January 2009

Year-on-Year Inflation Rates, All Items
January 2008 - January 2009

p - pleminary
r - revised

Year-on-Year

• The annual growth rate of the General Wholesale Price Index (GWPI) at the national level registered a decline of -0.7 percent in January from 1.8 percent in December. The continued drop in the corresponding annual growth rates of crude materials, inedible except fuels and mineral fuels, lubricants and related materials index at -10.8 percent and -25.2 resulted to the downtrend. In addition, annual growth rates for manufactured goods classified chiefly by materials index moved at a slower pace of 7.5 percent in January from 7.7 percent in December; machinery and transport equipment, 1.7 percent from 3.8 percent; and miscellaneous manufactured articles, 2.3 percent from 3.9 percent. However, annual price increases were recorded in food index at 10.8 percent from 9.9 percent; beverages and tobacco, 7.0 percent from 6.7 percent; and chemicals, including animal and vegetable oils and fats, 6.5 percent from 3.8 percent.
  

• On an annual basis, wholesale prices in Luzon also decelerated to -1.3 percent in January from 1.6 percent in December due to further decreases in the respective annual growth rates of crude, materials, inedible except fuels and mineral fuels, lubricants and related materials index at -11.5 percent and -28.0 percent. A lower annual price hike was also observed in the following commodity groups: manufactured goods classified chiefly by materials, 7.8 percent from 7.9 percent; machinery and transport equipment, 2.0 percent from 4.8 percent; and miscellaneous manufactured articles, 2.1 percent from 3.8 percent. On the other hand, higher annual price increments were correspondingly noted in the index of food and chemicals, including animal and vegetable oils and fats at 14.1 percent and 6.0 percent from 13.1 percent and 2.0 percent, respectively. The index for beverages and tobacco was still at its last month's rate of 7.4 percent.
  

• Moreover, the annual rate of price gain based on the GWPI in Visayas further eased to -1.6 percent in January from -0.3 percent in December. Reductions were correspondingly observed in food index at -5.3 percent from -5.4 percent; crude materials, inedible except fuels, -10.9 percent from 0.9 percent; mineral fuels, lubricants and related materials, -13.0 percent from -10.5 percent; and machinery and transport equipment, -0.8 percent from -0.6 percent. Slower annual price adjustments were noticed in the following commodity groups: chemicals, including animal and vegetable oils and fats, 9.9 percent from 16.5 percent; manufactured goods classified chiefly by materials, 10.8 percent from 12.1 percent; and miscellaneous manufactured articles, 7.2 percent from 8.3 percent. Meanwhile, a higher annual price hike was seen in beverages and tobacco index at 6.5 percent from 6.0 percent.
  

• The annual movement of wholesale prices in Mindanao however went up to 5.7 percent in January from 4.9 percent in December. This can be attributed to higher annual price gains in the following commodity groups: food items (6.6% from 5.6%); beverages and tobacco (3.8% from 3.0%); crude materials, inedible except fuels (3.6% from 0.9%); chemicals, including animal and vegetable oils and fats (7.1% from 5.0%); manufactured goods classified chiefly by materials (3.8% from 3.2%); and machinery and transport equipment (2.4% from 1.3%). Meanwhile, a slower annual rate was noted in mineral fuels, lubricants and related materials index at 13.9 percent from 14.1 percent while that for beverages and tobacco index was zero.
  

• By Commodity Group, Month-on-Month

  Wholesale prices of commodities at the national level continued to post a negative growth rate of -1.9 percent in January from -2.2 percent in December due to further deceleration in the prices of crude materials, inedible except fuels at -7.3 percent from -0.9 percent. Similarly, downward movements in the prices of mineral fuels, lubricants and related materials and machinery and transport equipment were correspondingly recorded at -11.7 percent and -1.3 percent. On the other hand, positive growth rates were noted in the following commodity groups: food, 0.8 percent from 1.6 percent; beverages and tobacco and miscellaneous manufactured articles, 0.2 percent from zero growth; chemicals, including animal and vegetable oils and fats, 4.6 percent from -2.0 percent; and manufactured goods classified chiefly by materials, 0.6 percent from 0.4 percent.
  

