May 2009

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

p - pleminary
r - revised

Year-on-Year

• The year-on-year movement of the General Wholesale Price Index (GWPI) in the Philippines further declined to -7.3 percent in May from -5.4 percent in April. This was mainly caused by the reductions in the annual rates in the index of crude materials, inedible except fuels (-26.4% from -26.6%) and mineral fuels, lubricants and related materials (-32.7% from -28.9%). The annual growth rate in the food index slowed down to 3.6 percent from 4.3 percent; beverages and tobacco, 2.6 percent from 3.1 percent; chemicals, including animal and vegetable oils and fats, 0.8 percent from 1.3 percent; and manufactured goods classified chiefly by materials, 4.7 percent from 5.7 percent. However, a higher annual growth rate was recorded in miscellaneous manufactured articles index at 2.4 percent from 2.3 percent while the annual price movement in machinery and transport equipment index remained at its last month's rate of -0.5 percent.
  

• The annual rate of price change based on the GWPI in Luzon further decelerated to -8.5 percent in May from -6.4 percent in April. Reductions were observed in crude materials, inedible except fuels index (-27.6% from -28.2%); mineral fuels, lubricants and related materials index (-35.1% from -31.8); and in machinery and transport equipment index (-1.3% from -1.2%). Slower annual price add-ons were also seen in food items at 6.0 percent from 7.0 percent and in manufactured goods classified chiefly by materials, 5.7 percent from 6.5 percent. On the other hand, annual price increases in beverages and tobacco and chemicals, including animal and vegetable oils and fats correspondingly accelerated to 4.1 percent and 0.4 percent. Movement in the index of miscellaneous manufactured articles remained at its previous month's rate of 2.2 percent.
  

• The GWPI in Visayas continued to drop as it recorded a rate of -7.3 percent in May from -5.3 percent in April. Except for miscellaneous manufactured articles whose annual rate grew to 5.2 percent from 4.9 percent, all the other commodity groups posted negative rates in May. The annual movement in the prices of food items further dropped to -7.3 percent in May from -7.1 percent in April; beverages and tobacco, -1.4 percent from 0.5 percent; crude materials, inedible except fuels, -24.8 percent from -20.7 percent; mineral fuels, lubricants and related materials, -21.8 percent from -17.2 percent; chemicals, including animal and vegetable oils and fats, -0.3 percent from 4.8 percent; manufactured goods classified chiefly by materials, -2.8 percent from 0.6 percent; and machinery and transport equipment, -1.2 percent from -1.1 percent.
  

• A slower annual increment in the wholesale prices in Mindanao was noted at 2.1 percent in May compared with the 2.7 percent growth last month. Annual price hikes slowed in crude materials, inedible except fuels at 0.4 percent from 0.8 percent; mineral fuels, lubricants and related materials, 7.2 percent from 16.6 percent; and chemicals, including animal and vegetable oils and fats, 5.0 percent from 8.5 percent. A continued deceleration was likewise noticed in the food index at -1.0 percent from -2.4 percent and beverages and tobacco index, -3.9 percent from -0.2 percent. Higher annual increases were however recorded in the prices of the following commodity groups: manufactured goods classified chiefly by materials, 3.5 percent from 3.3 percent; machinery and transport equipment, 5.7 percent from 4.7 percent; and miscellaneous manufactured articles, 1.7 percent from 0.9 percent.
  

• By Commodity Group, Month-on-Month

  The monthly growth rate of wholesale prices of commodities at the national level generally increased to 1.1 percent in May from 0.9 percent in April. During the month, additions were noted in the prices of crude materials, inedible except fuels at 4.0 percent from -0.1 percent; chemicals, including animal and vegetable oils and fats, 1.2 percent from 0.5 percent; and miscellaneous manufactured articles, 0.2 percent from zero growth. On the other hand, slowdowns were correspondingly registered in the prices of mineral fuels, lubricants and related materials and machinery and transport equipment at 5.7 percent and 0.1 percent from 6.8 percent and 0.2 percent, respectively. Meanwhile, declines were seen in the prices of food items (-0.3%), beverages and tobacco (-0.1%) and manufactured goods classified chiefly by materials (-0.1%).
  

