September 2009

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

p - pleminary
r - revised

Year-on-Year

• The year-on-year movement of the General Wholesale Price Index (GWPI) in the Philippines was still negative at -6.4 percent in September from -8.4 percent in August. This can be attributed to the reductions in the annual rates in the indices of the following commodity groups: beverages and tobacco, -0.5 percent from 1.5 percent; crude materials, inedible except fuels, -24.8 percent from -21.3 percent; mineral fuels, lubricants and related materials, -24.3 percent from -29.4 percent; and machinery and transport equipment, -0.7 percent from -0.6 percent. Moreover, slower annual price adjustments were recorded in the indices of chemicals, including animal and vegetable oils and fats at 0.9 percent in September from 2.4 percent in August; manufactured goods classified chiefly by materials, 0.5 percent from 0.9 percent; and miscellaneous manufactured articles, 1.4 percent from 2.1 percent. However, the annual growth rate of 1.8 percent in the food index was higher than the 0.2 percent noted last month.
  

• The annual rate of the GWPI in Luzon was registered at -7.4 percent in September from -9.4 percent in August. Declines were seen in the corresponding annual price movement in the indices of crude materials, inedible except fuels and mineral fuels, lubricants and related materials at -27.0 percent and -25.8 percent from -22.5 percent and -30.9 percent, respectively. Slower annual price increments were also observed in beverages and tobacco index at 0.8 percent from 3.2 percent; chemicals, including animal and vegetable oils and fats, 1.2 percent from 2.8 percent; manufactured goods classified chiefly by materials, 0.6 percent from 1.4 percent; and miscellaneous manufactured articles, 1.4 percent from 2.1 percent. The index of machinery and transport equipment retained its previous month's annual rate of -1.4 percent.
  

• Likewise, the annual price change of the GWPI in Visayas continued to be negative at -5.3 percent in September from -7.9 percent in August. Except for miscellaneous manufactured articles index with a positive rate of 1.6 percent, all the commodity groups had negative annual rates during the month. The annual rate of price movement in the food index was -1.4 percent from -4.7 percent; beverages and tobacco, -6.9 percent from -5.8 percent; crude materials, inedible except fuels, -15.6 percent from -20.2 percent; mineral fuels, lubricants and related materials, -20.5 percent from -26.0 percent; chemicals, including animal and vegetable oils and fats, -2.6 percent from -2.5 percent; manufactured goods classified chiefly by materials, -2.7 percent from -4.6 percent; and machinery and transport equipment, -0.7 percent from -0.6 percent.
  

• However, a higher annual price gain in the wholesale prices of commodities was observed in Mindanao at 2.2 percent in September from 0.6 percent in August. It resulted from the price increments in the corresponding annual growth rate of the indexes of food and mineral fuels, lubricants and related materials at 1.9 percent and 2.4 percent from -2.8 percent and 0.6 percent, respectively. Meanwhile, slower annual price adjustments were noticed in the indexes of the following commodity groups: chemicals, including animal and vegetable oils and fats, 2.4 percent from 3.7 percent; manufactured goods classified chiefly by materials, 1.4 percent from 2.5 percent; machinery and transport equipment, 4.9 percent from 5.3 percent; and miscellaneous manufactured articles, 2.1 percent from 3.0 percent. A negative annual rate of -2.6 percent was still seen in the index of beverages and tobacco while that for crude materials, inedible except fuels index remained at its previous month's rate of 5.8 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, the general level of wholesale prices of commodities in the Philippines declined by -0.1 percent in September from 1.1 percent in August. Price reductions were noticed in the beverages and tobacco index at -0.1 percent from -0.2 percent; crude materials, inedible except fuels, -3.0 percent from 2.7 percent; mineral fuels, lubricants and related materials, -1.7 percent from 4.7 percent; chemicals, including animal and vegetable oils and fats, -0.3 percent from 0.8 percent; and miscellaneous manufactured articles, -0.1 percent from zero growth. A higher monthly rate of price addition was however posted in the corresponding indexes of food and manufactured goods classified chiefly by materials at 1.0 percent and 0.2 percent from their respective last month's rates of 0.1 percent and -0.1 percent. Prices of machinery and transport equipment remained stable as its group's index had a zero growth in September from -0.1 percent in August.
  

  NOTE :

  • The index of crude materials, inedible except fuels at the national level dropped to -3.0 percent in September from 2.7 percent in August. This was mainly due to the 3.5 percent decline in the group's index in Luzon brought about by lower prices of copra in the area. Meanwhile, prices of crude materials, inedible except fuels in Visayas and Mindanao generally remained stable as their group's index registered a zero growth during the month.
    

  • Roll backs in the prices of petroleum products pushed down the index of mineral fuels, lubricants and related materials in Luzon by -1.9 percent from 5.1 percent; Visayas, -0.8 percent from 4.2 percent; and in the Philippines, -1.7 percent from 4.7 percent. Meanwhile, an upward movement in the prices of LPG in Mindanao raised its group's index by 0.6 percent.
    

  • The monthly price change in the index of chemicals, including animal and vegetable oils and fats in Luzon at -0.3 percent was caused by the reduction in the price of coconut oil in the area. Likewise, the group's index in Mindanao had a negative rate of 0.3 percent effected by the downward adjustments in the prices of selected fertilizer during the period. On the other hand, no movement was seen in the prices of many items under this group as its index in Visayas had a zero growth. The group's index in the Philippines moved at -0.3 percent.
    

  • A decline in the prices of selected softdrinks in Visayas resulted to a 1.1 percent drop in the index of beverages and tobacco in the area. The group's index in Mindanao went up to 0.1 percent as higher prices of some brewery and malt products were observed in September. Meanwhile, prices of beverages and tobacco in Luzon generally remained stable as its index registered a zero growth. This mixed price trends pulled down the group's index at the national level by -0.1 percent.
    

  • The miscellaneous manufactured articles index in the Philippines went down by -0.1 percent. This was brought about by the -0.9 percent decrease in the group's index in Mindanao as lower prices of selected ready made apparels, office supplies and other miscellaneous manufactures were noticed during the month. However, a 0.1 percent increment was posted in the group's index in Luzon and Visayas which resulted from the price add-ons on selected school supplies and fabricated plastic products.
    

  • A decrease in the prices of selected electrical appliances and insulated electrical wires effected a negative rate of 0.1 percent in the machinery and transport equipment index in Mindanao. Meanwhile, prices of machinery and transport equipment in Luzon and Visayas generally remained stable as their indices had a zero growth in September.
    

  • The group's index for manufactured goods classified chiefly by materials advanced by 0.8 percent in Mindanao as higher prices of lumber, selected concrete products and paper products were observed during the period. On the other hand, no changes were noted in the prices of manufactured goods classified chiefly by materials in Luzon and Visayas as their group's index registered a zero growth. Thus, the group's national index moved up by 0.2 percent compared to last month's -0.1 percent.
    

  • Movement in the food index in Luzon at 1.4 percent was due to price gains on selected food items such as pork, rice, instant noodles, instant coffee, fruits and vegetables in the area. Likewise, a 0.3 percent increment in the group's index in Visayas was brought about by the upward adjustments in the prices of selected fish species, fruits, vegetables and rootcrops. This was however slower than the 0.5 percent growth last month. Meanwhile, lower prices of rice, some fruits and vegetables and eggs pulled down the group's index in Mindanao by 0.8 percent. The downward price movement on poultry feeds also contributed to the decline. At the national level, the group's index climbed to 1.0 percent from 0.1 percent last month.
    
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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: December 4, 2009