July 2009

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

p - preliminary

• Year-on-Year

The year-on-year movement of the country's General Wholesale Price Index (GWPI) further dropped to -11.2 percent in July from -8.8 percent in June. This was due to the continued negative annual movements recorded in the indexes of the following commodity groups: crude materials, inedible except fuels at -32.5 percent in July from -31.0 percent in June; mineral fuels, lubricants and related materials, -36.6 percent from -31.4 percent; and chemicals, including animal and vegetable oils and fats, -1.2 percent from -0.7 percent. The annual rate of price adjustment in the machinery and transport equipment index was registered at -0.5 percent for four consecutive months. Moreover, the annual growth rate in the food index decelerated to 0.8 percent from 1.3 percent; beverages and tobacco, 2.0 percent from 2.4 percent; manufactured goods classified chiefly by materials, 1.4 percent from 2.8 percent; and miscellaneous manufactured articles, 2.3 percent from 2.4 percent.

• The annual rate of the GWPI in Luzon further declined to -12.6 percent in July from -9.8 percent in June as decreases were observed in the rates of crude materials, inedible except fuels index at -34.8 percent from -33.0 percent; mineral fuels, lubricants and related materials, -38.3 percent from -33.2 percent; and chemicals, including animal and vegetable oils and fats, -1.7 percent from -1.2 percent. Slower annual price hikes were also noticed in food items at 2.2 percent from 3.3 percent; beverages and tobacco, 3.8 percent from 4.0 percent; and manufactured goods classified chiefly by materials, 2.0 percent from 3.7 percent. The indexes for machinery and transport equipment and miscellaneous manufactured articles retained their last month's annual rates of -1.4 percent and 2.1 percent, respectively.
  

• In Visayas, the annual price change of the GWPI continued to drop at -10.2 percent in July from -9.1 percent in June. Except for miscellaneous manufactured articles index which recorded a positive annual growth rate of 3.7 percent, all the commodity groups still posted negative annual rates in July. The annual rate was observed in the food index at -6.8 percent from -9.1 percent; beverages and tobacco, -3.5 percent from -1.8 percent; crude materials, inedible except fuels, -23.3 percent from -24.9 percent; mineral fuels, lubricants and related materials, -32.9 percent from -24.8 percent; chemicals, including animal and vegetable oils and fats, -1.4 percent from -0.6 percent; manufactured goods classified chiefly by materials, -6.1 percent from -6.3 percent; and machinery and transport equipment, -0.6 percent from -1.0 percent.
  

• The annual rate of price gain based on the GWPI in Mindanao continued to slow down to 0.9 percent in July from 1.0 percent last month brought about by the decline in the food index at -1.8 percent from -1.6 percent. For three consecutive months, a negative rate of 3.9 percent was also posted in the beverages and tobacco index. Moreover, a slower price increment was noticed in manufactured goods classified chiefly by materials at 3.4 percent from 3.5 percent. On the other hand, higher annual rates were correspondingly seen in the indexes of machinery and transport equipment and miscellaneous manufactured articles at 5.6 percent and 2.9 percent from their respective previous month's rates of 5.5 percent and 2.7 percent. The corresponding annual growth rates of crude materials, inedible except fuels and chemicals, including animal and vegetable oils and fats remained at 5.3 percent and 3.0 percent while that for mineral fuels, lubricants and related materials was zero.
  

• By Commodity Group, Month-on-Month

On a monthly basis, wholesale prices of commodities at the national level decreased to -0.7 percent in July from 2.9 percent in June. Downward movements were observed in the indexes of the following commodity groups: food items (-1.2% from 1.2%); crude materials, inedible except fuels (-3.1% from -3.4%); mineral fuels, lubricants and related materials (-0.7% from 13.7%); chemicals, including animal and vegetable oils and fats (-0.8% from -0.2%); and miscellaneous manufactured articles (-0.1% from 0.1%). The monthly price movement in the beverages and tobacco index was still at its last month's rate of -0.1 percent while that for machinery and transport equipment remained stable as its group's index posted a zero growth during the month.

• Lower prices of copra correspondingly pushed down the index for crude materials, inedible except fuels in Luzon and in Visayas by -3.2 percent and -2.7 percent, respectively. Thus, movement in the group's index at the national level was recorded at -3.1 percent. Meanwhile, prices of crude materials, inedible except fuels in Mindanao generally remained stable as its group? index had a zero growth.
  

• Declines in the prices of selected fish species, fruits, vegetables, copra meal and desiccated coconut in Luzon resulted to a decrease in the food index at -1.3 percent in July from the 1.4 percent growth in June. Reductions were also noted in the prices of some fresh water fish, fruits, vegetables and processed animal feeds in Visayas hence, its group's index dropped to -0.2 percent. In Mindanao, downward movement in the prices of milled rice, selected fish, fruits and vegetables contributed to a drop in the group? index by -0.7 percent. All these factors pulled down the national index by -1.2 percent.
  

• Decreases in the prices of coconut oil and some pharmaceutical preparations in Luzon resulted to a continued negative movement in the group? index for chemicals, including animal and vegetable oils and fats in the area at -1.0 percent and consequently at the national level at -0.8 percent. However, prices of selected washing and cleaning compounds were up in Visayas. Thus, the group's index in the area gained 0.1 percent, the same rate posted in June. Meanwhile, no movement was seen in the prices of chemicals, including animal and vegetable oils and fats in Mindanao as its index had a zero growth.
  

• Rollbacks in the prices of petroleum products pushed down the index for mineral fuels, lubricants and related materials in Luzon by -0.5 percent from 15.0 percent; Visayas, -4.5 percent from 8.3 percent; and in the Philippines, -0.7 percent from 13.7percent. However, the price decline on petroleum products in Mindanao was offsetted by the upward movement in the price of LPG, hence a 0.2 percent growth was registered in its index.
  

• The miscellaneous manufactured articles index at the national level went down by -0.1 percent. This can be attributed to the -1.2 percent decrease in the group? index in Visayas as prices of selected furniture and photographic instruments were on the downtrend. Meanwhile, higher prices of selected plumbing fixtures, and office supplies raised its index in Luzon by 0.1 percent, the same growth rate recorded last month. The 0.3 percent growth in the group's index in Mindanao was due to the increment in the prices of selected footwear, photographic instruments and other miscellaneous manufactures in the area.
  

• A 1.3 percent decrease was observed in the beverages and tobacco index in Visayas mainly due to lower prices of selected softdrinks in the area. Prices of beverages and tobacco in Luzon and Mindanao remained stable as their index had a zero growth in July. At the national level, the group's index moved at -0.1percent.
  

• The monthly change in the index for machinery and transport equipment in Mindanao at -0.1 percent was brought about by the lower prices of selected electrical appliances. Meanwhile, prices of machinery and transport equipment in Luzon and Visayas generally remained stable as no movement was noted in their indexes. The group's index in the Philippines also recorded a zero growth during the month.

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Source: National Statistics Office
Manila, Philippines

Page last revised: October 30, 2009