August 2009

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

p - pleminary
r - revised

Year-on-Year

• The annual rate of price change in the General Wholesale Price Index (GWPI) at the national level was still negative at -8.7 percent in August from -11.2 percent in July. Downward annual price movement was observed in the index of crude materials, inedible except fuels at -21.3 percent from -32.5 percent; mineral fuels, lubricants and related materials, -30.6 percent from -36.6 percent; and machinery and transport equipment, -0.6 percent from -0.5 percent. Moreover, slower annual price increments were noticed in the indexes of the following commodity groups: food, 0.2 percent from 0.8 percent; beverages and tobacco, 1.5 percent from 2.0 percent; manufactured goods classified chiefly by materials, 0.9 percent from 1.4 percent; and miscellaneous manufactured articles, 2.1 percent from 2.3 percent. A higher annual rate of price increase was however posted in the index of chemicals, including animal and vegetable oils and fats at 2.4 percent from -1.2 percent last month.
  

• The annual adjustment in wholesale prices of commodities in Luzon also dropped to -9.8 percent in August from -12.6 percent in July as annual price declines were still recorded correspondingly in the indexes of crude materials, inedible except fuels and mineral fuels, lubricants and related materials at -22.5 percent and -32.2 percent from their last month's rates of -34.8 percent and -38.3 percent, respectively. Slower annual price gain was also posted in the food index at 1.3 percent from 2.2 percent; beverages and tobacco, 3.2 percent from 3.8 percent; and manufactured goods classified chiefly by materials, 1.4 percent from 2.0 percent. On the other hand, the annual growth rate for chemicals, including animal and vegetable oils and fats index picked up to 2.8 percent from -1.7 percent. For three consecutive months, the indexes for machinery and transport equipment and miscellaneous manufactured articles retained their corresponding previous month's annual rates of -1.4 percent and 2.1 percent.
  

• Similarly, annual movement of the GWPI in Visayas was registered at -7.9 percent in August from -10.2 percent in July. All the commodity groups posted negative annual rates in August except for miscellaneous manufactured articles index which had a positive rate of 2.0 percent from 3.7 percent last month. The annual rate of price adjustment in the beverages and tobacco index declined to -5.8 percent from -3.5 percent; chemicals, including animal and vegetable oils and fats, -2.5 percent from -1.4 percent; food, -4.7 percent from -6.8 percent; crude materials, inedible except fuels, -20.2 percent from -23.3 percent; mineral fuels, lubricants and related materials, -26.0 percent from -32.9 percent; and manufactured goods classified chiefly by materials, -4.6 percent from -6.1 percent. The annual rate of machinery and transport equipment index remained at -0.6 percent.
  

• A slower annual price hike in the wholesale prices of commodities was noted in Mindanao at 0.6 percent in August from 0.9 percent in July. This can be attributed to the negative annual rates in the corresponding indexes of food and beverages and tobacco at -2.8 percent and -2.7 percent from -1.8 percent and -3.9 percent, respectively. In addition, annual price gain in the manufactured goods classified chiefly by materials index eased to 2.5 percent from 3.3 percent and machinery and transport equipment index, 5.3 percent from 5.6 percent. However, higher annual rates were posted in the indexes of the following commodity groups: crude materials, inedible except fuels, 5.8 percent from 5.3 percent; mineral fuels, lubricants and related materials, 0.6 percent from zero growth; chemicals, including animal and vegetable oils and fats, 3.7 percent from 3.0 percent; and miscellaneous manufactured articles, 3.0 percent from 2.9 percent.
  

