August 2010

Year-on-Year Inflation Rates, All Items
August 2009 - August 2010

p - pleminary
r - revised

Year-on-Year

• The annual growth rate based on the General Wholesale Price Index (GWPI) at the national level slowed down to 3.8 percent in August from 4.3 percent in July as a negative annual rate was still registered in miscellaneous manufactured articles index at -0.2 percent. In addition, a slower annual price increase was posted in the index of mineral fuels, lubricants and related materials at 4.0 percent in August from 9.3 percent in July. Meanwhile, a higher annual price gain was observed in the food index at 5.9 percent from 4.8 percent; beverages and tobacco, 2.8 percent from 1.9 percent; crude materials, inedible except fuels, 22.0 percent from 18.5 percent; chemicals, including animal and vegetable oils and fats, 2.7 percent from 2.4 percent; manufactured goods classified chiefly by materials, 1.3 percent from 1.1 percent; and machinery and transport equipment, 1.0 percent from 0.6 percent.
  

• Wholesale prices of commodities in Luzon also eased to 3.7 percent in August from 4.5 percent in July. For four consecutive months, the annual movement in the miscellaneous manufactured articles index remained at -0.7 percent. Moreover, a slowdown was posted in the annual price hike of mineral fuels, lubricants and related materials index at 3.7 percent from 9.2 percent. However, higher annual growth rates were noted in the indexes of the following commodity groups: food, 5.6 percent from 4.9 percent; beverages and tobacco, 3.1 percent from 2.3 percent; crude materials, inedible except fuels, 24.0 percent from 20.0 percent; chemicals, including animal and vegetable oils and fats, 3.7 percent from 3.1 percent; and manufactured goods classified chiefly by materials, 1.2 percent from 1.1 percent. The annual growth in machinery and transport equipment index was still at 0.8 percent.
  

• On the other hand, the annual price adjustment in the GWPI in Visayas climbed to 3.9 percent in August from 2.7 percent in July. This can be attributed to the annual price hike in the food index at 6.8 percent in August from 2.3 percent in July; beverages and tobacco, 2.6 percent from -0.2 percent; crude materials, inedible except fuels, 18.8 percent from 18.3 percent; manufactured goods classified chiefly by materials, 0.8 percent from -0.6 percent; machinery and transport equipment, 2.5 percent from 0.4 percent; and miscellaneous manufactured articles, 1.0 percent from zero growth. Meanwhile, a slower annual growth rate of 2.7 percent from 10.5 percent in mineral fuels, lubricants and related materials index was noticed during the period. An annual price decline of -0.7 percent was still seen in chemicals, including animal and vegetable oils and fats index.
  

• Similarly, the annual rate of price changes in the GWPI in Mindanao went up to 4.5 percent in August compared to 4.0 percent in July. A higher annual rate was observed in food index at 7.7 percent from 6.8 percent; mineral fuels, lubricants and related materials, 10.2 percent from 9.0 percent; manufactured goods classified chiefly by materials, 1.8 percent from 1.6 percent; machinery and transport equipment, 0.1 percent from -0.1 percent; and miscellaneous manufactured articles, 2.7 percent from 2.2 percent. Meanwhile, the annual price addition in beverages and tobacco index improved to 0.7 percent from 1.1 percent. Moreover, negative annual rates were still noted in crude materials, inedible except fuels index at -6.5 percent and chemicals, including animal and vegetable oils and fats at -1.3 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, wholesale prices at the national level moved up at 0.6 percent in August from -0.3 percent in July. A higher price increase was posted in the index of crude materials, inedible except fuels, 5.7 percent from 4.3 percent; food, 1.1 percent from -1.1 percent; chemicals, including animal and vegetable oils and fats, 1.1 percent from 0.5 percent; manufactured goods classified chiefly by materials, 0.2 percent from 0.1 percent; and machinery and transport equipment, 0.3 percent from 0.2 percent. From zero growth, the indexes of beverages and tobacco and miscellaneous manufactured articles picked up to 0.7 percent and 0.2 percent, respectively. The annual growth for mineral fuels, lubricants and related materials index was still negative at -0.3 percent.
  

  • The monthly price change in crude materials, inedible except fuels index in Luzon at 6.6 percent was brought about by upward adjustments in the prices of copra, gravel and sand. On the other hand, the group's index in Visayas and Mindanao remained stable during the month. At the national level, the group's index advanced to 5.7 percent.
    

  • Price hikes in selected food items like sugar, fish, some spices, fruits and vegetables resulted to a 5.0 percent growth in the food index in Visayas. Higher prices of meat, selected fish species, sugar and sugar products likewise raised the group's index in Luzon by 0.7 percent. Price increments in copra meal and desiccated coconut also contributed to the upward trend in the group's index in the area. The same food items were also priced higher in Mindanao, hence, the group's index increased by 0.5 percent. All these factors pushed up the national index by 1.1 percent.
    

  • The movement in chemicals, including animal and vegetable oils and fats index at 1.5 percent in Luzon was effected mainly by a price uptick in coconut oil. The group's index in Visayas also picked up by 0.1 percent as price add-ons on selected cleaning compounds were observed during the month. Meanwhile in Mindanao, price declines on selected fertilizers pushed down its group's index by -0.2 percent. These mixed price trends effected a 1.1 percent growth in the group's national index.
    

  • Higher prices of selected softdrinks pushed the beverages and tobacco index in Mindanao by 0.9 percent. Similarly, prices of some cigarettes were up in Luzon and Visayas that their group's index gained 0.6 percent and 0.4 percent, respectively. Upward price adjustment in selected liquor also contributed to the increase in the group's index in Luzon. Thus, the group's index in the Philippines rose 0.7 percent during the month.
    

  • The month-on-month price adjustments in the index for machinery and transport equipment at 2.1 percent in Visayas and 0.1 percent in Luzon were due to price additions in selected electrical appliances and electrical wires. Hence, the national index grew by 0.3 percent. Meanwhile no changes were seen in the prices of machinery and transport equipment in Mindanao as its index had a zero growth.
    

  • The index of miscellaneous manufactured articles in Visayas grew 1.0 percent. This was brought about by higher prices of selected office supplies. Moreover, add-ons in the prices of some sanitary fixtures and footwear in Mindanao resulted to a 0.6 percent increment in its index. On the other hand, prices of miscellaneous manufactured articles in Luzon generally remained stable. At the national level, the group's index moved up to 0.2 percent during the period.
    

  • The manufactured goods classified chiefly by materials index in Visayas grew by 1.2 percent in August as prices of selected rubber tires were on the uptrend. In addition, the movement in the group's index in Luzon at 0.1 percent was attributed to upward adjustments in the prices of plywood, some concrete products and wood products. This was however slower than the 0.2 percent growth last month. On the other hand, lower prices of selected paper products and cement in Mindanao pushed down its group's index by -0.3 percent. The monthly price change at the national level inched up to 0.2 percent.
    

  • A -3.2 percent drop in the mineral fuels, lubricants and related materials index in Visayas and -0.2 percent in Luzon was a result of price reductions on selected petroleum products. Hence, the movement in the group's national index also decreased by -0.3 percent. On the contrary, price addition on LPG products in Mindanao raised the group's index in Mindanao by 1.0 percent.
    

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    NOTE :

    Revisions of the monthly series from January 2009 to March 2010 were made to incorporate the machinery and equipment rental rates based on the latest updated data from the official source.