March 2008

Year-on-Year Inflation Rates, All Items
March 2007 - March 2008

p - pleminary
r - revised

Year-on-Year

• The annual growth rate of the General Wholesale Price Index (GWPI) in the Philippines accelerated to 10.4 percent in March from 8.6 percent in February. Except for beverages and tobacco and miscellaneous manufactured articles which respectively retained their annual growth rates at 1.5 percent and 2.8 percent, all the other commodity groups posted faster annual growth rates during the month. The annual growth rate of food index advanced to 7.4 percent in March from 3.8 percent in February; crude materials, inedible except fuels, 24.8 percent from 19.3 percent; mineral fuels, lubricants and related materials, 26.9 percent from 26.4 percent; chemicals, including animal and vegetable oils and fats, 10.3 percent from 9.4 percent; manufactured goods classified chiefly by materials, 3.3 percent from 3.2 percent; and machinery and transport equipment, 3.8 percent from 1.3 percent.
  

• The annual growth rate of wholesale prices in Luzon rose by 1.7 percentage points to 10.7 percent in March from 9.0 percent in February. Higher annual price increments were observed in the following commodity groups: food, 6.1 percent from 3.1 percent; crude materials, inedible except fuels, 26.1 percent from 20.6 percent; mineral fuels, lubricants and related materials, 28.7 percent from 28.0 percent; chemicals, including animal and vegetable oils and fats, 11.1 percent from 9.5 percent; machinery and transport equipment, 4.3 percent from 0.9 percent; and miscellaneous manufactured articles, 2.7 percent from 2.6 percent. However, the annual growth rates for beverages and tobacco index and manufactured goods classified chiefly by materials index were correspondingly slower by 1.0 percent and 2.5 percent from their respective last month's rates of 1.1 percent and 2.7 percent.
  

• Similarly, the annual price adjustments of the GWPI for Visayas jumped to 9.4 percent in March from 7.5 percent in February. The annual rate of price increases in food items picked up to 8.8 percent from 7.0 percent; beverages and tobacco, 4.1 percent from 3.7 percent; crude materials, inedible except fuels, 22.5 percent from 13.9 percent; mineral fuels, lubricants and related materials, 19.8 percent from 16.8 percent; manufactured goods classified chiefly by materials, 8.7 percent from 4.6 percent; and miscellaneous manufactured articles, 5.8 percent from 5.3 percent. Meanwhile, annual movement in the index for chemicals, including animal and vegetable oils and fats was slower at 10.0 percent from 10.6 percent. The annual growth rate for machinery and transport equipment remained at 1.1 percent.
  

• The annual movement of the GWPI in Mindanao was up by 2.3 percentage points to 7.8 percent in March from 5.5 percent in February. This can be attributed mainly to the higher annual growth rate in the food index at 14.2 percent from 5.0 percent. On the other hand, slowdowns in the annual gains were noted in the following commodity groups: crude materials, inedible except fuels (3.8% from 5.2%); mineral fuels, lubricants and related materials (6.5% from 12.1%); chemicals, including animal and vegetable oils and fats (4.8% from 6.8%); manufactured goods, classified chiefly by materials (5.1% from 5.6%); machinery and transport equipment (2.8% from 3.5%); and miscellaneous manufactured articles (2.0% from 3.3%). For three consecutive months, movement in the beverages and tobacco index was 2.3 percent.
  

• By Commodity Group, Month-on-Month

  The month-on-month growth rate of the wholesale prices in the country increased to 2.4 percent in March from 0.4 percent in February.
  

  NOTE :

  • Uptick in prices of pork, beef, rice, selected fish species, bakery products, fruits and vegetables raised the food index in the four areas: Philippines and Luzon, 3.5 percent and 3.0 percent, respectively from -0.2 percent; Visayas, 1.0 percent from -0.1 percent; and Mindanao, 9.0 percent from 0.1 percent.
    

  • Prices of selected liquors and cigarettes were higher in Luzon. Similarly, prices of softdrinks went up in Visayas. Thus, the index for beverages and tobacco in the Philippines and Luzon accelerated to 0.3 percent from 0.1 percent and zero growth respectively and in the Visayas, 0.4 percent from 0.2 percent. Meanwhile, for three consecutive months, prices of beverages and tobacco items in Mindanao generally remained stable as its group's index registered a zero growth during the month.
    

  • Increments in the prices of copra, firewood and charcoal in Visayas pushed up the index for crude materials, inedible except fuels by 6.4 percent in March from 2.4 percent in February. Likewise, the group's index in Luzon and in the Philippines correspondingly rose to 4.7 percent and 4.6 percent brought about by the price hikes in copra, gravel and abaca. These were however, slower than their respective last month's rates of 7.5 percent and 6.7 percent. On the other hand, reductions in the prices of bamboo in Mindanao effected a 1.3 percent drop in its group's index.
    

  • Higher prices of crude petroleum oil, gasoline, kerosene, fuel oil and diesel oil were noted in Luzon. Thus, the index for mineral fuels, lubricants and related materials in the area and in the Philippines rose to 3.6 percent and 3.5 percent, respectively. Price additions in selected petroleum products in Visayas resulted to a 5.0 percent growth in its group's index. However, the downward adjustment in the price of LPG pulled down the group's index in Mindanao by -0.5 percent.
    

  • The index for chemicals, including animal and vegetable oils and fats grew by 1.9 percent in Luzon as prices of coconut oil, paints, selected pharmaceutical products, laundry and bath soaps and other washing and cleaning compounds were on the uptrend. This was however, slower than its previous month's growth rate of 3.3 percent. Upward adjustments in the prices of fertilizers resulted to a 0.2 percent adjustment in its group's index in Visayas, slower than the 1.9 percent growth last month. Meanwhile, the index of chemicals, including animal and vegetable oils and fats in Mindanao retained its previous month's growth rate of 0.1 percent. Thus, the national index moved up at a slower rate of 1.5 percent from 2.8 percent.
    

  • Movement in the index of manufactured goods classified chiefly by materials was registered at 3.9 percent in Visayas due to price increases in cement, concrete pipes, flat and angle bars. In Luzon, add-ons in the prices of selected construction materials were seen during the month. Similarly, higher prices of plywood, paper products, glass and glass products and electrical conduit pipes were also noted in Mindanao. These factors raised the group's index for manufactured goods classified chiefly by materials in Luzon by 0.2 percent and in Mindanao by 0.4 percent. These were however, slower than their previous month's rates of 0.3 percent and 0.6 percent, respectively. At the national level, the group's index went up by 0.5 percent, the same rate posted in February.
    

  • The 3.2 percent aggregate increase in the prices of electrical machinery, electrical lamps and fixtures and electrical wirings in Luzon mainly resulted to a 2.5 percent growth in the group's index for machinery and transport equipment in the Philippines. Likewise, the group's index in Visayas and Mindanao recorded a 0.1 percent growth from their corresponding last month's rates -0.1 percent and zero growth brought about by price gains in electrical appliances and storage batteries.
    

  • The group's index for miscellaneous manufactured articles in Mindanao and Visayas correspondingly increased by 0.1 percent and 0.7 percent as prices of selected office supplies and selected furniture and fixtures in the two areas went up during the month. In Luzon, movement in the index of miscellaneous manufactured articles remained at 0.1 percent. The monthly rate of change in the national index was also at 0.1 percent, slower than the 0.2 percent growth last month.
    
    _______________________________________________________________

    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.

  ---

  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: August 9, 2008