August 2007

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

p - pleminary
r - revised

Year-on-Year

• The country's year-on-year inflation rate based on the General Wholesale Price Index (GWPI) grew by 0.8 percent in August, the same rate recorded in July. Annual inflation rates of beverages and tobacco and miscellaneous manufactured articles were correspondingly higher at 2.0 percent and 0.9 percent from 1.8 percent and 0.8 percent, respectively. On the other hand, the annual rate of change in the prices of mineral fuels, lubricants and related materials was still negative at -7.3 percent from -8.0 percent. Moreover, slower annual price increases were observed in food items at 3.7 percent from 3.9 percent; crude materials, inedible except fuels, 10.8 percent from 14.3 percent; chemicals, including animal and vegetable oils and fats, 5.4 percent from 6.1 percent; and manufactured goods classified chiefly by materials, 5.0 percent from 5.1 percent while inflation for machinery and transport equipment moved at its last month's rate of 0.2 percent.
  

• Inflation in Luzon remained at -0.2 percent in August as a negative rate was posted in the annual prices of mineral fuels, lubricants and related materials at -7.7 percent from -8.4 percent. Inflation for machinery and transport equipment was still recorded at -0.4 percent. In addition, slower annual price gains were noted in the following commodity groups: food items, 1.7 percent from 2.2 percent; crude materials, inedible except fuels, 11.4 percent from 15.4 percent; chemicals, including animal and animal and vegetable oils and fats, 5.6 percent from 6.6 percent; and manufactured goods classified chiefly by materials, 4.6 percent from 4.9 percent. On the contrary, higher annual growth rates were noticed correspondingly in beverages and tobacco and miscellaneous manufactured articles at 1.6 percent and 0.6 percent from 1.2 percent and 0.5 percent, respectively.
  

• Meanwhile, inflation rate in Visayas went up at a faster pace of 6.5 percent in August from 6.2 percent in July. Three commodity groups recorded higher annual inflation rates: food items, 14.7 percent in August from 14.0 in July; beverages and tobacco, 4.1 percent from 3.8 percent; and manufactured goods classified chiefly by materials, 3.9 percent from 3.8 percent. Meanwhile, lower price additions were correspondingly seen in chemicals, including animal and vegetable oils and fats and machinery and transport equipment at 4.0 percent and 2.0 percent from their respective last month's rates of 4.9 percent and 2.4 percent. Inflation for crude materials, inedible except fuels remained at its last month's growth rate of 11.3 percent. Annual price adjustments for mineral fuels, lubricants and related materials dropped to -3.2 percent from 3.0 percent while inflation for miscellaneous manufactured articles was zero.
  

• Annual inflation rate in Mindanao rose to 3.9 percent in August from 3.6 percent in July. Annual price increments were higher in food items at 5.8 percent from 4.9 percent; chemicals, including animal and vegetable oils and fats, 4.5 percent from 4.4 percent; manufactured goods classified chiefly by materials, 8.5 percent from 8.4 percent; and miscellaneous manufactured articles, 4.2 percent from 3.8 percent. The rest of the commodity groups moved at their previous month's rates.
  

• By Commodity Group, Month-on-Month

  The general level of wholesale prices increased at a slower rate of 0.2 percent in August from 0.5 percent in July.
  

  NOTE :

  • The food index in Luzon went up by 0.2 percent in August, the same rate posted last July. This was due to the upward adjustments in the price levels of selected food items in the area particularly eggs, fish species, meat and meat products, milk, tonic food drinks and some fruits and vegetables. Add-ons in these food items and milled rice also raised the group's index in Visayas and in Mindanao by 2.0 percent and 0.8 percent, respectively. These were however slower than their last month's corresponding growth rates of 2.8 percent and 1.2 percent. The national index likewise slowed down to 0.5 percent from 0.7 percent.
    

  • Increments in the prices of selected liquors and cigarettes in Luzon pushed up the index for beverages and tobacco in the area by 0.4 percent from zero growth and in the Philippines, 0.3 percent from 0.2 percent. Additions in the prices of softdrinks effected a 0.3 percent increase in its group's index in Visayas. Meanwhile, prices of beverages and tobacco in Mindanao generally remained stable during the month as its group's index had a zero growth.
    

  • Prices of copra in Luzon were on a downtrend. Thus, the index for crude materials, inedible except fuels in the area and for the whole country correspondingly registered negative rates of -3.3 percent and -3.8 percent. Prices of crude materials, inedible except fuels generally remained stable in Visayas and Mindanao as their group's index recorded zero growth during the month.
    

  • The index for mineral fuels, lubricants and related materials in Mindanao grew by 0.1 percent due to the continuous price hikes of LPG. Meanwhile, the group's index in Luzon eased to 0.7 percent from 1.9 percent while in Visayas, no price movement was observed as zero growth was recorded in its monthly rate of change. In the Philippines, the group's index moved up at a slower rate of 0.6 percent from 1.7 percent.
    

  • Price gains in fertilizers and vulcanizing cement in Visayas and the add-ons in the prices of selected pharmaceutical products in Mindanao pushed up the index for chemicals, including animal and vegetable oils and fats in the two areas by 0.1 percent. However, the downward price adjustments of coconut oil primarily resulted to the 0.7 percent drop in its group's index in Luzon and -0.4 percent in the Philippines.
    

  • The index for manufactured goods classified chiefly by materials inched up by 0.1 percent in Visayas as prices of luggage and traveling bags were higher in August. Likewise, the upward adjustments in the prices of paper and paper products raised its group's index in Mindanao by 0.1 percent. Reductions in the prices of plywood and cement however caused the group's index in Luzon and in the Philippines to decline by -0.1 percent during the month.
    

  • The index for machinery and transport equipment in the Philippines and in Luzon climbed by 0.1 percent due to higher price mark-ups on selected electrical appliances. Monthly inflation of machinery and transport equipment in Visayas and Mindanao was zero.
    

  • Prices of selected office supplies were notably higher in Luzon. Hence, the index for miscellaneous manufactured articles moved up by 0.1 percent from zero growth. Increments in the prices of photofilms and selected office supplies were also observed in Visayas. Thus, the group's index in the area rose by 0.6 percent. Meanwhile, the 0.3 percent uptick in the group's index in Mindanao was brought about by price additions in footwear and selected wristwatches. All these factors contributed to the 0.1 percent increase in the national index.
    
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    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.

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: November 28, 2007