.5 percent from 46.8 percent; mineral fuels, lubricants and related materials, 8.0 percent from 6.1 percent; chemicals, including animal and vegetable oils and fats, 6.9 percent from 5.5 percent; manufactured goods classified chiefly by materials, 1.1 percent from 1.0 percent; machinery and transport equipment, 1.4 percent from 1.0 percent; and miscellaneous manufactured articles, 2.5 percent from 2.4 percent.
  

• The average annual growth rate of the GWPI in 2010 accelerated to 5.9 percent compared to -3.9 percent in 2009. This is mainly due to higher average annual growth rates recorded in the indexes of the following commodity groups: crude materials, inedible except fuels, 20.2 percent in 2010 from -21.7 percent in 2009; mineral fuels, lubricants and related materials, 17.5 percent from -21.0 percent; chemicals, including animal and vegetable oils and fats, 2.6 percent from 1.8 percent; and machinery and transport equipment, 0.7 percent from -0.2 percent. On the other hand, a slower average annual growth rate was seen in the food index at 4.5 percent from 4.7 percent; beverages and tobacco, 2.1 percent from 2.7 percent; manufactured goods classified chiefly by materials, 0.6 percent from 3.3 percent; and miscellaneous manufactured articles, 0.3 percent from 1.8 percent.
  

• The annual increase in wholesale prices in Luzon grew 5.0 percent in December from 4.3 percent in November. Higher annual price additions were noticed in the indexes of crude materials, inedible except fuels at 63.6 percent from 50.8 percent; mineral fuels, lubricants and related materials, 7.4 percent from 5.8 percent; chemicals, including animal and vegetable oils and fats, 9.2 percent from 7.4 percent; machinery and transport equipment, 1.0 percent from 0.9 percent; and miscellaneous manufactured articles, 2.4 percent from 2.3 percent. Meanwhile, a slower annual price gain was registered in the food index at 2.1 percent from 2.6 percent. The annual growth for the indexes of beverages and tobacco and manufactured goods classified chiefly by materials were still at their corresponding last month's annual rates of 3.7 percent and 1.1 percent.
  

  The average annual growth rate of the GWPI in Luzon jumped to 6.3 percent in 2010 from -4.6 percent last year. Increases were recorded in the average annual movement of crude materials, inedible except fuels index at 21.8 percent in 2010 from -23.4 percent in 2009; mineral fuels, lubricants and related materials, 18.4 percent from -22.5 percent; chemicals, including animal and vegetable oils and fats, 3.4 percent from 1.4 percent; and machinery and transport equipment, 0.7 percent from -0.9 percent. However, the average annual growth rate posted in the food index slowed down to 4.2 percent from 6.6 percent; beverages and tobacco, 2.7 percent from 4.0 percent; and manufactured goods classified chiefly by materials, 0.6 percent from 3.7 percent. The average annual rate for miscellaneous manufactured articles index remained stable during the year.
  

• The annual movement of the GWPI in Visayas also rose to 7.5 percent in December from 5.5 percent in November. It resulted from a higher annual growth rate in beverages and tobacco index at 4.3 percent in December from 3.9 percent in November; crude materials, inedible except fuels, 59.0 percent from 40.0 percent; mineral fuels, lubricants and related materials, 14.6 percent from 6.2 percent; and machinery and transport equipment, 5.0 percent from 2.7 percent. Meanwhile, a slower annual price hike was observed in the index of miscellaneous manufactured articles at 1.7 percent from 1.8 percent. The annual growth for food index, chemicals, including animal and vegetable oils and fats and manufactured goods classified chiefly by materials were still at their respective last month's rates of 8.5 percent, -1.6 percent and 0.9 percent.
  

  The average annual movement of wholesale prices in Visayas picked up to 4.0 percent from -4.7 percent in 2009. Higher average annual growth rates were noted in the indexes of the following: food (4.8% from -4.3%); crude materials, inedible except fuels (17.4% from -15.6%); mineral fuels, lubricants and related materials (11.9% from -16.2%); manufactured goods classified chiefly by materials (0.5% from -0.1%); and machinery and transport equipment (0.9% from -0.8%). However, a slower annual average gain was seen in the index of miscellaneous manufactured articles at 0.4 percent from 3.5 percent last year. Moreover, reductions were correspondingly registered in the average annual movement of the beverages and tobacco index and chemicals, including animal and vegetable oils and fats at -1.0 percent and -0.1 percent, respectively.
  

• Meanwhile, the annual change of the GWPI in Mindanao eased to 3.6 percent in December from 4.5 percent in November. Negative annual rates were still recorded correspondingly in the indexes of crude materials, inedible except fuels and chemicals, including animal and vegetable oil and fats at -7.1 percent and -0.8 percent, respectively. Likewise, slowdowns in growths were seen in the indexes of the following: food (5.4% from 7.6%); beverages and tobacco (1.1% from 1.4%); mineral fuels, lubricants and related materials (9.8% from 10.3%); manufactured goods classified chiefly by materials (0.7% from 1.0%); and miscellaneous manufactured articles (3.3% from 3.5%). On the other hand, a higher annual price addition was noticed in the machinery and transport equipment index at 1.0 percent from 0.1 percent.
  

