February 2008

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

p - pleminary
r - revised

Year-on-Year

• The year-on-year growth rate of the General Wholesale Price Index (GWPI) in the Philippines increased to 8.5 percent in February from 8.0 percent in January. All the commodity groups registered higher annual growth rates except for the manufactured goods classified chiefly by materials whose annual growth rate decelerated to 3.0 percent from 3.3 percent. The annual growth rate of food index moved higher at 3.8 percent in February from 3.6 percent in January; beverages and tobacco, 1.5 percent from 1.4 percent; crude materials, inedible except fuels, 19.3 percent from 12.2 percent; mineral fuels, lubricants and related materials, 26.4 percent from 25.9 percent; chemicals, including animal and vegetable oils and fats, 9.4 percent from 6.7 percent; machinery and transport equipment, 1.3 percent from 1.1 percent; and miscellaneous manufactured articles, 2.8 percent from 2.7 percent.
  

• The annual growth rate of the GWPI in Luzon advanced to 9.0 percent in February from 8.3 percent in January. This can be attributed to the faster annual price movements in the following commodity groups: food (3.1% from 2.6%), crude materials, inedible except fuels (20.6% from 12.4%), mineral fuels, lubricants and related materials (28.0% from 27.2%), chemicals, including animal and vegetable oils and fats (9.5% from 6.2%), machinery and transport equipment (0.9% from 0.6%), and miscellaneous manufactured articles (2.6% from 2.4%). On the contrary, the annual price increment of manufactured goods classified chiefly by materials was slower at 2.7 percent from 3.1 percent while annual price change in beverages and tobacco remained at 1.1 percent.
  

• On the other hand, the annual price increases based on the GWPI for Visayas decelerated by 0.2 percentage point to 7.3 percent in February from 7.5 percent in January. Sluggish annual growth rates were recorded in the prices of food items, 7.0 percent from 7.4 percent; mineral fuels, lubricants and related materials, 16.8 percent from 18.4 percent; and machinery and transport equipment, 1.1 percent from 1.4 percent. The annual growth rate for beverages and tobacco index was however, higher at 3.7 percent from 3.5 percent; crude materials, inedible except fuels, 13.9 percent from 13.5 percent; manufactured goods classified chiefly by materials, 3.2 percent from 1.9 percent; and miscellaneous manufactured articles, 5.3 percent from 4.4 percent. The annual growth rate for chemicals, including animal and vegetable oils and fats remained at its previous month's rate of 10.6 percent.
  

• In Mindanao, the annual growth rate of the GWPI slowed down to 5.5 percent in February from 5.6 percent in January. This was due to the corresponding slowdowns in the annual growth rates of food index and crude materials, inedible except fuels index at 5.0 percent and 5.2 percent from 5.8 percent and 5.4 percent, respectively. However, faster annual price adjustments were correspondingly noticed in chemicals, including animal and vegetable oils and fats and manufactured goods classified chiefly by materials at 6.8 percent and 5.6 percent from their respective January's rates of 6.7 percent and 5.0 percent. Movements in the beverages and tobacco index remained at 2.3 percent; mineral fuels, lubricants and related materials, 12.1 percent; machinery and transport equipment, 3.5 percent; and miscellaneous manufactured articles, 3.3 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the wholesale prices at the national level generally increased by 0.3 percent in February, slower than the 0.6 percent growth in January.
  

  NOTE :

  • The overall food index dropped by -0.2 percent in February from zero growth. This is correspondingly effected by the 0.2 percent and 0.1 percent decline in the price levels of food items in Luzon and Visayas particularly selected fish species, fruits and vegetables and tubers and root crops. On the other hand, upward adjustments in the prices of milled rice, milk, meat products, noodles and selected bakery products contributed to the 0.1 percent growth in the food index in Mindanao.
    

  • Add-ons in the prices of some liquors and cigarettes correspondingly resulted to a 0.1 percent and 0.2 percent monthly growth in the beverage and tobacco index in the Philippines and Visayas. Prices of beverages and tobacco items in Luzon and Mindanao generally remained stable as its group's index registered a zero growth during the month.
    

  • Higher prices of copra, abaca, gravel and sand in Luzon pushed up the index for crude materials, inedible except fuels in the area and in the Philippines by 7.5 percent and 6.7 percent, respectively. Similarly, the group's index in Visayas moved up by 2.6 percent, slower than the last month's rate of 7.8 percent. Movements in the prices of crude materials, inedible except fuels in Mindanao generally remained stable during the month.
    

  • The downward adjustment in the prices of petroleum products such as gasoline, kerosene, fuel oil, diesel oil and LPG pulled down the index for mineral fuels, lubricants and related materials in the three areas: Philippines, -0.3 percent; Luzon, -0.2 percent; and Visayas, -1.6 percent. Prices of mineral fuels, lubricants and related materials in Mindanao remained stable as the group's index had a zero growth during the month.
    

  • Prices of coconut oil, fertilizer and paints in Luzon were on the uptrend during the month. Likewise, higher prices of paints, varnish and selected medicines were seen in Mindanao. All these factors raised the group's index for chemicals, including animal and vegetable oils in Luzon by 3.3 percent and in Mindanao by 0.1 percent. In Visayas, prices of chemicals, including animal and vegetable oils remained stable as the group's index posted a zero growth. Overall, the group's index climbed by 2.6 percent from 2.2 percent.
    

  • The gain of 1.3 percent in the index for manufactured goods classified chiefly by materials in Visayas was attributed to the upward adjustments in the prices of luggage, traveling bags, plywood, and some knitted fabrics. Similarly, a 0.6 percent growth in the group's index was noticed in Mindanao as prices of steel bars, deformed bars and other paper products were up during the period. Meanwhile, manufactured goods classified chiefly by materials index in Luzon moved up by 0.3 percent as prices of lumber, cement, some concrete products, angle bars and paper products were higher during the month. This was however slower than its last month's rate of 0.7 percent. At the national level, the group's index also moved at a slower rate of 0.4 percent from 0.7 percent.
    

  • The index for machinery and transport equipment in Luzon and in the Philippines correspondingly went up to 0.3 percent and 0.2 percent due to mark-ups in the prices of storage battery, selected lamps and fixtures and electrical wirings. These were slower than their last month's respective rates of 0.6 percent and 0.8 percent. Meanwhile, reductions in the prices of dry cell battery and selected electrical appliances brought down the group's index in Visayas by -0.1 percent. Movements in the prices of machinery and transport equipment in Mindanao generally remained stable in February as its index recorded a zero growth.
    

  • The group's index for miscellaneous manufactured articles advanced by 1.8 percent in Visayas as prices of selected furniture and fixtures such as bed, photofilm, camera and candles in the area went up during the month. Add-ons in the prices of selected office supplies and construction materials effected a 0.1 percent gain in the group's index in Luzon. This was however slower than its last month's rate of 1.9 percent. On the contrary, the decline in the prices of selected footwear, wristwatch and musical instrument in Mindanao pulled down its group's index by -0.1 percent. These mixed trends resulted a 0.2 percent growth in the national index.
    
    _______________________________________________________________

    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: July 9, 2008