May 2008

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

*r - revised

Year-on-Year

Year-on-year growth rate of the General Wholesale Price Index (GWPI) in the Philippines further went up to 13.7 percent in May compared to 11.4 percent in April. The annual price increments were higher in food items at 8.6 percent in May from 8.5 percent in April; beverages and tobacco, 5.2 percent from 4.8 percent; crude materials, inedible except fuels, 28.0 percent from 25.9 percent; mineral fuels, lubricants and related materials, 38.8 percent from 29.6 percent; chemicals, including animal and vegetable oils and fats, 10.1 percent from 9.5 percent; and manufactured goods classified chiefly by materials, 4.0 percent from 3.2 percent. However, the annual growth rate of miscellaneous manufactured articles index slowed down to 2.6 percent from 2.8 percent while the annual growth rate of machinery and transport equipment index remained at 3.7 percent.

• • On an annual basis, wholesale prices in Luzon jumped to 14.6 percent in May from 12.2 percent in April mainly brought about by higher annual price movements in mineral fuels, lubricants and related materials at 41.1 percent from 31.5 percent. The annual growth rate of crude materials, inedible except fuels also advanced to 29.0 percent from 27.4 percent; chemicals, including animal and vegetable oils and fats, 9.8 percent from 9.6 percent; manufactured goods classified chiefly by materials, 2.7 percent from 2.2 percent; and machinery and transport equipment, 4.5 percent from 4.2 percent. On the other hand, the annual rate of price adjustment in miscellaneous manufactured articles was slower at 2.4 percent from 2.7 percent while those for food and beverages and tobacco remained at 8.1 percent and 4.8 percent, respectively.
    

  • In Visayas, the annual growth rate of the GWPI rose to 10.5 percent in May from 9.0 percent in April. All the commodity groups recorded higher annual price changes except for machinery and transport equipment whose annual growth rate decelerated to 0.4 percent from 1.1 percent. Annual price additions were higher in food items (6.1% from 5.8%), beverages and tobacco (7.6% from 7.3%), crude materials, inedible except fuels (26.7% from 20.1%), mineral fuels, lubricants and related materials (25.3% from 20.5%), chemicals, including animal and vegetable oils and fats (15.5% from 12.7%), manufactured goods classified chiefly by materials (15.1% from 11.8%), and miscellaneous manufactured articles (6.5% from 5.8%).
    

  • Likewise, the annual rate of price increase based on the GWPI in Mindanao was higher at 9.1 percent in May from 7.9 percent in April. Price increments in the following commodity groups went up during the month: food, 14.7 percent from 14.5 percent; beverages and tobacco, 5.5 percent from 2.3 percent; crude materials, inedible except fuels, 9.8 percent from 7.3 percent; mineral fuels, lubricants and related materials, 15.3 percent from 6.6 percent; chemicals, including animal and vegetable oils and fats, 6.8 percent from 4.8 percent; and manufactured goods classified chiefly by materials, 5.0 percent from 4.6 percent. Meanwhile, the annual rate of price uptick in machinery and transport equipment and miscellaneous manufactured articles correspondingly eased to 2.0 percent and 1.5 percent from 2.7 percent and 1.9 percent, respectively.

By Commodity Group, Month-on-Month

The monthly growth rate of wholesale prices in the Philippines accelerated to 2.5 percent in May from 1.9 percent in April.

• A 1.0 percent growth was noted in the food index in Visayas brought about by the increases in the prices of beef, canned fish, rice, cereal preparations, selected fruits and vegetables, sugar, cooking oil and animal feeds during the month. Moreover, the group's index in Mindanao rose to 1.1 percent due to upward price adjustments in rice, milk, flour, canned sardines, sugar, some fruits and vegetables and processed animal feeds. Likewise, higher prices of pork, chicken, meat products, rice, milk, bread, biscuits, selected fish species, fruits, vegetables, sugar and coffee along with price additions in copra meal and desiccated coconut in Luzon resulted to a 0.1 percent rise in its group's index. This was however slower than its last month's rate of 1.8 percent. All these factors effected the 0.3 percent growth in the national index for food.
  

• Higher prices of beer and softdrinks in Mindanao pushed up the index for beverages and tobacco in the area by 3.9 percent from zero growth. Increments in the prices of softdrinks also contributed to the 0.3 percent growth in the group's index in Visayas, but this was slower than the 4.6 percent price change last month. Meanwhile, prices of beverages and tobacco in Luzon generally remained stable as the group's index registered a zero growth. These mixed price trends resulted to a 0.4 percent increase in the group's index in the Philippines, slower than 3.4 percent last month.
  

• Upward adjustments in the prices of copra, bamboo, and adobe stones in Visayas correspondingly raised the index for crude materials, inedible except fuels in the area and in the Philippines by 6.0 percent and 3.7 percent. In Mindanao, the group's index gained 2.5 percent from 0.8 percent. Price add-ons in copra and abaca however, caused the group's index in Luzon to grow by 3.5 percent, slower than 3.8 percent in April.
  

• The soaring prices of crude oil and petroleum products pulled up the index for mineral fuels, lubricants and related materials in the four areas: Philippines and Luzon, 8.5 percent from 5.2 percent and 5.6 percent, respectively; Visayas, 7.8 percent from 2.9 percent; and Mindanao, 8.7 percent from 0.1 percent.
  

• Higher prices of coconut oil, selected medicines and chemical products in Luzon and Visayas pushed their corresponding group's index for chemicals, including animal and vegetable oils and fats by 0.9 percent and 5.4 percent. In Mindanao, add-ons in the prices of paints, fertilizer, and washing and cleaning compounds also raised the group's index in the area by 3.3 percent. Thus, the national index moved up to 1.6 percent from -0.1 percent.
  

• The index of manufactured goods classified chiefly by materials in Luzon grew by 0.6 percent as prices of cement, concrete products, reinforced steel bars, G.I. pipes and other glass products were observed higher during the month. Likewise, the 3.3 percent gain in the group's index in Visayas was attributed to the upward price adjustments in plywood, cement, concrete pipes and reinforced steel bars. Price hikes in rubber tires, plywood, travelling bags, marble slabs, glass and products in Mindanao also contributed to the 0.3 percent growth in its group's index. All these factors resulted to a 0.8 percent growth in the national index for manufactured goods classified chiefly by materials from 0.3 percent in April.
  

• A 0.1 percent increase was registered in the monthly growth rate of machinery and transport equipment index in Luzon due to higher prices of storage battery and electrical wires during the period. However, reductions in the prices of selected electrical appliances brought down the group's index in Mindanao by -0.5 percent. Meanwhile, no movement was seen in the machinery and transport equipment index in Visayas and at the national level as they registered zero growth during the month.
  

• The group's index for miscellaneous manufactured articles in Visayas and in the Philippines correspondingly rose to 0.7 percent and 0.1 percent as prices of selected furniture and fixtures, UPVC water pipes and selected office supplies were on the uptrend during the month. On the other hand the downward adjustments in the prices of selected furniture, footwear, ready made apparels and undergarments pulled down the group's index in Mindanao by -0.2 percent. In Luzon, the index recorded a zero growth during the month.
  

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: October 1, 2008