September 2007

Year-on-Year Inflation Rates, All Items
September 2006 - September 2007

p - pleminary
r - revised

Year-on-Year

• The year-on-year inflation rate of the General Wholesale Price Index (GWPI) advanced to 3.2 percent in September from 0.8 percent in August. Annual price increments were higher in beverages and tobacco at 2.2 percent in September from 2.0 percent in August; crude materials, inedible except fuels, 15.7 percent from 10.8 percent; mineral fuels, lubricants and related materials, 3.0 percent from -7.3 percent; and chemicals, including animal and vegetable oils and fats, 6.5 percent from 5.4 percent. However, annual inflation rates for food and machinery and transport equipment correspondingly slowed down to 2.8 percent and 0.1 percent from 3.7 percent and 0.2 percent, respectively. Movements in the inflation rate of manufactured goods classified chiefly by materials and miscellaneous manufactured articles were still at their last month's respective rates of 5.0 percent and 0.9 percent.
  

• Inflation rate in Luzon accelerated to 2.7 percent in September from -0.2 percent in August. This was brought about by the higher annual rates noted in the prices of crude materials, inedible except fuels (16.4% from 11.4%); mineral fuels, lubricants and related materials (3.6% from -7.7%); chemicals, including animal and vegetable oils and fats (6.8% from 5.6%); and miscellaneous manufactured articles (0.8% from 0.6%). On the other hand, slower annual growth rates were observed correspondingly in the prices of food items and manufactured goods classified chiefly by materials at 1.0 percent and 4.5 percent from their last month's respective rates of 1.7 percent and 4.6 percent. Inflation for beverages and tobacco and machinery and transport equipment remained at their corresponding August rates of 1.6 percent and -0.4 percent.
  

• Meanwhile, inflation rate in Visayas slowed to 5.8 percent in September from 6.5 percent in August due to the deceleration in the annual inflation rates of the following commodity groups: food items,10.1 percent from 14.7 percent; beverages and tobacco, 4.0 percent from 4.1 percent; and machinery and transport equipment, 1.6 percent from 2.0 percent. A 0.6 percent drop in the inflation for miscellaneous manufactured articles also contributed to the slowdown. Faster annual price adjustments were however seen in the following commodities: crude materials, inedible except fuels, 15.2 percent from 11.3 percent; mineral fuels, lubricants and related materials, 2.0 percent from -3.2 percent; chemicals, including animal and vegetable oils and fats, 5.5 percent from 4.0 percent; and manufactured goods classified chiefly by materials, 4.0 percent from 4.1 percent.
  

• Annual inflation rate in Mindanao picked up to 4.5 percent in September from 3.9 percent in August. The year-on-year price increase was registered higher in food items at 6.8 percent in September from 5.8 percent in August; beverages and tobacco, 3.8 percent from 3.0 percent; crude materials, inedible except fuels, 3.5 percent from -0.2 percent; chemicals, including animal and vegetable oils and fats, 5.1 percent from 4.5 percent; and manufactured goods classified chiefly by materials, 9.7 percent from 8.5 percent. Meanwhile, slower annual price gains were correspondingly posted in machinery and transport equipment and miscellaneous manufactured articles at 1.8 percent and 3.5 percent from their respective last month's rates of 2.6 percent and 4.2 percent. The annual rate of change in the prices of mineral fuels, lubricants and related materials further dropped to -6.1 percent from -6.0 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, wholesale prices in the country generally went up by 0.4 percent in September from 0.2 percent in August.
  

  NOTE :

  • Increments in the prices of pork, milk and milk products, selected fruits and vegetables, chocolate products and wheat flour raised the food index in Mindanao by 0.5 percent. This was slower than the 0.8 percent growth last month. In Luzon, the group's index decreased by -0.4 percent in September from 0.2 percent in August. This was attributed to the decline in the prices of selected food items such as chicken, eggs, fish species, vegetables, refined sugar, tubers and root crops. Lower prices of some fish species, fruits, vegetables and refined sugar also pushed down the group's index in Visayas by -2.2 percent. All these factors significantly contributed to the 0.5 percent decrease in the national food index.
    

  • The 0.8 percent rise in the beverages and tobacco index in Mindanao was brought about by the price add-ons in cigarette products in the area. Prices of beverages and tobacco in Luzon and Visayas generally remained stable as their group's index posted a zero growth. This caused the national index to move up at a slower rate of 0.1 percent from 0.3 percent.
    

  • Upward movements in the prices of copra in Luzon and Visayas along with the additions in the prices of bamboo in Mindanao pushed up the index for crude materials, inedible except fuels in the four areas: Philippines, 3.2 percent from -3.3 percent; Luzon, 3.1 percent from -3.8 percent; Visayas and Mindanao, 3.4 percent and 4.7 percent, respectively from zero growth.
    

  • Higher prices of crude petroleum oil, petroleum products, gasoline, kerosene and LPG were noticed in Luzon. Thus, the index for mineral fuels, lubricants and related materials in the area and in the Philippines rose to 2.3 percent and 2.0 percent, respectively. Similarly, price hikes of selected petroleum products in Visayas effected a 0.5 percent uptick in its group's index. Meanwhile, the groupÒ³ index in Mindanao had a zero growth in September from 0.1 percent in August.
    

  • The index for chemicals, including animal and vegetable oils and fats went up by 0.9 percent in Luzon as prices of coconut oil, fertilizer, paints, vitamins and selected antibiotics were higher in September. Upward adjustments in the prices of these items along with the price gains in other pharmaceutical products and laundry soap correspondingly raised the group's index in Visayas and Mindanao by 0.6 percent and 1.2 percent. Price add-ons on selected insecticides were also observed in the two areas. The national index thus climbed by 0.9 percent from -0.4 percent.
    

  • Prices of rubber tire, plywood, cement, concrete products such as hollow blocks, steel bars, flat bars, G.I. sheets and selected paper products in Luzon and Mindanao were up during the month. These factors contributed to the growth in the index for manufactured goods classified chiefly by materials at 0.1 percent in Luzon, 1.0 percent in Mindanao, and 0.2 percent in the Philippines. Monthly inflation of manufactured goods classified chiefly by materials in Visayas was still at 0.1 percent.
    

  • Reductions in the prices on selected electrical appliances, electric bulbs and insulated electrical wires noted in Mindanao brought down its index in machinery and equipment by -0.6 percent and in the Philippines, -0.1 percent. Prices of machinery and transport equipment in Luzon and Visayas however had zero growth during the month.
    

  • The miscellaneous manufactured articles index in Luzon rose by 0.1 percent as prices of photofilms were up during the month. On the contrary, lower prices of PVC pipes, selected undergarments, ready- made apparels and school supplies pulled down the group's index in Mindanao by -0.6 percent. Prices of miscellaneous manufactured articles in Visayas and in the Philippines remained stable as their group indices have zero growth rates.
    
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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: January 10, 2008