December 2006

r - revised

The average annual inflation rate of the General Wholesale Price Index (GWPI) for 2006 was 8.4 percent, lower by 3 percentage points than the 11.4 percent in 2005. The average inflation rate for beverages and tobacco eased to 4.3 percent in 2006 from 6.8 percent in 2005; mineral fuels, lubricants and related materials, 19.9 percent from 36.1 percent; chemicals including animals and vegetable oils and fats, 7.6 percent from 10.5 percent; manufactured goods classified chiefly by materials, 5.5 percent from 8.3 percent; machinery and transport equipment, 3.9 percent from 4.9 percent; and miscellaneous manufactured articles, 4.4 percent from 5.0 percent. On the other hand, the average inflation for food was at its last year's rate of 6.4 percent while the average inflation for crude materials, inedible except fuels rose to 3.0 percent from 0.1 percent in the previous year.

Likewise, average annual inflation rate in Luzon decelerated to 8.9 percent in 2006 from 12.5 percent in 2005. The following commodity groups recorded lower average inflation during the year: beverages and tobacco (3.7% from 7.4%); mineral fuels, lubricants and related materials (20.3% from 37.1%); chemicals including animal and vegetable oils and fats (8.9% from 11.7%); manufactured good classified chiefly by materials (5.3% from 9.1%); machinery and transport equipment (3.4% from 5.7%); and miscellaneous manufactured articles (4.6% from 5.3%). Meanwhile, average inflation for crude materials, inedible except fuels increased by 2.9 percent from -1.2 percent while inflation for food remained at 6.8 percent.

In the Visayas, the average inflation rate in 2006 was at 8.9 percent, higher than the 6.0 percent rate in 2005. The average inflation for food picked up to 6.9 percent from 3.4 percent; beverages and tobacco, 8.4 percent from 2.1 percent; manufactured goods classified chiefly by materials, 7.2 percent from 4.2 percent; machinery and transport equipment, 9.6 percent from 2.1 percent; and miscellaneous manufactured articles, 5.6 percent from 1.7 percent. However, the average inflation for crude materials, inedible except fuels, mineral fuels, lubricants and related materials and chemicals including animal and vegetable oils and fats were correspondingly slower at 1.8 percent, 21.8 percent, and 3.9 percent from their respective last year's average rates of 3.7 percent, 29.6 percent and 4.2 percent.

The average inflation rate in Mindanao was at a slow pace of 3.9 percent in 2006 from 7.6 percent in 2005. Slower average inflation rates were observed in food at 2.7 percent from 6.0 percent; beverages and tobacco, 4.6 percent from 7.8 percent; crude materials, inedible except fuels, 7.2 percent from 22.6 percent; mineral fuels, lubricants and related materials, 10.3 percent from 27.4 percent; chemicals including animal and vegetable oils and fats, 2.6 percent from 8.2 percent; and miscellaneous manufactured articles, 1.9 percent from 5.1 percent. Meanwhile, the average inflation for machinery and transport equipment was up by 2.6 percent from 1.3 percent while average inflation for manufactured goods classified chiefly by materials moved at its last year's average rate of 5.4 percent

• Year-on-Year

  • The year-on-year inflation rate of the GWPI noted at 4.8 percent in December was slower than the 4.9 percent posted in November. The annual rate of price adjustments went down in the following commodity groups: food items, 6.2 percent from 8.2 percent; beverages and tobacco, 1.9 percent from 2.6 percent; machinery and transport equipment, 2.4 percent from 4.1 percent; and miscellaneous manufactured articles, 2.7 percent from 2.9 percent. Higher annual price increases were however observed in crude materials, inedible except fuels at 16.9 percent in December from 6.9 percent in November; mineral fuels, lubricants and related materials, 3.2 percent from 1.6 percent; chemicals, including animal and vegetable oils and fats, 7.1 percent from 5.3 percent; and manufactured goods classified chiefly by materials, 5.0 percent from 4.8 percent.
    

