February 2009

Year-on-Year Inflation Rates, All Items
February 2008 - February 2009

p - pleminary
r - revised

Year-on-Year

• The year-on-year growth rate of the General Wholesale Price Index (GWPI) in the Philippines further dropped to -1.6 in February from -0.7 percent in January. This was effected by the continued reductions in the corresponding annual growth rates of crude materials, inedible except fuels and mineral fuels, lubricants and related materials index at -16.7 percent and -27.4 percent from -10.8 percent and -25.2 percent, respectively. The annual growth rate for chemicals, including animal and vegetable oils and fats index slowed down to 3.5 percent from 6.5 percent. On the other hand, higher annual growth rates were correspondingly recorded in beverages and tobacco and machinery and transport equipment index at 7.4 percent and 1.9 percent from their respective last month's rates of 7.0 percent and 1.7 percent. Annual price increases in food, manufactured goods classified chiefly by materials and miscellaneous manufactured articles index remained at their January rates of 10.8 percent, 7.5 percent and 2.3 percent, respectively.
  

• The annual rate of price hike based on the GWPI in Luzon further eased to -2.5 percent in February from -1.3 percent in January. 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 -17.9 percent and -30.4 percent from their respective January rates of -11.5 percent and -28.0 percent. Moreover, slower annual price gain was observed in the following commodity groups: food, 13.9 percent from 14.1 percent; chemicals, including animal and vegetable oils and fats, 2.3 percent from 6.0 percent; and manufactured goods classified chiefly by materials, 7.7 percent from 7.8 percent. The movement in the index for machinery and transport equipment remained at its last month's rate of 2.0 percent.
  

• Likewise, the annual movements of wholesale prices in Visayas further decelerated to -2.4 percent in February from -1.6 percent in January. Declines were noted in food index at -5.2 percent from -5.3 percent; crude materials, inedible except fuels, -13.0 percent from -10.9 percent; mineral fuels, lubricants and related materials, -14.5 percent from -13.0 percent; and machinery and transport equipment, -1.0 percent from -0.8 percent. Slower annual price increments were also registered in chemicals, including animal and vegetable oils and fats at 8.5 percent from 9.9 percent; manufactured goods classified chiefly by materials, 7.7 percent from 10.8 percent; and miscellaneous manufactured articles, 5.4 percent from 7.2 percent. A higher annual price add-on was however seen in beverages and tobacco index at 6.9 percent from 6.5 percent.
  

• On the other hand, wholesale prices in Mindanao rose to 6.5 percent in February from 5.7 percent in January. The annual growth rate in food index went up to 7.2 percent from 6.6 percent; mineral fuels, lubricants and related materials, 15.5 percent from 13.9 percent; chemicals, including animal and vegetable oils and fats, 7.8 percent from 7.1 percent; manufactured goods classified chiefly by materials, 5.5 percent from 3.8 percent; machinery and transport equipment, 3.7 percent from 2.4 percent; and miscellaneous manufactured articles, 1.0 percent from zero. Meanwhile, a negative annual rate was noticed in beverages and tobacco index at -1.0 percent from 3.8 percent while that for crude materials, inedible except fuels index was at its last month's rate of 3.6 percent.
  

• By Commodity Group, Month-on-Month

  The monthly growth rate of wholesale prices of commodities at the national level was still posted at a negative rate of 0.5 percent in February from -1.9 percent in January. Downward movements in the prices of the following commodity groups were seen during the period: food items, -0.2 percent from 0.8 percent; crude materials, inedible except fuels, -0.3 percent from -7.3 percent; mineral fuels, lubricants and related materials, -3.2 percent from -11.7 percent; and chemicals, including animal and vegetable oils and fats, -0.1 percent from 4.6 percent. The monthly price change in manufactured goods classified chiefly by materials was also slower at 0.4 percent from 0.6 percent. Meanwhile, higher price increments were recorded in beverages and tobacco at 0.4 percent from 0.2 percent; machinery and transport equipment, 0.4 percent from -1.3 percent; and miscellaneous manufactured articles, 0.3 percent from 0.2 percent.
  

