October 2008

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

p - pleminary
r - revised

Year-on-Year

NOTE :

• The annual growth rate of the General Wholesale Price Index (GWPI) at the national level further slowed down to 11.8 percent in October from 16.0 percent in September. This was due to the slower movement posted in the annual growth rate of crude materials, inedible except fuels index at 1.9 percent from 20.6 percent. Except for miscellaneous manufactured articles index which has a higher annual growth rate of 3.9 percent, all the commodities recorded slower annual price increases. The annual growth rate in the food index decelerated to 9.3 percent in October from 11.2 percent in September; beverages and tobacco, 6.7 percent from 6.8 percent; mineral fuels, lubricants and related materials, 28.2 percent from 42.5 percent; chemicals, including animal and vegetable oils and fats, 7.3 percent from 9.1 percent; manufactured goods classified chiefly by materials, 7.4 percent from 8.0 percent; and machinery and transport equipment, 3.4 percent from 3.6 percent.
  

• Annual movements of wholesale prices in Luzon also eased to 13.1 percent in October compared to the 18.2 percent growth in September brought about by the reduction in the annual growth rate of crude materials, inedible except fuels at 2.8 percent from 22.5 percent. Likewise, annual price gains in the following commodity groups were lower during the month: food (11.7% from 14.3%); mineral fuels, lubricants and related materials (29.1% from 44.4%); chemicals, including animal and vegetable oils and fats (5.6% from 8.2%); manufactured goods classified chiefly by materials (7.3% from 7.7%); and machinery and transport equipment (4.2% from 4.3%). On the other hand, price increases in beverages and tobacco and miscellaneous manufactured articles correspondingly accelerated to 7.4 percent and 3.8 percent from 7.3 percent and 3.1 percent, respectively.
  

• Similarly, the annual growth rate of the GWPI in Visayas went down to 5.0 percent in October from 7.6 percent in September. Negative annual growth rates were noted in food index at -3.8 percent from -2.5 percent; crude materials, inedible except fuels index, -8.1 percent from 11.1 percent; and machinery and transport equipment, -0.1 percent, the same rate registered last month. Lower annual price hikes were correspondingly noticed in mineral fuels, lubricants and related materials and manufactured goods classified chiefly by materials at 20.3 percent and 11.9 percent from 29.8 percent and 15.5 percent, respectively. Meanwhile, a higher annual increase was seen in the price of chemicals, including animal and vegetable oils and fats at 18.0 percent from 17.5 percent. The indexes for beverages and tobacco and miscellaneous manufactured articles remained at their respective previous month's rate of 6.0 percent and 8.3 percent.
  

• On the other hand, the annual change of the wholesale prices in Mindanao moved up by 0.1 percentage point to 6.9 percent in October from 6.8 percent in September. The annual price additions were higher in food items at 6.7 percent from 6.6 percent; chemicals, including animal oils and fats, 9.7 percent from 7.8 percent and miscellaneous manufactured articles, 1.5 percent from 0.6 percent. However, slower annual rates were observed in beverages and tobacco index at 2.7 percent from 3.9 percent; mineral fuels, lubricants and related materials index, 21.7 percent from 22.5 percent; manufactured goods classified chiefly by materials index, 4.9 percent from 5.0 percent; and machinery and transport equipment index, 2.0 percent from 2.2 percent. The annual growth rate of crude materials, inedible except fuels index remained at its last month's figure of 5.2 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the general level of wholesale prices further dropped to -2.4 percent in October from -1.4 percent in September. Prices of mineral fuels, lubricants and related materials continued to decelerate at -7.7 percent from -5.4 percent. Reductions in the prices of the following commodity groups also contributed to the downtrend: beverages and tobacco (-0.1% from 1.9%); crude materials, inedible except fuels (-11.8% from 1.5%); chemicals, including animal and vegetable oils and fats (-0.7% from 1.2%); manufactured goods classified chiefly by materials (-0.3% from 0.6%); and machinery and transport equipment (-0.1% from 0.1%). Meanwhile, positive monthly growth rates were correspondingly noted in the food index and miscellaneous manufactured articles index at 0.1 percent and 0.7 percent, respectively.
  

  • Lower prices of copra pushed down the index for crude materials, inedible except fuels in the three areas: Luzon and Philippines, -11.8 percent; and Visayas, -17.2 percent. Meanwhile, prices of crude materials, inedible except fuels in Mindanao remained stable as the group's index had a zero growth during the month.
    

  • The continuous price rollbacks in gasoline, LPG and other petroleum products contributed to a drop in the mineral fuels, lubricants and related materials index in the Philippines by -7.7 percent from -5.4 percent; Luzon, -8.3 percent from -5.4 percent; Visayas, -4.1 percent from -7.7 percent; and Mindanao, -0.3 percent from -1.1 percent.
    

  • A decline in the prices of coconut oil registered a negative growth of 1.3 percent in the index for chemicals, including animal and vegetable oils and fats in Luzon, thereby causing a decrease in the national index by -07 percent. On the contrary, the group's index in Visayas advanced by 0.5 percent as prices of selected chemicals, soap and other washing and cleaning compounds were higher during the period. A 1.8 percent growth was likewise seen in the group's index in Mindanao due to price hikes in fertilizer and selected pharmaceutical products.
    

  • Price cuts on selected construction materials in Luzon and selected glass products and paper products in Mindanao effected a 0.1 percent decrease in their indexes for manufactured goods classified chiefly by materials. Likewise, lower prices of selected concrete products, deformed bars and angle bars further pushed down the group's index in Visayas by -2.9 percent. Hence, a negative growth of 0.3 percent was posted in the national index during the month.
    

  • The index for machinery and transport equipment in Luzon and in the Philippines decreased by -0.1 percent and in Mindanao by -0.3 percent as prices of selected electrical appliances were on the downtrend. In Visayas, movement in the group's index remained at 0.1 percent.
    

  • Downward adjustments in the prices of softdrinks caused a drop of 1.1 percent in the beverages and tobacco index in Mindanao, and in the Philippines, -0.1 percent from 1.9 percent. However, additions in the prices of selected liquors and cigarette products brought about the 0.1 percent increase in the group's monthly growth rate in Luzon, slower than the 2.5 percent. Prices of beverages and tobacco items in Visayas generally remained stable as its group's index posted a zero growth this month.
    

  • Reduction in the prices of pork, beef, rice, refined sugar, cooking oil and other selected fruits and vegetables pulled down the food index in Visayas by -0.6 percent. Meanwhile, a 0.3 percent growth recorded in the group's index in Mindanao was effected by the increases in the prices of eggs, meat, powdered milk, selected fish species, instant coffee, selected fruits and vegetables and tubers and root crops. Adjustment in the prices of poultry feeds also contributed to the uptrend. Likewise, higher prices of meat, dairy products, selected fresh fish species, dried fish, bakery products, selected fruits and vegetables in Luzon resulted to a slower 0.1 percent increase in its group's index from its last month's rate of 0.5 percent. Thus, the national index for food advanced to 0.1 percent from -0.6 percent.
    

  • The group's index for miscellaneous manufactured articles in Mindanao and in the Philippines correspondingly advanced to 0.8 percent and 0.7 percent as prices of selected furniture and fixtures were up during the period. Likewise, price gains in selected textbooks and office supplies resulted to a 0.4 percent growth in the group's index in Visayas, but this was slower than the 0.5 percent price adjustment in September. Meanwhile, prices of miscellaneous manufactured articles in Luzon moved at its last month's rate of 0.7 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: January 20, 2009