October 2009

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

p - pleminary
r - revised

Year-on-Year

• On an annual basis, the movement in the country's General Wholesale Price Index (GWPI) was still negative at -1.6 percent in October from -6.4 percent in September. Downward annual price change was observed in the index of beverages and tobacco at -0.6 percent from -0.5 percent; crude materials, inedible except fuels, -15.6 percent from -24.8 percent; mineral fuels, lubricants and related materials, -11.4 percent from -24.3 percent; and machinery and transport equipment, -0.5 percent from -0.7 percent. Moreover, the annual growth rate in the miscellaneous manufactured articles index slowed down to 0.7 percent from 1.4 percent. However, higher annual rates were correspondingly noted in the indices of food and manufactured goods classified chiefly by materials at 4.4 percent and 0.8 percent from their respective last month's rates of 1.8 percent and 0.5 percent. The chemicals, including animal and vegetable oils and fats index retained its last month's annual rate of 0.9 percent.
  

• The annual adjustment of the GWPI in Luzon was recorded at -1.8 percent in October from -7.4 percent in September. This can be attributed to the annual price declines in the corresponding indexes of crude materials, inedible except fuels and mineral fuels, lubricants and related materials at -18.1 percent and -11.9 percent from -27.0 percent and -25.8 percent, respectively. Slower annual price gains were also noticed in the indexes of beverages and tobacco and miscellaneous manufactured articles at 0.6 percent from their respective previous month's rates of 0.8 percent and 1.4 percent. On the other hand, a higher annual growth rate was seen in the index of food, 5.4 percent from 2.2 percent; chemicals, including animal and vegetable oils and fats, 1.4 percent from 1.2 percent; and manufactured goods classified chiefly by materials, 0.7 percent from 0.6 percent. For five consecutive months, the annual movement of machinery and transport equipment index remained at -1.4 percent.
  

• Similarly, the year-on-year movement of wholesale prices of commodities in Visayas was registered at -3.7 percent in October from -5.3 percent last month. A negative annual rate was noted in the food index at -1.6 percent from -1.4 percent; beverages and tobacco, -6.8 percent from -6.9 percent; mineral fuels, lubricants and related materials, -15.0 percent from -20.5 percent; chemicals, including animal and vegetable oils and fats, -2.4 percent from -2.6 percent; and machinery and transport equipment, -0.8 percent from -0.7 percent. A lower annual gain was likewise posted in the prices of miscellaneous manufactured articles at 1.1 percent from 1.6 percent. Meanwhile, the annual growth rates for the indexes of crude materials, inedible except fuels and manufactured goods classified chiefly by materials correspondingly accelerated to 0.7 percent and 0.1 percent from -15.6 percent and -2.7 percent, respectively.
  

• However, the annual rate of price changes based on the GWPI in Mindanao went up to 2.6 percent in October from 2.2 percent in September. It resulted from the increase in the annual growth rates of the food index at 3.3 percent from 1.9 percent; mineral fuels, lubricants and related materials, 2.7 percent from 2.4 percent; manufactured goods classified chiefly by materials, 1.9 percent from 1.4 percent; and machinery and transport equipment, 5.3 percent from 4.9 percent. Meanwhile, a slower annual price hike was correspondingly seen in the index of chemicals, including animal and vegetable oils and fats and miscellaneous manufactured articles at 0.6 percent and 1.3 percent from 2.4 percent and 2.1 percent, respectively. A negative annual rate of -2.3 percent was still recorded in the index of beverages and tobacco while that for crude materials, inedible except fuels was still at its previous month's rate of 5.8 percent.
  

• By Commodity Group, Month-on-Month

  The monthly growth rate of the GWPI at the national level rose to 1.0 percent in October from -0.1 percent in September as upward price movements were correspondingly registered in the indexes of food and mineral fuels, lubricants and related materials at 2.6 percent and 1.3 percent from 1.0 percent and -1.7 percent, respectively. Downward adjustments were however observed in the prices of crude materials, inedible except fuels at -1.0 percent from -3.0 percent and chemicals, including animal and vegetable oils and fats, -0.7 percent from -0.3 percent. The monthly price change in the beverages and tobacco index remained at its last month's rate of -0.1 percent while those for manufactured goods classified chiefly by materials, machinery and transport equipment and miscellaneous manufactured articles were stable as their group's index had a zero growth.
  

  NOTE :

  • The 2.6 percent increment in the food index in the Philippines was due to the corresponding increases in the group's index in Luzon and Mindanao at 3.3 percent and 1.6 percent as prices of selected food items like pork, chicken, beef, fish, sugar, fruits and vegetables were on the uptrend during the period. On the other hand, price decreases in some fish species, fruits, vegetables and chocolate products caused a drop in the group's index in Visayas by -0.8 percent. In addition, lower prices of desiccated coconut in the area contributed to the downward movement.
    

  • Higher prices of crude petroleum were noted in Luzon which resulted to a 1.3 percent growth in the mineral fuels, lubricants and related materials index in the area. Likewise, an upward adjustment in the prices of LPG raised the group's index in Visayas by 2.5 percent. Hence, the national index also accelerated to 1.0 percent. In Mindanao, no movement was posted in the prices of mineral fuels, lubricants and related materials as the index had a zero growth.
    

  • A decrease of -0.1 percent in the beverages and tobacco index in Luzon was due to the price reductions in selected cigarettes. In addition, lower prices of softdrinks pushed down the index in Mindanao by -0.8 percent. Thus, the group's national index dropped by -0.1 percent. On the contrary, in Visayas, it grew by 0.1 percent as prices of some liquors, brewery and malt products were up in October.
    

  • Lower prices of selected fertilizers were observed in Luzon, thus the index for chemicals, including animal and vegetable oils and fats in the area dropped to -1.0 percent. On the other hand, higher prices of selected bath soap and other washing and cleaning compound products in Visayas reflected a 0.7 percent increase in the group's index. Meanwhile, in Mindanao the index generally remained stable during the period. This mixed price trends resulted to a decrease in the group's index in the Philippines by -0.7 percent.
    

  • A 1.0 percent decline was noticed in the index of crude materials, inedible except fuels at the national level. Lower prices of copra in Luzon and Visayas pulled down their corresponding group's index by -1.1 percent and -1.3 percent. Reductions in the price of abaca also contributed to the decrease in the group's index in Luzon. Meanwhile, prices of crude materials, inedible except fuels in Mindanao generally remained stable as the index registered a zero growth.
    

  • The index for manufactured goods classified chiefly by materials advanced to 0.4 percent in Mindanao as higher prices of paper products were recorded during the month. On the other hand, lower prices of cement and flat bars in Luzon and downward movement in the prices of other converted paper products and selected tiles in Visayas resulted to a -0.1 percent decrease in the group's index. The monthly change at the national level was zero.
    

  • Movement in machinery and transport index in Mindanao at 0.1 percent was due to price gains in selected electrical apparatus. However, lower prices of some electrical appliances effected a -0.1 percent decrease in the group's index in Luzon. Compared to last month, no changes were seen in the prices of machinery and transport equipment in Visayas. The index in the Philippines likewise had a zero growth during the month.
    

  • The miscellaneous manufactured articles index in Luzon went down by -0.1 percent brought about by lower prices of miscellaneous manufactures. In Visayas, Mindanao and at the national level, the index generally remained stable in October.
    
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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 23, 2010