January 2010

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

p - pleminary
r - revised

Year-on-Year

• The annual movement of the General Wholesale Price Index (GWPI) in the country further went up to 8.1 percent in January from 5.7 percent in December. Higher annual price gain was observed in beverages and tobacco index at 0.9 percent in January from 0.5 percent in December; mineral fuels, lubricants and related materials, 38.1 percent from 20.0 percent; and machinery and transport equipment, 0.6 percent from -1.0 percent. However, the annual price hike in food index decelerated to 4.1 percent from 5.4 percent; manufactured goods classified chiefly by materials, 0.1 percent from 0.4 percent; and miscellaneous manufactured articles, 0.6 percent from 0.7 percent. Moreover, annual price reductions were correspondingly seen in crude materials, inedible except fuels and chemicals, including animal and vegetable oils and fats index at -7.0 percent and -0.4 percent from their respective last month's rates of -15.1 percent and 4.4 percent.
  

• The annual growth rate of the GWPI in Luzon rose to 9.5 percent in January from 6.4 percent in December. This can be attributed to the annual price increment noted in beverages and tobacco index at 2.5 percent in January from 1.8 percent in December; mineral fuels, lubricants and related materials, 43.7 percent from 21.8 percent; and machinery and transport equipment, 0.4 percent from -2.0 percent. On the other hand, negative annual rates were recorded in the index of the following commodity groups: crude materials, inedible, except fuels, -7.8 percent from -16.8 percent; chemicals, including animal and vegetable oils and fats, -0.9 percent from 5.2 percent; and manufactured goods classified chiefly by materials, -0.1 percent from 0.3 percent. Slower annual price adjustments were correspondingly posted in the indexes of food and miscellaneous manufactured articles at 4.2 percent and 0.4 percent from 6.1 percent and 0.5 percent, respectively.
  

• Similarly, the annual growth rate of the GWPI in Visayas picked up to 2.6 percent in January from 1.1 percent in December. It resulted from the increase in the annual growth rate of the food index at 1.7 percent from 0.8 percent; mineral fuels, lubricants and related materials, 16.6 percent from 10.1 percent; chemicals, including animal and vegetable oils and fats, 1.0 percent from -0.8 percent; and manufactured goods classified chiefly by materials, 0.1 percent from -0.4 percent. Meanwhile, annual price declines were correspondingly registered in the indexes of beverages and tobacco and crude materials, inedible except fuels at -6.0 percent and -1.3 percent from -5.9 percent and -8.3 percent, respectively. The annual rate for the miscellaneous manufactured articles index slowed to 0.1 percent from 0.5 percent while the annual growth for machinery and transport equipment index moved at its December rate of -0.4 percent.
  

• The movement of the wholesale prices in Mindanao also continued to accelerate at 4.6 percent in January from 3.8 percent in December. Higher annual growth rate was noticed in the food index at 5.8 percent from 4.4 percent; mineral fuels, lubricants and related materials, 13.5 percent from 4.5 percent; and miscellaneous manufactured articles, 3.0 percent from 2.2 percent. However, negative rates were registered in the indexes of beverages and tobacco and crude materials, inedible except fuels at -2.9 percent. The annual price increment for chemicals, including animal and vegetable oils and fats index decelerated to 1.5 percent from 4.1 percent; manufactured goods classified chiefly by materials, 1.6 percent from 2.6 percent; and machinery and transport equipment, 2.5 percent from 5.5 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the movement of wholesale prices at the national level further improved to 0.4 percent in January from 0.7 percent in December. This was mainly due to the corresponding reductions observed in the indexes of food and chemicals, including animal and vegetable oils and fats at -0.4 percent and -0.2 percent from 1.3 percent and 0.2 percent, respectively. From zero growth, higher monthly price movements were however posted in the indexes of the following commodity groups: beverages and tobacco, 0.6 percent; crude materials, inedible except fuels, 1.5 percent; machinery and transport equipment, 0.3 percent; and miscellaneous manufactured articles, 0.1 percent. The corresponding monthly price changes in the indexes of mineral fuels, lubricants and related materials and manufactured goods classified chiefly by materials index also increased to 2.3 percent and 0.2 percent from their respective last month's rates of 1.0 percent and -0.1 percent.
  

  NOTE :

  • Lower prices of food items like selected fish species, fruits and vegetables noted in Luzon during the month pushed down the food index in the area by -0.8 percent. Likewise, movement in the group's index in Mindanao slowed down to 1.5 percent from 1.6 percent as prices of some fruits and vegetables were on the downward trend and prices of unprocessed animal feeds and rice bran also decreased. Meanwhile, prices of food items in Visayas generally remained stable as its index had a zero growth. The monthly change in the group's index at the national level was negative at -0.4 percent.
    

  • A decrease of -0.2 percent in the index for chemicals, including animal and vegetable oils and fats in Luzon was due to price reductions in selected pharmaceutical products and other washing and cleaning compounds. Similarly, lower prices of selected manufactured fertilizers and insecticides seen in Mindanao resulted to a -0.6 percent decline in its index. On the other hand, the group's index in Visayas recorded a zero growth during the month while the national index moved at -0.2 percent.
    

  • Price hikes on crude petroleum oil and petroleum products in Luzon reflected a 3.3 percent growth in the mineral fuels, lubricants and related materials index in the area. Moreover, upward adjustments in the prices of diesel oil correspondingly raised the group's index in Visayas and Mindanao by 2.8 percent and 8.7 percent. All these factors contributed to a 2.3 percent increment in the group's national index.
    

  • The movement in crude materials, inedible except fuels index at 1.9 percent in Luzon was effected by price gains in copra, abaca fiber, pebbles, sand, stone and gravel. Higher prices of copra was also noted in Visayas, thus the group's index in the area picked up to 2.6 percent. On the contrary, a decline in the prices of bamboo pushed down the group's index in Mindanao by -7.1 percent. At the national level, the crude materials, inedible except fuels index grew by 1.5 percent from zero growth last month.
    

  • Prices of selected cigarettes and brewery products in Luzon were on the uptrend hence, the beverage and tobacco index in the area advanced by 0.7 percent. Meanwhile, the group's index in Visayas and Mindanao generally remained stable during the period while in the Philippines, it moved at a rate of 0.6 percent.
    

  • A 0.3 percent price gain in manufactured goods classified chiefly by materials index was observed in Luzon as higher prices of cement, steel bars and G.I. pipes were observed during the period. Similarly, increments in the prices of woven and knitted fabrics pushed the group's index in Visayas by 0.2 percent. On the other hand, a negative rate of -0.3 percent was still recorded in the group's index in Mindanao. This can be attributed to the price reductions on selected textile fabrics and other metal products in the area. The national index went up by 0.2 percent from -0.1 percent.
    

  • The monthly price adjustment in the index of machinery and transport equipment at 0.4 percent in Luzon was caused by the increased prices of insulated electrical wires. Likewise, upward movement in the prices of selected electrical appliances raised the group's index in Mindanao by 0.2 percent. On the average, no changes were noted in the prices of machinery and transport equipment in Visayas as its index had a zero growth. The group's index at the national level moved up by 0.3 percent from zero growth last month.
    

  • The miscellaneous manufactured articles index in the Philippines inched up to 0.1 percent during the month. This was due to the 1.3 percent price add-on in the group's index in Mindanao. Higher prices of selected furniture and fixtures in the area were noted during the month. However, prices of miscellaneous manufactured articles in Luzon and Visayas generally remained stable in 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: April 17, 2010