  The average annual growth of the GWPI in Mindanao advanced to 4.4 percent in 2010 compared to 2.8 percent in 2009. A higher average annual growth rate was observed in the food index at 6.9 percent in 2010 from 1.2 percent in 2009; beverages and tobacco, 0.9 percent from -1.9 percent; mineral fuels, lubricants and related materials, 10.7 percent from 6.9 percent; and miscellaneous manufactured articles, 2.8 percent from 1.7 percent. However, negative average annual rates were posted correspondingly in crude materials, inedible except fuels index and chemicals, including animal and vegetable oils and fats at -4.3 percent and -0.2 percent, respectively. Moreover, the average annual growth in manufactured goods classified chiefly by materials index slipped to 1.1 percent from 3.2 percent; and machinery and transport equipment, 0.8 percent from 4.8 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the general level of wholesale prices at the national level eased to 1.3 percent in December from 2.2 percent in November. Price increases slowed down in the food index at 0.8 percent in December from 2.7 percent in November; beverages and tobacco, 0.1 percent from 1.3 percent; mineral fuels, lubricants and related materials, 2.9 percent from 4.2 percent; and miscellaneous manufactured articles, 0.1 percent from 2.5 percent. Meanwhile, higher monthly growth rates were correspondingly registered in the indexes of crude, materials, inedible except fuels at 8.6 percent from 2.4 percent; chemicals, including animal and vegetable oils and fats, 1.5 percent from 0.4 percent; and machinery and transport equipment, 0.4 percent from -0.1 percent. Prices of manufactured goods classified chiefly by materials remained stable as its group's index had a zero growth during the month.
  

  • The monthly price change in mineral fuels, lubricants and related materials index in Visayas at 5.2 percent was brought about by price hike in gasoline, kerosene and diesel oil in the area. Similarly, a 2.8 percent growth in the group's index in Luzon was attributed to price add-ons in crude oil during the month. This was however slower than the growth of 4.5 percent last month. In Mindanao, price gains in LPG caused a 0.6 percent increment in its group's index. The group's index in the Philippines went up to 2.9 percent in December, slower than the 4.2 percent growth in November.
    

  • Higher prices of selected food items like pork, cooking oil, sugar and coffee pushed up the food index in Visayas by 0.3 percent. Likewise, upward adjustments in the prices of chicken, some vegetables, selected fish species, calamansi, garlic and sugar raised its group's index in Luzon by 0.9 percent. Price increases in copra meal and desiccated coconut was also observed in Luzon during the month. Meanwhile, lower prices of pork, tubers, selected leafy vegetables and some miscellaneous food items pushed down its index in Mindanao by -0.5 percent. These mixed price trends caused the national index to move up at a slower rate of 0.8 percent.
    

  • Uptick in the prices of selected office supplies caused a 0.2 percent gain in the miscellaneous manufactured articles index in Luzon. On the other hand, reductions in the prices of selected furniture and fixtures in Mindanao pushed down the group's index by -0.3 percent. Moreover, a -0.1 percent decline in the group's index in Visayas was a result of a decrease in prices of some sanitary fixtures and photographic goods during the period. All these factors contributed to a 0.1 percent increase in the group's national index.
    

  • The beverages and tobacco index in Visayas registered a 0.4 percent growth in December as prices of selected liquors and softdrinks in the area were on the uptrend. However, this was slower than its last month's rate of 0.6 percent. Meanwhile, prices of beverages and tobacco in Luzon and Mindanao generally remained stable as their group's index had a zero growth. The group's index at the national level inched up to 0.1 percent, slower than 1.3 percent in November.
    

  • Price hikes in copra were noted in Visayas and Luzon, hence the crude materials, inedible except fuels index in the two areas accelerated to 13.6 percent and 8.5 percent, respectively. In Mindanao, a -1.3 percent drop in the group's index was due to reductions in the prices of bamboo. At the national level, the index jumped to 8.6 percent from 2.4 percent.
    

  • The chemicals, including animal and vegetable oils and fats index in Luzon advanced by 1.8 percent in December as prices of coconut oil in the area went up. In addition, higher prices of varnish and paints raised the group's index in Visayas by 0.1 percent. In Mindanao, prices of selected cosmetics and other cleaning compounds also effected a 0.1 percent growth in its group's index. The monthly price movement at the national level was posted 1.5 percent higher than the 0.4 percent growth last month.
    

  • Upward adjustments in the prices of selected electrical apparatus and appliances pushed up the machinery and transport equipment index in the four areas: Philippines, 0.4 percent; Luzon, 0.1 percent; Visayas, 2.3 percent; and Mindanao, 0.8 percent.
    

  • Downward movement in the prices of some paper products contributed to a -0.3 percent decline in manufactured goods classified chiefly by materials index in Mindanao. Meanwhile, the group's index in Luzon, Visayas and in the Philippines remained stable during the month.
    

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    NOTE :

    Revisions of the monthly series from January 2009 to March 2010 were made to incorporate the machinery and equipment rental rates based on the latest updated data from the official source.

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: February 26, 2011