July and August 2004

*r-revised

• Year-on-Year

  Based on the General Wholesale Price Index (GWPI), year-on-year inflation rate at the national level went up by 0.3 percentage point to 9.8 percent in August from 9.5 percent in July.

  Inflation rate for mineral fuels, lubricants and related materials accelerated to 28.0 percent in August from 26.5 percent in July; chemicals, including animal and vegetable oils and fats, 9.3 percent from 8.6 percent; manufactured goods classified chiefly by materials, 5.9 percent from 5.1 percent; and miscellaneous manufactured articles, 2.6 percent from 1.7 percent. On the other hand, slowdowns were registered in the inflation of food, 8.6 percent from 9.2 percent; crude materials, inedible except fuels, 27.1 percent from 28.3 percent; and machinery and transport equipment, 2.6 percent from 2.8 percent. Inflation rate for beverages and tobacco remained at 3.8 percent.

  • Similarly, inflation rate in Luzon jumped by 0.5 percentage point to 10.0 percent in August from 9.5 percent in July. Inflation of mineral fuels, lubricants and related materials grew to 29.7 percent from 27.4 percent; chemicals, including animal and vegetable oils and fats, 10.0 percent from 9.0 percent; manufactured goods classified chiefly by materials, 5.4 percent from 4.5 percent; and miscellaneous manufactured articles, 1.5 percent from 0.6 percent. Meanwhile, annual movements in the prices of food items decelerated to 8.3 percent from 8.9 percent; beverages and tobacco, 3.3 percent from 3.4 percent; crude materials, inedible except fuels, 28.9 percent from 30.4 percent; and machinery and transport equipment, 2.3 percent from 2.6 percent.

  • In Visayas, inflation rate advanced to 4.8 percent in August from 4.4 percent in July. The annual rate of increases in the prices of food items rose to 4.3 percent from 4.0 percent; beverages and tobacco, 2.7 percent from 2.6 percent; and mineral fuels, lubricants and related materials, 22.5 percent from 20.3 percent. The rest of the commodity groups retained their last month's rate.

  • Inflation rate in Mindanao slowed down to 12.4 percent in August from 13.9 percent in July. This can be attributed to the slower rates posted in the following commodity groups: food, 14.9 percent in August from 17.2 percent in July; mineral fuels, lubricants and related materials, 11.3 percent from 20.1 percent; chemicals, including animal and vegetable oils and fats, 9.2 percent from 10.3 percent; and machinery and transport equipment, 7.4 percent from 8.1 percent. On the contrary, inflation rate for crude materials, inedible except fuels increased to 32.8 percent from 32.2 percent; manufactured goods classified chiefly by materials, 12.9 percent from 12.5 percent; and miscellaneous manufactured articles, 15.0 percent from 12.4 percent. Inflation of beverages and tobacco remained at 8.0 percent.

• By Commodity Group, Month-on- Month

  The month-on-month inflation picked up by 0.3 percentage point to 0.9 percent in August from 0.6 percent in July.

  • The food index in Visayas increased by 0.2 percent due to the add-ons in the prices of meat, milk, fish and selected fruits. On the other hand, lower prices of hogs, fish, eggs and vegetables pulled down the group's index in Luzon and Mindanao by -0.4 percent and -2.2 percent, respectively. The national index also declined by 0.5 percent.

  • Uptick in the prices of selected liquors raised the index for beverages and tobacco in the Philippines by 0.3 percent; Luzon, 0.4 percent; and Visayas, 0.1 percent. Meanwhile, prices of beverages and tobacco in Mindanao generally remained stable during the month as its index still posted a zero growth.

  • Increment in the price of bamboo caused the index of crude materials, inedible except fuels in Mindanao to grow by 0.4 percent. Lower prices of copra however primarily contributed to the 1.0 percent drop in the group's index for Luzon and in the Philippines by 0.9 percent.

  • Prices of petroleum products were up in Luzon and Visayas. Similarly, higher price of LPG in Mindanao was also noted. Thus, the index for mineral fuels, lubricants and related materials accelerated in the four areas: Philippines, 4.8 percent from 2.5 percent; Luzon, 5.3 percent from 2.3 percent; Visayas, 1.9 percent from 0.1 percent; and Mindanao, 0.4 percent from 8.8 percent.

  • Chemicals, including animal and vegetable oils and fats index for the four areas registered zero growth this month.

  • Higher prices of lumber, plywood and fabricated wire products resulted to the 0.8 and 0.5 percent growth in the index of manufactured goods classified chiefly by materials in Luzon and Mindanao, respectively. The national index also moved up by 0.7 percent. Generally, prices of manufactured goods classified chiefly by materials remained stable in Visayas.

  • Upward adjustments in the prices of battery and insulated electrical wire raised machinery and transport equipment index in Luzon by 0.7 percent. Likewise, the group's index in Mindanao gained 0.1 percent due to higher prices of radio set and electrical wire. However, prices of machinery and transport equipment in Visayas generally remained stable as it still posted a zero growth for four consecutive months. At the national level, the group's index increased by 0.6 percent.

  • Price hikes in sanitary fixtures pushed up the miscellaneous manufactured articles index in the Philippines and Luzon by 0.8 percent and in Mindanao, 0.7 percent. Meanwhile, the group's index in Visayas recorded a zero growth.

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  Source: National Statistics Office
  Manila, Philippines

  Page last revised: December 7, 2004