July 2008

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

p - pleminary
r - revised

Year-on-Year

NOTE :

• The year-on-year growth rate of the General Wholesale Price Index (GWPI) in the Philippines went up to 20.8 percent in July from 19.3 percent in June. Annual price increments were higher in crude materials, inedible except fuels at 34.8 percent in July from 31.0 percent in June; mineral fuels, lubricants and related materials, 64.8 percent from 57.2 percent; chemicals, including animal and vegetable oils and fats, 11.3 percent from 11.1 percent; manufactured goods classified chiefly by materials, 7.1 percent from 5.7 percent; and miscellaneous manufactured articles, 2.6 percent from 2.5 percent. However, the annual growth rate for the food index slowed down to 11.2 percent from 12.6 percent while the annual movements of beverages and tobacco index and machinery and transport equipment index remained at their last month's respective rates of 4.9 percent and 3.4 percent.
  

• The annual rate of price increase based on the GWPI in Luzon advanced to 23.2 percent in July from 21.0 percent in June. This was brought about by higher annual rates recorded in all the commodity groups except for the food index whose annual growth rate eased to 12.4 percent from 13.0 percent. The annual price additions were higher in beverages and tobacco at 4.8 percent from 4.6 percent; crude materials, inedible except fuels, 36.8 percent from 32.4 percent; mineral fuels, lubricants and related materials, 68.0 percent from 60.2 percent; chemicals, including animal and vegetable oils and fats, 11.0 percent from 10.9 percent; manufactured goods classified chiefly by materials, 6.2 percent from 4.6 percent; machinery and transport equipment, 4.3 percent from 4.2 percent; and miscellaneous manufactured articles, 2.5 percent from 2.4 percent.
  

• The annual growth rate of the GWPI in Visayas however decelerated to 12.9 percent in July from 13.9 percent in June due to the negative annual growth rate posted in machinery and transport equipment index at -0.2 percent from 0.2 percent. In addition, the annual growth rate of the food index was at a slower rate of 1.9 percent from 7.7 percent; beverages and tobacco, 6.3 percent from 6.6 percent; and miscellaneous manufactured articles, 6.5 percent from 6.7 percent. On the other hand, higher annual price increases were observed in the following commodity groups: crude, materials inedible except fuels (27.1% from 26.2%); mineral fuels, lubricants and related materials (49.6% from 41.5%); chemicals, including animal and vegetable oils and fats (17.0% from 15.9%); and manufactured goods classified chiefly by materials (20.2% from 18.9%).
  

• Likewise, the annual rate of change of wholesale prices in Mindanao slipped to 9.4 percent in July from 10.1 percent in June. Slower annual price add-ons were noticed in food items at 13.4 percent from 15.2 percent; beverages and tobacco, 4.7 percent from 5.3 percent; and machinery and transport equipment, 1.3 percent from 1.4 percent. Meanwhile, annual price hikes were higher in mineral fuels, lubricants and related materials at 24.9 percent from 24.8 percent; chemicals, including animal and vegetable oils and fats, 8.2 percent from 8.1 percent; and miscellaneous manufactured articles, 0.3 percent from 0.1 percent. The annual growth rates of crude materials, inedible except fuels and manufactured goods classified chiefly by materials remained at their last month's figures of 10.1 percent and 3.9 percent, respectively.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the general level of wholesale prices moved up at a slower rate of 1.8 percent in July from 4.5 percent in June.
  

  • The food index at the national level dropped to -0.6 percent in July from 3.5 percent in June. This was attributed to the 2.7 percent decline in the prices of food items in Visayas particularly selected fish species, fruits, vegetables, tubers and root crops. Lower prices of the same food items along with those of chicken and beef were recorded in Luzon. Price reduction of copra meal was also observed in the area. These factors contributed to the decline of the food index in Luzon by -0.3 percent. Reduction in the prices of pork, eggs, selected vegetables and fish species also pulled down the food index in Mindanao by -0.5 percent.
    

  • Add-ons in the prices of selected cigarette products in Luzon and the general upward movements in the prices of liquors and cigarettes in Visayas pushed up the index for beverages and tobacco: Philippines and Luzon at 0.2 percent from 0.1 percent and zero growth, respectively and in the Visayas, 0.5 percent from 0.4 percent. Prices of beverages and tobacco in Mindanao remained stable as the group's index posted a zero growth.
    

  • Lower price of copra in Luzon and Visayas correspondingly pushed down the index for crude materials, inedible except fuels by -0.6 percent and -4.6 percent. The decline in the price of charcoal in Visayas also contributed to the downtrend. Prices of items in crude materials, inedible except fuels group in Mindanao however remained stable. The national index for crude materials, inedible except fuels dropped by -0.9 percent.
    

  • Higher prices of crude petroleum oil and selected petroleum products in Luzon raised its index for mineral fuels, lubricants and related materials by 6.9 percent and in the Philippines, 6.6 percent. These were however, slower than their respective last month's rates of 11.7 percent and 11.6 percent. The increment in the group's index in Visayas also slid to 7.0 percent compared to 12.6 percent in June as prices of petroleum products improved during the month. Meanwhile, the group's index in Mindanao had a zero growth this month from 8.2 percent in June.
    

  • The index for chemicals, including animal and vegetable oils and fats grew by 0.9 percent in Visayas as prices of coconut oil and selected basic industrial chemicals were on the uptrend. On the other hand, the downward adjustments in the prices of coconut oil primarily resulted to the 0.5 percent drop in its group's index in Luzon and -0.3 percent in the national index. The group's index in Mindanao had a zero growth in July from 2.1 percent in June.
    

  • Price hikes in plywood, cement, hollow blocks, concrete pipes, steel bars, deformed bars, and G.I. sheets effected a 1.8 percent growth in the index for manufactured goods classified chiefly by materials in Luzon. Likewise, upward adjustments in the prices of selected construction materials raised the group's index in Visayas by 1.1 percent while in Mindanao, the group's index remained stable. The group's index at the national level increased by 1.5 percent, lower than the 1.9 percent growth last month.
    

  • Prices of machinery and transport equipment in Luzon generally remained stable as its group's index registered a zero growth during the period. However, reductions in the prices of selected electrical appliances in Visayas resulted to a drop in the group's index by -0.4 percent. Monthly growth rate of machinery and transport equipment in Mindanao and at the national level was at -0.1 percent, the same rate noted in June.
    

  • The index for miscellaneous manufactured articles in Mindanao gained by 0.1 percent due to price increments in selected office supplies. In Visayas, prices of miscellaneous manufactured articles appeared stable as zero growth was seen in its group's index. Meanwhile, the group's index in Luzon and in the Philippines still moved at their last month's rate of 0.1 percent.
    

  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: October 24, 2008