September 2008

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

p - pleminary
r - revised

Year-on-Year

NOTE :

• The country's annual growth rate of the General Wholesale Price Index (GWPI) decelerated to 16.0 percent in September from 18.6 percent in August. This can be attributed to the slower annual price increments observed in food items at 11.2 percent in September from 11.4 percent in August; crude materials, inedible except fuels, 20.6 percent from 22.7 percent; and mineral fuels, lubricants and related materials, 42.5 percent from 56.0 percent. However, higher annual growth rates were recorded in the prices of the following commodity groups: beverages and tobacco, 6.8 percent from 4.9 percent; chemicals, including animal and vegetable oils and fats, 9.1 percent from 8.8 percent; manufactured goods classified chiefly by materials, 8.0 percent from 7.5 percent; machinery and transport equipment, 3.6 percent from 3.4 percent; and miscellaneous manufactured articles, 3.3 percent from 2.6 percent.
  

• On an annual basis, wholesale prices in Luzon slowed to 18.2 percent in September compared to the 20.8 percent growth in August. Slower annual gains were correspondingly noted in the prices of crude materials, inedible except fuels and mineral fuels, lubricants and related materials at 22.5 percent and 44.4 percent from 23.4 percent and 58.7 percent, respectively. On the other hand, price increments in the following commodity groups were higher during the month: food, 14.3 percent from 13.2 percent; beverages and tobacco, 7.3 percent from 4.7 percent; chemicals, including animal and vegetable oils and fats, 8.2 percent from 7.7 percent; manufactured goods classified chiefly by materials, 7.7 percent from 7.0 percent; and miscellaneous manufactured articles, 3.1 percent from 2.5 percent. For three consecutive months, the annual growth rate of machinery and transport equipment remained at 4.3 percent.
  

• Similarly, the annual growth rate of the GWPI in Visayas eased to 7.6 percent in September from 9.9 percent in August. Negative annual growth rates were correspondingly noted in food and machinery and transport equipment index at -2.5 percent and -0.1 percent. Except for beverages and tobacco index which remained at its last month's rate of 6.0 percent, all the commodities recorded slower annual price increases. The annual growth rate in crude materials, inedible except fuels index decelerated to 11.1 percent from 21.6 percent; mineral fuels, lubricants and related materials, 29.8 percent from 41.4 percent; chemicals, including animal and vegetable oils and fats, 17.5 percent from 18.0 percent; and manufactured goods classified chiefly by materials, 15.5 percent from 17.8 percent.
  

• The annual price movement of the GWPI in Mindanao further slid to 6.8 percent in September from 9.2 percent in August. Slower annual price hikes in the following commodity groups were observed during the month: food (6.6% from 13.2%); beverages and tobacco (3.9% from 4.7%); crude materials, inedible except fuels (5.2% from 10.1%); mineral fuels, lubricants and related materials (22.5% from 23.9%); and chemicals, including animal and vegetable oils and fats (7.8% from 8.1%). However, higher annual increases were seen in the prices of manufactured goods classified chiefly by materials at 5.0 percent from 4.2 percent; machinery and transport equipment, 2.2 percent from 1.3 percent; and miscellaneous manufactured articles, 0.6 percent from 0.1 percent.
  

• By Commodity Group, Month-on-Month

  The monthly growth rate of the wholesale prices of commodities in the Philippines still posted a negative rate of 1.4 percent in September from -2.0 percent in August.
  

  • The food index at the national level dropped by -0.6 percent in September from 0.6 percent in August. This was due to the 5.4 percent decline in the price levels of food items in Mindanao particularly rice, selected fish species, fruits, vegetables, tubers and root crops. Likewise, downward adjustments in the prices of beef, pork, milk and milk products, rice and selected fish, fruits and vegetables contributed to the 3.1 percent reduction in the food index in Visayas. Add-ons in the prices of bread, biscuits, cereal preparations, dried fish, cooking oil and coffee along with the price gains in copra meal raised the group's index in Luzon by 0.5 percent, slower than the 0.9 percent growth last month.
    

  • Upward adjustments in the prices of selected liquor, cigarette products and softdrinks correspondingly effected the 1.9 percent and 2.5 percent monthly growth rates in the respective group's index of beverages and tobacco in the Philippines and Luzon. Prices of beverages and tobacco items in Visayas and Mindanao generally remained stable as their group's index posted a zero growth this month.
    

  • Lower prices of copra in Visayas further pushed down the index for crude materials, inedible except fuels in the area by -5.5 percent. On the other hand, higher prices of abaca and copra in Luzon raised its group's index by 2.4 percent and in the Philippines, 1.5 percent. Meanwhile, prices of crude materials, inedible except fuels in Mindanao remained stable as the group's index had a zero growth during the month.
    

  • The index for mineral fuels, lubricants and related materials in the Philippines declined by -5.4 percent from -5.9 percent; Luzon, -5.4 percent from -6.1 percent; Visayas, -7.7 percent from -5.5 percent; and Mindanao, -1.1 percent from -0.7 percent due to the rollbacks in the prices of gasoline, LPG and other petroleum products.
    

  • Higher prices of coconut oil, fertilizer, paints, laundry and bath soap and other industrial chemicals and selected pharmaceutical products in Luzon pushed up the index for chemicals, including animal and vegetable oils and fats by 1.3 percent. Likewise, the group's index in Mindanao gained by 1.0 percent as prices of vulcanizing cement and selected laundry soap were up during the period. In Visayas, additions in the prices of selected basic chemicals and coconut oil effected a 0.1 percent growth, slower than the 0.9 percent last month. All these factors contributed to the 1.2 percent increment in the national index for chemicals, including animal and vegetable oils and fats.
    

  • The index for manufactured goods classified chiefly by materials in Visayas dropped by -1.9 percent, the same rate observed in August. Meanwhile higher prices of selected construction materials along with price hikes in selected paper products raised the index in the Philippines by 0.6 percent from 0.4 percent; Luzon, 0.8 percent from 0.6 percent; and Mindanao, 1.9 percent from 0.4 percent.
    

  • The index for machinery and transport equipment in Visayas and Mindanao correspondingly advanced to 0.1 percent and 0.3 percent as selected electrical appliances were priced higher during the period. However, the index in Luzon was at its previous month's price level and had a zero growth. In the Philippines, movement in the group's index remained at 0.1 percent.
    

  • Decreases in the prices of selected sanitary fixtures and wristwatch pulled down the miscellaneous manufactured articles index in Mindanao by -0.1 percent. On the contrary, the group's index in Luzon rose by 0.7 percent due to the increased prices in ready made apparel, undergarments and photographic films. Likewise, the group's index in Visayas picked up by 0.5 percent effected by the price increases in selected textbooks and undergarments. This was however slower than the 1.7 percent growth recorded last month. At the national level, the group's index went up by 0.6 percent from 0.2 percent.
    

  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: December 17, 2008