October 2007

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

p - pleminary
r - revised

Year-on-Year

• The year-on-year inflation rate of the General Wholesale Price Index (GWPI) rose to 5.1 percent in October from 3.2 percent in September. This can be attributed to the higher annual rates seen in the prices of food items (3.5% from 2.8%), crude materials, inedible except fuels (18.6% from 15.7%), mineral fuels, lubricants and related materials (10.4% from 3.0%), and chemicals, including animal and vegetable oils and fats (7.2% from 6.6%). However, inflation rate for beverages and tobacco slowed down to 2.0 percent from 2.2 percent while inflation for the rest of the commodity groups remained at their last month's positive rates.
  

• Inflation rate in Luzon increased by 2.4 percentage points to 5.1 percent in October from 2.7 percent in September. Higher inflation rates were posted in the prices of the following commodity groups: food items, 2.4 percent in October from 1.0 percent in September; crude materials, inedible except fuels, 19.6 percent from 16.4 percent; mineral fuels, lubricants and related materials, 11.4 percent from 3.6 percent; chemicals, including animal and vegetable oils and fats, 7.7 percent from 6.8 percent; and manufactured goods classified chiefly by materials, 4.6 percent from 4.5 percent. On the other hand, slower annual growth rate was noted in the prices of beverages and tobacco at 1.5 percent from 1.6 percent while machinery and transport equipment and miscellaneous manufactured articles retained their corresponding September rates of -0.4 percent and 0.8 percent.
  

• Similarly, inflation rate in Visayas went up to 5.9 percent in October from 5.8 percent in September. Annual inflation rates were higher in mineral fuels, lubricants and related materials at 9.8 percent in October from 2.0 percent in September; machinery and transport equipment, 1.7 percent from 1.6 percent; and miscellaneous manufactured articles, 0.2 percent from -0.6 percent. Meanwhile, slower annual movements in the prices of the following commodity groups were registered during the month: food items, 7.5 percent from 10.1 percent; beverages and tobacco, 3.9 percent from 4.0 percent; chemicals, including animal and vegetable oils and fats, 4.8 percent from 5.5 percent; and manufactured goods classified chiefly by materials, 3.8 percent from 4.2 percent. Inflation for crude materials, inedible except fuels remained at 15.2 percent.
  

• Annual inflation rate in Mindanao grew by 4.5 percent in October, the same rate registered in September. The year-on-year inflation rates of food items and machinery and transport equipment were correspondingly faster at 7.6 percent and 2.0 percent from 6.8 percent and 1.8 percent, respectively. On the other hand, slower annual price increases were noted in beverages and tobacco at 3.4 percent from 3.8 percent; chemicals, including animal and vegetable oils and fats, 4.9 percent from 5.7 percent; manufactured goods classified chiefly by materials, 8.2 percent from 9.7 percent; and miscellaneous manufactured articles, 3.0 percent from 3.5 percent. Inflation for crude materials, inedible except fuels was at its previous month's rate of 3.5 percent while downward annual price adjustments were noted in mineral fuels, lubricants and related materials at -5.6 percent from -6.1 percent.
  

• By Commodity Group, Month-on-Month

  The overall wholesale prices of commodities continued to move upward at 1.1 percent in October compared to 0.4 percent last month.
  

  NOTE :

  • Prices of selected food items such as fish, fruits, vegetables, tubers and root crops, sugar and cereal preparations such as noodles (sotanghon) in Luzon and Visayas went up during the month. Thus, the food indexes in the two areas accelerated by 2.3 percent and 0.7 percent, respectively. Meanwhile, the group's index in Mindanao picked up by 0.2 percent due to the increments in the prices of the same food items along with the price add-ons in desiccated coconut. This was however slower than its previous month's rate of 0.5 percent. At the national level, the group's index increased by 1.8 percent from -0.5 percent.
    

  • Prices of beverages and tobacco nationwide generally remained stable during the month as their group's index posted zero growth.
    

  • Upward adjustments in the prices of copra and abaca in Luzon raised the index for crude materials, inedible except fuels in the area by 5.1 percent and in the Philippines by 4.4 percent. Meanwhile, the group's index in Visayas and Mindanao had a zero growth during the period.
    

  • The index for mineral fuels, lubricants and related materials in Luzon and in the Philippines gained by 1.5 percent, slower than their respective previous month's growth rates of 2.3 percent and 2.0 percent. Higher prices of crude petroleum oil, gasoline, kerosene and LPG were observed during the period. Similarly, price hikes of selected petroleum products in Visayas and Mindanao correspondingly effected a 3.5 percent and 0.4 percent uptick in their group's indexes.
    

  • The 1.2 percent growth in the index for chemicals, including animal and vegetable oils and fats in Luzon was brought about by the price additions in coconut oil, laundry soap and other pharmaceutical products in the area. In Visayas, the increase was pegged at 0.1 percent due to higher prices of fertilizer and vulcanizing cement in the area. This was however slower than its last month's rate of 0.6 percent. Movements in the prices of chemicals, including animal and vegetable oils and fats in Mindanao generally remained stable during the month. These mixed price trends resulted to a 0.9 percent growth in the national index, the same rate recorded in September.
    

  • Price hikes in selected paper products caused the index for manufactured goods classified chiefly by materials in Luzon to grow by 0.3 percent. Likewise, the upward adjustments in the prices of rubber tires, traveling bags, and deformed bars raised its group's index in Visayas by 0.3 percent. Meanwhile, no price movement was observed in Mindanao as a zero growth was noticed in its monthly rate of change. In the Philippines, the group's index moved up at 0.3 percent from 0.2 percent.
    

  • The index for machinery and transport equipment slightly moved up by 0.1 percent in Visayas as prices of some electrical lamps and fixtures and electrical appliances such as air conditioners and electric fans went up during the month. On the other hand, reductions in the prices of selected electrical appliances in Mindanao brought down its index in machinery and equipment by -0.1 percent. Prices of machinery and transport equipment in Luzon however had a zero growth during the month. At the national level, the group's index climbed by 0.1 percent.
    

  • Upward adjustments in the prices of camera and photofilm in Visayas raised the manufactured articles index in the area by 0.4 percent. Likewise, the group's index in Luzon grew by 0.1 percent for three consecutive months due to the continued increments in the prices of selected office supplies. On the contrary, lower prices of selected wristwatches pulled down the group's index in Mindanao by -0.1 percent. The overall index rose by 0.1 percent from zero growth.
    
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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