March 2009

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

p - pleminary
r - revised

Year-on-Year

• The annual growth rate of the General Wholesale Price Index (GWPI) at the national level continued a negative trend at -4.5 in March from -1.4 percent in February. Declines were noted in the annual growth rates of crude materials, inedible except fuels at -23.8 percent in March from -16.7 percent in February; mineral fuels, lubricants and related materials, -30.0 percent from -26.6 percent; and machinery and transport equipment, -0.7 percent from 1.9 percent. Similarly, slower annual price adjustments were posted in the following commodity groups: food, 7.0 percent from 10.8 percent; beverages and tobacco, 6.6 percent from 7.4 percent; chemicals, including animal and vegetable oils and fats, 0.6 percent from 3.5 percent; and manufactured goods classified chiefly by materials, 6.1 percent from 7.5 percent. The annual price change in miscellaneous manufactured articles remained at its previous month's rate of 2.3 percent.
  

• The annual price movement of the GWPI in Luzon further dropped to -5.3 in March from -2.2 percent in February brought about by continuous decreases in the respective annual growth rates of crude materials, inedible except fuels and mineral fuels, lubricants and related materials at -25.5 percent and -32.9 percent. Likewise, negative annual price hikes were correspondingly observed in chemicals, including animal and vegetable oils and fats and machinery and transport equipment at -1.3 percent and -1.4 percent from 2.3 percent and 2.0 percent, respectively. In addition, lower annual price movements were noted in food index at 10.4 percent from 13.9 percent; beverages and tobacco, 7.8 percent from 8.7 percent; manufactured goods classified chiefly by materials, 6.6 percent from 7.7 percent; and miscellaneous manufactured articles, 2.1 percent from 2.2 percent.
  

• Similarly, the annual movement of wholesale prices in Visayas further eased to -4.1 percent in March from -2.4 percent in February. Reductions were registered in food index at -6.0 percent from -5.2 percent; crude materials, inedible except fuels, -18.2 percent from -13.0 percent; mineral fuels, lubricants and related materials, -18.5 percent from -14.5 percent; and machinery and transport equipment, -1.1 percent from -1.0 percent. Slower annual price additions were also recorded in beverages and tobacco index at 6.5 percent from 6.9 percent; chemicals, including animal and vegetable oils and fats, 8.4 percent from 8.5 percent; manufactured goods classified chiefly by materials, 3.4 percent from 7.7 percent; and miscellaneous manufactured articles, 4.9 percent from 5.4 percent.
  

• In Mindanao, the annual rate of price gain based on the GWPI was lower at 3.1 percent in March compared to the 6.5 percent growth in February. It was mainly due to the decline in the food index at -1.7 percent from a growth of 7.2 percent. Negative annual rate was likewise noted in the beverages and tobacco index at -1.0 percent, the same rate posted in February. Likewise, slower annual price add-ons were correspondingly seen in manufactured goods classified chiefly by materials and machinery and transport equipment index at 5.1 percent and 3.6 percent from their respective previous month's rates of 5.5 percent and 3.7 percent. On the other hand, higher annual growth rates were recorded in the following commodity groups: crude materials, inedible except fuels, 5.0 percent from 3.6 percent; mineral fuels, lubricants and related materials, 16.0 percent from 15.5 percent; and miscellaneous manufactured articles, 1.1 percent from 1.0 percent. Movement in the index for chemicals including animal and vegetable oils and fats remained at its previous month's rate of 7.8 percent.
  

• By Commodity Group, Month-on-Month

  The general level of wholesale prices of commodities in the country moved at -0.4 percent in March, the same rate recorded last February. During the period, reductions were noticed in the prices of the following commodity groups: food items, -0.1 percent from -0.2 percent; beverages and tobacco, -0.4 percent from 0.4 percent; crude materials, inedible except fuels, -4.3 percent from -0.3 percent; chemicals, including animal and vegetable oils and fats, -1.3 percent from -0.1 percent; manufactured goods classified chiefly by materials and machinery and transport equipment, -0.7 percent and -0.1 percent, respectively from 0.4 percent. On the other hand, positive growth rates were correspondingly seen in miscellaneous manufactured articles and mineral fuels, lubricants and related material index at 0.1 percent from 0.3 percent and -2.8 percent, respectively.
  

  NOTE :

  • The crude materials, inedible except fuels index in the Philippines went down by -4.3 percent in March from -0.3 percent in February. This was due to the 5.0 percent drop in the group's index in Luzon brought about by the reductions in the prices of copra and abaca fiber during the month. On the other hand, prices of crude materials, inedible except fuels in Visayas and Mindanao generally remained stable as their group's index had a zero growth during the month.
    

  • Downward adjustments in the prices of coconut oil and selected fertilizer pulled down the chemicals, including animal and vegetable oils and fats index in Luzon by -1.6 percent. However, a slower 0.1 percent increase was noticed in the group's index in Visayas resulting from price add-ons in selected vitamins and other pharmaceutical products in the area. All these factors contributed to a 1.3 percent decline in the overall index.
    

  • Lower prices of steel bars, selected paper products and other selected construction materials in Luzon and Visayas pushed down the index for manufactured goods classified chiefly by materials in the two areas by -0.9 percent and -0.2 percent, respectively. Hence, the national index dropped to -0.7 percent.
    

  • Movement in the beverages and tobacco index at -0.5 percent in Luzon was due to price decreases in selected liquors and cigarettes in the area. Hence, the group's index in the Philippines went down by -0.4 percent. Meanwhile, no movements were observed in the prices of beverages and tobacco in Visayas and Mindanao as the group's index had a zero growth.
    

  • A 0.1 percent drop in machinery and transport equipment index was seen in Luzon and in the Philippines as prices of selected transport equipment and insulated electrical wires were on the downtrend. On the other hand, higher prices of selected electrical appliances and fixtures effected a 0.1 percent increase in the group's index in Visayas.
    

  • The monthly change in the food index in Luzon, Mindanao and in the Philippines was noted at -0.1 percent. This can be attributed to the downward movements in the prices of food items like rice, selected fruits and vegetables, roots and tubers, fish, and sugar. On the contrary, add-ons in the prices of noodles, instant coffee, selected vegetables, and spices along with higher prices of poultry feeds raised the group's index in Visayas by 0.1 percent, the same rate registered last month.
    

  • Meanwhile, prices of lubricating oil reflected an increment of 0.2 percent in the index for mineral fuels, lubricants and related materials in Visayas and at the national level, by 0.1 percent. In Luzon, while prices of crude petroleum oil were on the upward trend, the group's index posted a zero growth as it was offsetted by the roll backs in the prices of some petroleum products.
    

  • The group's index for miscellaneous manufactured articles advanced by 0.2 percent in Visayas as higher prices of selected photographic equipment and sanitary fixtures were observed during the period. In the same way, price mark-ups in selected office supplies raised the group's index in Luzon by 0.1 percent, but it was slower than its last month's rate of 0.2 percent. The national index moved at a slower pace of 0.1 percent.
    
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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: July 29, 2009