June 2007

Year-on-Year Inflation Rates, All Items
June 2006 - June 2007

p - pleminary
r - revised

Year-on-Year

• Year-on-year inflation rate of the General Wholesale Price Index (GWPI) decelerated to 1.0 percent in June from 1.7 percent in May as the annual rate of change in the prices of mineral fuels, lubricants and related materials further moved down to -9.3 percent from -7.7 percent. Moreover, slower annual price increments were observed in food items at 4.2 percent from 5.2 percent; machinery and transport equipment, 0.9 percent from 1.2 percent; and miscellaneous manufactured articles, 0.7 percent from 0.9 percent. On the other hand, higher annual price increases were recorded in the following commodity groups: beverages and tobacco, 1.4 percent from 1.3 percent; crude materials, inedible except fuels, 20.3 percent from 18.3 percent; chemicals, including animal and vegetable oils and fats, 6.7 percent from 6.4 percent; and manufactured goods classified chiefly by materials, 6.0 percent from 5.9 percent.
  

• In Luzon, annual inflation rate eased to 0.7 percent in June from 1.6 percent in May. Further decline in the annual rate of change in the prices of mineral fuels, lubricants and related materials during the month at -8.3 percent from -6.7 percent mainly contributed to the downtrend. In addition, slower annual growth rates were noted in the prices of food items at 3.1 percent from 4.8 percent; beverages and tobacco, 1.0 percent from 1.2 percent; manufactured goods classified chiefly by materials, 5.7 percent from 5.9 percent; and miscellaneous manufactured articles, 0.6 percent from 0.8 percent. However, higher annual increases were observed in the prices of crude materials, inedible except fuels at 21.7 percent from 19.5 percent; chemicals, including animal and vegetable oils and fats, 7.3 percent from 7.0 percent; and machinery and transport equipment, 0.6 percent from 0.4 percent.
  

• Similarly, inflation rate in Visayas slowed to 5.1 percent in June from 5.3 percent in May due the continuous negative rates in the annual prices of mineral fuels, lubricants and related materials (-4.1 percent from -0.6 percent) and miscellaneous manufactured articles (-0.2 percent from -0.1 percent). Slower annual price movements were also noticed in the group's indices for manufactured goods classified chiefly by materials (4.0 percent from 4.7 percent) and machinery and transport equipment (2.4 percent from 5.0 percent). Meanwhile, higher annual inflation rates were seen in the prices of food items at 11.0 percent from 9.2 percent; beverages and tobacco, 2.9 percent from 1.6 percent; crude materials, inedible except fuels, 17.5 percent from 16.5 percent; and chemicals, including animal and vegetable oils and fats, 5.1 percent from 4.5 percent.
  

• Inflation rate in Mindanao grew by 3.2 percent in June from 2.8 percent in May. Faster annual inflation rate was noticed in the following commodity groups: food, 4.2 percent from 3.8 percent; beverages and tobacco, 2.2 percent from 2.1 percent; chemicals, including animal and vegetable oils and fats, 3.8 percent from 3.6 percent; manufactured goods classified chiefly by materials, 9.0 percent from 6.8 percent; and miscellaneous manufactured articles, 2.8 percent from 2.6 percent. On the other hand, lower annual price additions were registered in machinery and transport equipment at 2.2 percent from 2.9 percent. Negative rates were still posted in the annual prices of crude materials, inedible except fuels and mineral fuels, lubricants and related materials at -0.9 percent and -5.7 percent, respectively.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, wholesale prices in the country generally increased by 0.3 percent in June. This was slower than the 0.5 percent growth in May.
  

  • The food index at the national level slightly dropped by -0.1 percent in June from 0.2 percent in May. This was due to the 0.5 percent decline in the price levels of selected food items in Luzon particularly chicken, selected fish species, fruits, vegetables, tubers and root crops. On the other hand, upward adjustments in the prices of pork, meat products and poultry feeds contributed to the 1.5 percent growth in the food index in Visayas. Increases in the prices of milled rice, wheat flour, selected fruits and vegetables, cooking oil and desiccated coconut also raised the group's index in Mindanao by 0.6 percent, slower than the 1.0 percent growth last month.
    

  • Add-ons in the prices of selected liquors and cigarettes effected a 0.2 percent and 1.3 percent monthly growth in the corresponding group's index of beverages and tobacco in the Philippines and Visayas. On the contrary, the group's index in Luzon went down by -0.1 percent brought about by the decrease in the price of liquor. Prices of beverages and tobacco items in Mindanao generally remained stable as its group's index registered a zero growth this month.
    

  • Higher prices of copra and abaca in Luzon moved its group's index upward by 0.9 percent and 0.8 percent in the Philippines. These were however slower than their corresponding last month? rates of 2.2 percent and 1.9 percent. Prices of crude materials, inedible except fuels generally remained stable in Mindanao as its group's index posted a zero growth from 0.2 percent while in Visayas it retained its previous month? growth rate of 0.4 percent.
    

  • Uptick in the prices of crude petroleum oil, selected petroleum products and LPG pushed up the index for mineral fuels, lubricants and related materials in Luzon by 1.2 percent in June from 1.0 percent in May. On the contrary, the decline in the prices of selected petroleum products in Visayas pulled down its group's index by -0.3 percent. In Mindanao, prices generally remained stable as its group's index registered a zero growth during the month. These mixed price trends resulted to a 1.0 percent growth in the national index, slower than the 1.1 percent growth last month.
    

  • Upward adjustments in the prices of paints and vitamins in Mindanao raised the index for chemicals, including animal and vegetable oils and fats by 0.2 percent. Likewise, the group's index in the Philippines and in Luzon went up by 0.4 percent in June brought about by the add-ons in the prices of coconut oil, fertilizer and other chemical products. Meanwhile, prices of chemicals, including animal and vegetable oils and fats in Visayas generally remained stable as its group's index had a zero growth during the month.
    

  • The index for manufactured goods classified chiefly by materials rose by 0.3 percent in Luzon as prices of cement, steel bars and other paper products went up in June. Similarly, the group's index in Mindanao advanced by 1.6 percent due to the add-ons in the prices of bond paper and other converted paper products. Meanwhile, a zero growth was seen in the group's index of Visayas. Overall, the group's national index climbed by 0.4 percent from 0.1 percent.
    

  • Price hike in electrical wire pulled up the index for machinery and transport equipment in Luzon by 0.1 percent and 0.2 percent in the Philippines. Prices of machinery and transport equipment in Visayas and Mindanao generally remained at their previous month? price levels.
    

  • The group's index for miscellaneous manufactured articles advanced by 0.3 percent in Mindanao as prices of selected ready-made apparel in the area went up during the month. However, prices of miscellaneous manufactured articles generally remained stable in the Philippines, Luzon, and Visayas as zero growth rates were posted in their respective group's indices.
    

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: August 29, 2007