October 2006

r - revised
p - preliminary

• Year-on-Year

  The country's year-on-year inflation rate in the General Wholesale Price Index (GWPI) decelerated to 5.0 percent in October from 6.1 percent in September. This was primarily due to the 5.7 percentage points (3.0% from 8.7%) slowdown in the inflation rate of mineral fuels, lubricants and related materials. Moreover, annual price increases in food items was slower at 7.2 percent from 7.3 percent; crude materials, inedible except fuels, 3.3 percent from 4.1 percent; and chemicals, including animal and vegetable oils and fats, 5.6 percent from 5.7 percent. However, inflation rates for beverages and tobacco and manufactured goods classified chiefly by materials were correspondingly higher at 3.0 percent and 5.0 percent from 2.8 percent and 4.9 percent, respectively. Inflation for machinery and transport equipment and miscellaneous manufactured articles were at their last month's respective rates of 4.2 percent and 3.2 percent.

  • Likewise, inflation rate in Luzon slipped to 4.7 percent in October from 6.2 percent in September. Slower annual movements in the prices of the following commodity groups were recorded during the month: food items, 7.7 percent from 8.2 percent; crude materials, inedible except fuels, 4.1 percent from 4.6 percent; mineral fuels, lubricants and related materials, 2.1 percent from 7.9 percent; chemicals, including animal and vegetable oils and fats, 6.3 percent from 6.6 percent; and manufactured goods classified chiefly by materials, 4.9 percent from 5.0 percent. Faster annual inflation rate was however seen in beverages and tobacco at 2.1 percent from 2.0 percent. Inflation for machinery and transport equipment and miscellaneous manufactured articles remained at their corresponding previous month's positive rates of 3.5 percent and 3.0 percent.
    

  • Inflation rate in Visayas rose to 8.5 percent in October from 8.3 percent in September. This was brought about by the higher annual rates noted in the prices of food items (10.3% from 7.0%), beverages and tobacco (6.4% from 6.3%), chemicals, including animal and vegetable oils and fats (3.1% from 2.4%) and manufactured goods classified chiefly by materials (6.4% from 5.7%). Meanwhile, slower annual growth rates were observed in the prices of mineral fuels, lubricants and related materials (10.2% from 18.4%) and miscellaneous manufactured articles (6.1% from 6.5%). Inflation for machinery and transport equipment was at its previous month's rate of 11.0 percent while annual price adjustments for crude materials, inedible except fuels dropped to -1.4 percent from 0.9 percent.
    

  • Inflation rate in Mindanao eased by 0.2 percentage point to 3.5 percent in October from 3.7 percent in September. Sluggish annual inflation rates were registered in the prices of food items, 0.8 percent from 1.6 percent; mineral fuels, lubricants and related materials, 11.0 percent from 11.4 percent; chemicals, including animal and vegetable oils and fats, 2.3 percent from 2.4 percent; and machinery and transport equipment, 3.2 percent from 3.5 percent. However, higher annual inflation rates were noticed in the prices of beverages and tobacco at 5.8 percent from 5.3 percent; manufactured goods classified chiefly by materials, 6.5 percent from 5.1 percent; and miscellaneous manufactured articles, 1.8 percent from 1.4 percent. Movement in the annual prices of crude materials, inedible except fuels was negative at -2.3 percent from 2.0 percent.

• By Commodity Group, Month-on-Month

  The overall wholesale prices continued to move downward at -0.7 percent in October compared from -1.8 percent last month.

  • The decline in crude oil prices and the series of price reductions in petroleum products (gasoline, diesel, kerosene and LPG) mainly pushed down the index for mineral fuels, lubricants and related materials in the four areas: Philippines, -5.3 percent; Luzon, -5.7 percent; Visayas, -3.8 percent; and Mindanao, -0.2 percent.
    

  • Prices of selected food items such as rice, milk and milk products, fish, cereal preparations and fruits and vegetables in Luzon and Visayas went up during the month. Thus, the food index in the two areas accelerated by 1.0 percent and 3.1 percent, respectively. Meanwhile, the group's index in Mindanao decreased by -0.6 percent due to price reductions in some fish species, fruits and vegetables and starch and starch products. At the national level, the group's index increased by 1.1 percent from 0.4 percent.

  • Increments in the prices of selected cigarettes and liquors in Luzon and Mindanao pushed up the index of beverages and tobacco in the Philippines by 0.2 percent from -0.1 percent; and Luzon and Mindanao, 0.1 percent and 0.4 percent, respectively from zero growth. In Visayas, movement in the group's index remained at 0.1 percent.
    

  • Upward movements in the prices of copra in Luzon caused the index for crude materials, inedible except fuels in the area and in the Philippines to increase by 2.3 percent and 1.9 percent, respectively. Prices of crude materials, inedible except fuels in Visayas and Mindanao remained stable as the group's index registered a zero growth during the month.
    

  • Higher prices of coconut oil effected a 0.3 percent growth in the group's index for chemicals, including animal and vegetable oils and fats in Luzon. Likewise, the group's index in Visayas and Mindanao grew by 0.7 percent increase due to the upward adjustments in the prices of insecticide, paints and laundry soap. Thus, the overall index picked up by 0.4 percent.
    

  • Price hikes in tires, thread, inner tubes and cotton contributed to the 0.7 percent uptick in the group's index for manufactured goods classified chiefly by materials in Visayas and 0.3 percent in the Philippines. The group's index in Mindanao also went up by 1.4 percent due to add-ons in the prices of paper products, cement, aluminum tubes and concrete nails. In Luzon, the group's index gained by 0.1 percent, slower than the 0.2 percent growth last month as prices of lumber, deformed bars, flat bars, G.I. sheets and cyclone wires were higher during the month.
    

  • Prices of insulated electrical wires were generally up in Luzon during the month. These raised the group's index for machinery and transport equipment in the Philippines and Luzon by 0.1 percent. Meanwhile, prices of machinery and transport equipment in Visayas generally remained stable as they recorded a zero growth during the month. On the contrary, a -0.2 percent drop in the group's index was observed in Mindanao due to the decreases in the prices of selected appliances and electrical lamps and fixtures.
    

  • The miscellaneous manufactured articles index rose by 0.1 percent in the Philippines and 0.4 percent in Mindanao as prices of selected plumbing fixtures and accessories, undergarments, UPVC pipes and other school and office supplies were higher during the month. On the other hand, downward price adjustments of photofilm, wristwatch and mattress in Visayas resulted to a -0.4 percent decline in its group's index. Prices of miscellaneous manufactured articles in Luzon posted a zero growth during the month.

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  Source: National Statistics Office
  Manila, Philippines
  
  Page last revised: April 13, 2007