  NOTE :

  • Lower prices of copra in Luzon and Visayas correspondingly pushed down the index for crude materials, inedible except fuels in the two areas by -7.9 percent and -4.6 percent. Thus, the national index dropped to -7.3 percent. However, additions in the prices of pebbles, sand and gravel raised the group's index in Mindanao by 1.6 percent.
    

  • The mineral fuels, lubricants and related materials index in the Philippines went down by -11.7 percent in January from -12.1 percent in December; Luzon, -13.1 percent from -12.9 percent; and Visayas, -3.0 percent from -11.2 percent. This is attributed to the rollbacks in the prices of gasoline and other petroleum products. On the other hand, prices of mineral fuels, lubricants and related materials in Mindanao generally remained stable as its group's index had a zero growth during the month.
    

  • Reductions in the prices of selected electrical equipment brought down the machinery and transport equipment index in Luzon by -2.0 percent and in the Philippines by -1.3 percent. However, prices of selected transport equipment were higher in Mindanao resulting to an increment of 3.1 percent in the group's index. The group's index in Visayas posted a zero growth in January.
    

  • The food index at the national level eased to 0.8 percent in January from 1.6 percent in December due to the -0.9 percent decline in the group's index in Visayas brought about by downward movements in the prices of selected food items such as fish, meat, fruits and vegetables, sugar and selected spices. On the other hand, upward adjustments in the prices of rice, eggs, milk, noodles, coffee and selected fruits and vegetables effected a 0.2 percent increase in the group's index in Mindanao. Add-ons in the prices of poultry feeds were also noticed in the area. Similarly, increased prices on the said food items along with the price gain in copra meal contributed to the 1.1 percent growth in the group's index in Luzon, slower than 1.9 percent price adjustment last month.
    

  • The 0.7 percent monthly change in the index for beverages and tobacco in Mindanao was brought about by the price increments on selected cigarette products in the area. Moreover, higher prices of selected liquors and softdrinks pulled up the group's index in Visayas by 0.1 percent. Thus the national index for beverages and tobacco rose to 0.2 percent. In Luzon, no movement was observed in the prices of beverages and tobacco as its index registered a zero growth during the month.
    

  • Meanwhile, higher prices of selected footwear, undergarments and office supplies raised the miscellaneous manufactured articles index in Mindanao by 0.5 percent. Similarly, the group's index in Visayas advanced to 0.4 percent as prices of selected textbooks and school supplies were on the uptrend during the month. A 0.2 percent change in the group's index in Luzon was caused by the price additions on selected musical instruments and school supplies. The monthly growth rate in the national index was also at 0.2 percent.
    

  • Upward adjustments in prices of some fabrics and the price gains observed on selected rubber and paper products resulted to a 0.7 percent increase in the manufactured goods classified chiefly by materials index in Mindanao. Meanwhile, the group's index in Visayas had a negative rate of 0.4 percent due to the reductions in the prices of selected construction materials such as steel bars and angle bars and some paper products. In Luzon, the group's index moved at its previous month's rate of 0.6 percent. This mixed price trend contributed to the 0.6 percent increment in the national index.
    

  • Prices of coconut oil and selected fertilizer were up in Luzon thus, the chemicals, including animal and vegetable oils and fats index accelerated by 5.9 percent. The group's index in Mindanao likewise grew to 2.0 percent due to price additions in selected pharmaceutical products and fertilizers. However, the movement of the index in Visayas was lower as it dropped to -1.8 percent brought about by the price cuts on selected fertilizers. At the national level, the group's index gained 4.6 percent, higher than -2.0 percent registered last month.
    
    _______________________________________________________________

    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: May 5, 2009