  NOTE :

  • The crude materials, inedible except fuels index in the Philippines accelerated to 4.0 percent in May from -0.1 percent last April. Upward adjustments in the prices of copra were observed in Luzon and Visayas as their group's index went up to 4.4 percent and 0.5 percent, respectively. Similarly, higher prices of stone, adobe blocks and pebbles raised the group's index in Mindanao by 2.1 percent.
    

  • A 1.4 percent growth posted in the chemicals, including animal and vegetable oils and fats index in Luzon was effected by the increments in the prices of coconut oil, paints and selected washing and cleaning compounds. Likewise, price gains in plastic sheets and some medicinal and pharmaceutical preparations resulted to a 0.3 percent increase in the group's index in Visayas. Thus, the index in the Philippines advanced to 1.2 percent in May from 0.5 percent in April. Meanwhile, prices of chemicals, including animal and vegetable oils and fats in Mindanao generally remained stable as no movement was noted in its index.
    

  • From zero growth, the miscellaneous manufactured articles index at the national level picked up to 0.2 percent. This can be attributed to the 0.9 percent increment in the group's monthly growth rate in Visayas as prices of selected sanitary fixtures, PVC pipes and other furniture were on the uptrend. In addition, higher prices of photographic equipment, selected footwear and other miscellaneous manufactured articles pushed up the group's index in Mindanao by 0.5 percent. Meanwhile, for three consecutive months, the group's index in Luzon moved at the rate of 0.1 percent.
    

  • Prices of crude petroleum oil and petroleum products like gasoline, kerosene and fuel oil reflected an increase of 6.5 percent in the mineral fuels, lubricants and related materials index in Luzon. Price increments were observed in the same petroleum products in Visayas as its index went up to 1.7 percent. These were however slower than the last month's rates of 7.5 percent in Luzon and 4.5 percent in Visayas. On the other hand, a decline in LPG prices in Mindanao effected a -0.1 percent decrease in its group's index. The national index also moved at a slower pace of 5.7 percent.
    

  • Upward movement in the prices of electrical appliances and storage battery raised the machinery and transport equipment index in Mindanao by 0.5 percent. On the contrary, lower prices of insulated electrical wire and selected electrical apparatus pulled down the group's index in Visayas by -0.1 percent. Meanwhile, prices of machinery and transport equipment in Luzon generally remained stable as its group's index had a zero growth. Movement in the group's index at the national level was at 0.1 percent, slower than the 0.2 percent in April.
    

  • Prices of rubber tires and tubes, plywood, marble slabs and selected paper products were up in Mindanao. Thus, its manufactured goods classified chiefly by materials index advanced to 0.5 percent. On the other hand, a drop of 0.1 percent was seen in the group's index in Luzon and in Visayas mainly due to the reduction in the prices of steel bars, G.I. sheets, and G.I. wire. The national index moved at its last month's rate of -0.1 percent.
    

  • Higher prices of selected cigarettes were noted in Luzon, hence the index for beverages and tobacco in the area went up to 0.1 percent. On the other hand, a further decline in the group's index in Visayas at -1.6 percent was due to the price reduction in selected softdrinks in the area. In Mindanao, no movement was noticed in the prices of beverages and tobacco.
    

  • The monthly change in the food index in Visayas at 0.7 percent was brought about by the upward adjustments in the prices of selected milk and milk products, fish, fruits, tubers and rootcrops. Similarly, add-ons in the prices of milled rice, eggs, selected fruits and vegetables and refined sugar raised the group's index in Mindanao by 2.6 percent. However, lower prices of pork, chicken, selected fish species, fruits and vegetables pushed down the group's index in Luzon by -0.9 percent. At the national level, the group's index dropped to -0.3 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: September 9, 2009