January 2008

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

p - pleminary
r - revised

Year-on-Year

• The year-on-year growth rate of the General Wholesale Price Index (GWPI) rose to 8.0 percent in January from 6.8 percent in December. This can be attributed to the higher annual rates observed in food items (3.5% from 3.4%); crude materials, inedible except fuels (12.2% from 11.9%); mineral fuels, lubricants and related materials (25.9% from 20.8%); chemicals, including animal and vegetable oils and fats (6.7% from 5.5%); machinery and transport equipment (1.1% from 0.1%); and miscellaneous manufactured articles (2.7% from 1.1%). However, the annual rate for beverages and tobacco and manufactured goods classified chiefly by materials correspondingly slowed down to 1.4 percent and 3.3 percent from their respective December rates of 2.0 percent and 3.9 percent.
  

• Growth rate in Luzon went up to 1.4 percentage points to 8.3 percent in January from 6.9 percent in December. Higher increases were recorded in the prices of the following commodity groups: food items, 2.6 percent from 2.3 percent; crude materials, inedible except fuels, 12.4 percent from 11.9 percent; mineral fuels, lubricants and related materials, 27.2 percent from 21.7 percent; chemicals, including animal and vegetable oils and fats, 6.2 percent from 5.5 percent; machinery and transport equipment, 0.6 percent from -0.6 percent; and miscellaneous manufactured articles, 2.4 percent from 0.8 percent. Meanwhile, slower annual movement in the prices of beverages and tobacco was registered at 1.1 percent from 1.4 percent.
  

• Similarly, the annual growth rate in Visayas picked up to 7.5 percent in January from 6.0 percent in December. Faster annual price adjustments were noted in food items at 7.4 percent in January from 6.3 percent in December; mineral, fuels, lubricants and related materials, 18.4 percent from 14.4 percent; chemicals, including animal and vegetable oils and fats, 10.6 percent from 4.3 percent; manufactured goods classified chiefly by materials, 1.9 percent from 1.5 percent; and miscellaneous manufactured articles, 4.4 percent from 2.9 percent. Meanwhile, slower annual price gains were noted in beverages and tobacco at 3.5 percent from 3.9 percent; crude materials, inedible except fuels, 13.5 percent from 15.4 percent; and machinery and transport equipment, 1.4 percent from 1.8 percent.
  

• The annual increase in the WPI for Mindanao eased to 5.6 percent in January from 6.8 percent in December due to the deceleration in the annual inflation rates of the following commodity groups: food items, 5.8 percent from 7.5 percent; beverages and tobacco, 2.3 percent from 4.0 percent; chemicals, including animal and vegetable oils and fats, 6.7 percent from 7.1 percent; and manufactured goods classified chiefly by materials, 5.0 percent from 8.5 percent. Meanwhile, annual price additions were higher in crude materials, inedible except fuels at 5.4 percent from 5.0 percent; machinery and transport equipment, 3.5 percent from 2.4 percent; and miscellaneous manufactured articles, 3.3 percent from 2.7 percent. Inflation for mineral fuels, lubricants and related materials moved at its December rate of 12.1 percent.
  

• By Commodity Group, Month-on-Month

  The general level of wholesale prices in the country climbed by 0.6 percent in January from 0.4 percent in December.
  

  NOTE :

  • Upward movement in the price levels of selected food items in Luzon such as meat and meat products, milk, some fish species, sugar, tonic drinks and some fruits and vegetables pushed up the food index in the area by 0.2 percent in January, slower than the 1.5 percent growth last December. The food index at the national level dropped by -0.1 percent in January from 1.3 percent in December. This was due to the corresponding declines of 0.9 percent and 0.8 percent in the price levels of selected food items in Visayas and Mindanao, particularly other cereal preparations, some fruits and vegetables, tubers and rootcrops.
    

  • Prices of beverage and tobacco items in Luzon and Mindanao generally remained stable during the month as their group? index posted a zero growth. However, the beverages and tobacco index declined by -0.3 percent in Visayas brought about by the price decreases in some cigarette products and selected softdrinks in the area. Hence, the national index dropped by -0.1 percent from zero growth.
    

  • Additions in the prices of copra in Luzon and Visayas along with the price hikes in gravel, sand, peebles and adobe stones raised the index for crude materials, inedible except fuels in the three areas: Philippines, 2.3 percent; Luzon, 1.8 percent; and Visayas, 7.8 percent. However, lower price of bamboo pulled down its group? index in Mindanao by -1.0 percent.
    

  • Higher prices of crude petroleum oil, petroleum products such as gasoline, kerosene, fuel oil, diesel oil and LPG were noticed in Luzon. Thus, the index for mineral fuels, lubricants and related materials in the area and in the Philippines rose to 0.3 percent. Similarly, additions in the prices of LPG in Mindanao effected a 0.2 percent increase in the group? index, but this was slower than the 4.5 percent growth last month. Meanwhile, the downward adjustment in the price of lubricating oil in Visayas pulled down its group? index by -0.2 percent.
    

  • The index for chemicals, including animal and vegetable oils and fats in the Philippines, in Luzon and in Visayas correspondingly went up by 0.3 percent, 1.9 percent and 6.0 percent, respectively. This was brought about by the add-ons in the prices of coconut oil, fertilizer, paints, laundry soap and other chemical products. Prices of chemicals, including animal and vegetable oils and fats in Mindanao remained stable as the group? index registered a zero growth during the month.
    

  • Prices of lumber, plywood, cement, angle bars and G.I. sheets in Luzon were on the uptrend during the month. Likewise, higher prices of concrete pipes and selected paper products were observed in Visayas. All of these contributed to the increment in the group? index for manufactured goods classified chiefly by materials in Luzon and in the Philippines by 0.7 percent and in Visayas by 0.5 percent. Meanwhile, the manufactured goods classified chiefly by materials index in Mindanao inched up by 0.1 percent as prices of rubber tire, barbed wire and other concrete products were higher during the month. This was however slower than its last month? rate of 0.8 percent.
    

  • The gain of 0.8 percent in the index for machinery and transport equipment in the Philippines, 0.6 percent in Luzon, 0.2 percent in Visayas and 1.9 percent in Mindanao were caused by the upward adjustments in the prices of selected electrical appliances and electrical lamps and fixtures.
    

  • Prices of some office supplies, furniture and fixtures like bed and mattress and undergarments were higher in Luzon. Hence, the index for miscellaneous manufactured articles moved up by 1.9 percent. Increments in the prices of PVC electrical pipe and some musical instruments were also observed in Visayas. Thus, the group? index in the area rose by 1.5 percent. Meanwhile, the 0.9 uptick in the group? index in Mindanao was brought about by price additions in selected clothing such as blouses and undershirts. All these factors contributed to the 1.8 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: June 18, 2008