  NOTE :

  • A decline in the prices of crude petroleum oil, kerosene, fuel and diesel oil in Luzon effected a 3.6 percent drop in the index for mineral fuels, lubricants and related materials in the area. Likewise, the group's index in Visayas recorded a negative rate of 3.2 percent brought about by the rollbacks in the prices of selected petroleum products. Thus, the national index dropped to -3.2 percent. However, addition in the price of lubricating oil raised the group's index in Mindanao by 1.4 percent.
    

  • Reduction in the price of copra brought down the crude materials, inedible except fuels index in Luzon and consequently in the national index by -0.3 percent. On the other hand, prices of crude materials, inedible except fuels in Visayas and Mindanao generally remained stable as their group's index had a zero growth during the month.
    

  • Lower price of coconut oil in Luzon was posted during the month. It pushed down the corresponding index for chemicals, including animal and vegetable oils and fats in the area and in the Philippines by -0.3 percent and -0.1 percent, respectively. However, the group's index in Visayas grew by 0.6 percent as prices of selected chemicals, paints and other washing and cleaning compounds were higher during the period. A slower 0.8 percent growth was likewise seen in the group's index in Mindanao due to price hikes in fertilizer and selected pharmaceutical products.
    

  • The food index at the national level went down by -0.2 percent in February from 0.8 percent in January. This was due to the -0.4 percent decrease in the prices of selected food items in Luzon such as beef, milk, fish, cooking oil, fruits and vegetables. Lower prices of copra meal and desiccated coconut in the area also contributed to the downtrend. Meanwhile, upward movements in the prices of rice, meat products, instant coffee, selected fish species, fruits and vegetables along with the price hike on poultry feeds raised the group's index in Visayas by 0.1 percent. Moreover, a 0.7 percent increment in the group's index in Mindanao was noted as prices of eggs, rice and selected fruits and vegetables were higher during the month.
    

  • Prices of selected liquors and cigarettes were up in Luzon and Visayas thus, the beverages and tobacco index in the two areas correspondingly accelerated by 1.2 percent and 0.6 percent, respectively. On the contrary, a -4.6 percent drop was observed in the group's index in Mindanao mainly due to the reduced prices of selected softdrinks. At the national level, the group's index advanced to 0.4 percent.
    

  • The monthly change in the index for machinery and transport equipment in Luzon at 0.3 percent was effected by the increases in the prices of selected transport equipment, dry cell battery and some electrical fixtures. Add-ons in the prices of selected electrical appliances and fixtures were also noted in Mindanao thereby causing its group's index to move up to 1.3 percent but slower than the 3.1 percent last month. However, lower prices of some insulated electrical wires in Visayas brought down the group's index by -0.3 percent. At the national level, the group's index gained 0.4 percent higher than the -1.3 percent recorded in the previous month.
    

  • Higher prices of selected footwear, furniture and fixtures raised the miscellaneous manufactured articles index in Mindanao by 0.9 percent and in the Philippines by 0.3 percent. Moreover, price gains in water and electrical pipes along with the increased prices of selected magazine pulled up the group's index in Visayas by 0.1 percent but this was slower than the 0.4 percent last month. The monthly growth rate of miscellaneous manufactured articles items in Luzon was at its last month's rate of 0.2 percent.
    

  • The movement in the manufactured goods classified chiefly by materials index was registered at 2.3 percent in Mindanao due to price increases in rubber tires and tubes, woven fabrics, glass products, flat and angle bars and some electrical conduit pipes. In Luzon, additions in the prices of selected construction materials along with the upward movement in the prices of rubber tires and tubes resulted to a 0.3 percent growth in the group's index. This was, however slower than its previous month's rate of 0.6 percent. In Visayas, the group's index moved at its last month's rate of -0.4 percent. At the national level, the index went up by 0.4 percent, slower than 0.6 percent last January.
    
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    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: June 4, 2009