  • Inflation rate in Luzon slowed to 4.8 percent in December from 4.9 percent in November. Annual movements in the prices of food items eased to 6.3 percent in December from 8.8 percent in November; beverages and tobacco, 1.0 percent from 1.7 percent; machinery and transport equipment, 2.0 percent from 3.4 percent; and miscellaneous manufactured articles, 2.8 percent from 2.9 percent. On the other hand, increases in the prices of abaca, copra, and rattan caused a double-digit inflation rate in crude materials, inedible except fuels at 20.2 percent from 8.2 percent. Likewise, faster annual rates were seen in the prices of mineral fuels, lubricants and related materials, 3.3 percent from 1.6 percent; chemicals, including animal and vegetable oils and fats, 8.4 percent from 6.2 percent; and manufactured goods classified chiefly by materials, 5.0 percent from 4.4 percent
    

  • In the Visayas, inflation rate decelerated to 6.9 percent in December from 7.4 percent in November brought about by the decline in the prices of firewood, charcoal and pebbles in the area. Thus, the inflation for crude materials, inedible except fuels was at -2.1 percent from -1.5 percent. Similarly, lower annual price gains were noticed in food items (9.2% from 9.7%), beverages and tobacco (5.2% from 6.5%), chemicals, including animal and vegetable oils and fats (3.2% from 3.3%); manufactured goods classified chiefly by materials (7.6% from 8.7%); and machinery and transport equipment (6.2% from 10.8%). Meanwhile, inflation for mineral fuels, lubricants and related materials grew by 3.3 percentage points to 6.4 percent from 3.1 percent. Inflation for miscellaneous manufactured articles was still at its previous month's rate of 4.0 percent.
    

  • Inflation rate in Mindanao slipped to 2.4 percent in December from 2.7 percent in November. This can be attributed to the slower rates recorded in the prices of the following commodity groups: food items, 2.7 percent from 2.8 percent; chemicals, including animal and vegetable oils and fats, 0.8 percent from 1.2 percent; manufactured goods classified chiefly by materials, 6.5 percent from 7.2 percent; machinery and transport equipment, 2.5 percent from 3.3 percent; and miscellaneous manufactured articles, 1.5 percent from 2.1 percent. Annual price movements for crude materials, inedible except fuels further dropped to -0.4 percent from -0.2 percent due to reduced prices of bamboo. Inflation for the rest of the commodity groups was still at their last month's rates.

• By Commodity Group, Month-on-Month

  The general level of the wholesale prices at the national level went up to 0.7 percent in December compared to -0.1 percent last November.
  

  • Higher prices of fish, tubers and rootcrops, selected fruits and vegetables, and canned preserved fruits pushed up the index for food in Visayas by 1.6 percent. Likewise, increases in the prices of the same food items and meat raised the index for food items in Luzon and in the Philippines by 0.4 percent and 0.5 percent, respectively. These were however slower than their last month's corresponding growths of 0.8 percent and 0.6 percent. Prices of food items in Mindanao generally remained stable as its index posted a zero growth during the month.
    

  • Add-ons in the prices of selected liquor brought about the 0.1 percent increase in the beverages and tobacco index in Luzon. Meanwhile, the group's index in Visayas and Mindanao registered zero growth for the period of December.
    

  • Upward adjustments in the prices of copra and abaca resulted to a 7.8 percent growth in the group's index in Luzon. The group's index in Mindanao also moved up slowly at 0.2 percent from 2.2 percent as prices of charcoal, pebbles and gravel and sand improved during the month. Prices of crude materials, inedible except fuels generally remained stable in Visayas as the group's index was observed at zero growth from -0.1. The overall index picked up by 6.7 percent.
    

  • Increases in the prices of crude petroleum oil were noticed in Luzon. Thus, the index for mineral fuels, lubricants and related materials in the area and in the Philippines rose to 0.8 percent and 0.7 percent, respectively. However, the group's index in Visayas and Mindanao had zero growth in December from their respective last month's rates of -0.1 percent and -10.9 percent.
    

  • The index for chemicals, including animal and vegetable oils and fats in the Philippines and Luzon correspondingly gained by 1.8 percent and 2.2 percent due to the upward movements in the prices of coconut oil, paints and selected other medical and pharmaceutical preparations. In contrast, prices of chemicals including animal and vegetable oils and fats in Visayas and Mindanao were generally stable during the month.
    

  • The manufactured goods classified chiefly by materials index inched up by 0.8 percent in Luzon and 0.7 percent in the Philippines as prices of tires, lumber, cement, hollow blocks, and G.I. sheets were higher during the month. Meanwhile, the group's index in Visayas and Mindanao had zero growth in December .
    

  • Prices of machinery and transport equipment in the four areas generally remained stable as their indices registered zero growth during the month.
    

  • Except for Mindanao where observed price additions in some miscellaneous manufactured articles such as footwear, photofilm and wrist watch effected an increase of 0.1 percent, prices for miscellaneous manufactured articles in all the other three areas were stable during the month.

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: May 24, 2007