• By Commodity Group, Month-on-Month

  The monthly growth rate of the GWPI at the national level picked up to 0.8 percent in August from -0.7 percent in July. During the month, an upward price movement was noted in the food index at 0.1 percent from -1.2 percent; crude materials, inedible except fuels, 2.7 percent from -3.1 percent; mineral fuels, lubricants and related materials, 3.1 percent from -0.7 percent; and chemicals, including animal and vegetable oils and fats, 0.8 percent from -0.8 percent. On the other hand, reductions were recorded in the prices of beverages and tobacco index at -0.2 percent from -0.1 percent; manufactured goods classified chiefly by materials and machinery and transport equipment at -0.1 percent from 0.1 percent and zero growth, respectively. Prices for miscellaneous manufactured articles remained stable as its group's index posted a zero growth in August from -0.1 percent in July.
  

  NOTE :

  • The index for mineral fuels, lubricants and related materials in the Philippines accelerated to 3.1 percent in August from -0.7 percent in July. This was effected by the 3.2 percent increase in the prices of crude petroleum oil and petroleum products in Luzon. With the price increments of these same items in Visayas, the group's index in the area jumped by 4.2 percent. Meanwhile, lower prices of LPG in Mindanao pulled down the group's index in the area by -0.1 percent.
    

  • Add-ons in the prices of copra and abaca in Luzon resulted to a 3.2 percent growth in the index of crude materials, inedible except fuels in August from -3.2 percent in July. The group's index in Mindanao also climbed 0.5 percent from zero growth as prices of charcoal were higher during the month. However, a decrease in the price of copra in Visayas effected a negative rate of 0.4 percent in its group's index. The national index moved up by 2.7 percent from -3.1 percent last month.
    

  • A 0.9 percent increment in the index of chemicals, including animal and vegetable oils in Luzon was due to the price increments in coconut oil, selected vitamins and some soap and other washing compounds in the area. Higher prices of fertilizer and selected pharmaceutical products also pushed up the group's index in Mindanao by 0.7 percent. Thus, the group's index at the national level went up by 0.8 percent. On the other hand, reductions in the prices of selected chemical products reflected a 0.1 percent decline in the group's index in Visayas.
    

  • The food index in the Philippines advanced to 0.1 percent in August from a negative rate of 1.2 percent in July. This can be attributed to the 0.5 percent increase in the group's index in Visayas as prices of selected food items like fish, fruits, vegetables and sugar were up during the period. On the other hand, downward adjustments in the prices of selected fish species, rice, fruits and vegetables along with lower prices of some poultry feeds effected a 0.4 percent drop in the group's index in Mindanao. Prices of food items in Luzon remained stable as its group's index registered a zero growth during the month.
    

  • A 0.1 percent increase was seen in the index for miscellaneous manufactured articles in Mindanao as higher prices of selected photographic instruments, plumbing fixtures and some miscellaneous manufactures were registered during the month. Meanwhile, prices of miscellaneous manufactured articles in Luzon and Visayas generally remained stable as their group's index had a zero growth.
    

  • Prices of selected paper products, flat bars and G.I. sheets went up in Luzon. Thus, the manufactured goods classified chiefly by materials index in the area gained by 0.1 percent. Meanwhile, the group's index in Mindanao further dropped to -0.5 percent from -0.2 percent as prices of textile yarn, cyclone wire and selected construction materials were lower in the area during the month. Similarly, price decreases on selected travelling bags and some construction materials were noticed in Visayas thereby causing a 0.2 percent decline in its group's index in the area. The group's index in the Philippines also recorded a negative rate of 0.1 percent.
    

  • A 0.2 percent drop was observed in the index of machinery and transport equipment in Mindanao mainly due to lower prices of selected electrical wires. Prices of machinery and transport equipment in Luzon and Visayas generally remained stable as no movement was noted in their indexes. At the national level, the group's index moved down at -0.1 percent.
    

  • The monthly price change in the index for beverages and tobacco in Visayas at -2.4 percent was brought about by the downward adjustments in the prices of selected softdrinks in the area. Moreover, reductions in the prices of selected liquors in Luzon pulled down the group's index by -0.2 percent. On the other hand, an increase of 1.3 percent in the group's index in Mindanao was caused by the general upward movements in the prices of cigarettes in the area. The group's national index continued to post a negative rate of 0.2 percent.
    
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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: November 21, 2009