December 2011

Year-on-Year Inflation Rates, All Items
December 2010 - December 2011

p - preliminary
r - revised

Year-on-Year

The annual growth of the General Wholesale Price Index (GWPI) at the national level eased to 5.9 percent in December from 7.4 percent in November. A decline was observed in crude materials, inedible except fuels at -5.2 percent in December from 1.2 percent last month. In addition, slower gains were posted in the indices of the following commodity groups: food, 2.5 percent from 3.9 percent; beverages and tobacco, 5.7 percent from 5.8 percent; mineral fuels, lubricants and related materials, 17.8 percent from 21.9 percent; chemicals, including animal and vegetable oils and fats, 0.9 percent from 1.9 percent; and machinery and transport equipment, 1.2 percent from 1.6 percent. Meanwhile, the indices of manufactured goods classified chiefly by materials and miscellaneous manufactured articles correspondingly picked up to 4.4 percent and 2.5 percent from 3.9 percent and 2.3 percent, respectively.
 

• The country's annual average growth rate of the GWPI for the year 2011 was 8.7 percent compared to 5.9 percent a year ago. Except for the annual average rate of the food index which was still at 4.5 percent in 2011, the annual average changes in the indices of all commodity groups went up during the year. The annual average growth in beverages and tobacco index accelerated to 6.2 percent in 2011 from 2.1 percent in 2010; crude materials, inedible except fuels, 31.3 percent from 20.2 percent; mineral fuels, lubricants and related materials, 21.8 percent from 17.5 percent; chemicals, including animal and vegetable oils and fats, 6.6 percent from 2.6 percent; manufactured goods classified chiefly by materials, 3.0 percent from 0.6 percent; machinery and transport equipment, 1.6 percent from 0.7 percent; and miscellaneous manufactured articles, 3.8 percent from 0.3 percent.
   

• In December, the annual increments in the wholesale prices of commodities in Luzon moved up at a slower rate of 6.7 percent in December from 8.4 percent in November. The annual rate of crude materials, inedible except fuels index dropped to -3.9 percent in December from 2.1 percent in November. Moreover, a slowdown was recorded in the food index at 3.3 percent in December from 4.8 percent in November; mineral fuels, lubricants and related materials, 19.3 percent from 23.8 percent; and machinery and transport equipment, 1.1 percent from 1.2 percent. However, the annual change in the manufactured goods classified chiefly by materials index grew by 4.5 percent from 3.9 percent. While the annual additions in the indices of beverages and tobacco and miscellaneous manufactured articles remained at their last month's rates, movement in the index of chemicals, including animal and vegetable oils and fats was zero from 1.3 percent.
   

• Uptick in the annual average growth rate of the GWPI in Luzon was at 9.6 percent in 2011 from 6.3 percent last year as the average annual rates in the indices of all commodity groups increased during the year. The annual average increment for the food index rose 4.9 percent from 4.2 percent; beverages and tobacco, 6.7 percent from 2.7 percent; crude materials, inedible except fuels, 33.1 percent from 21.8 percent; mineral fuels, lubricants and related materials, 23.2 percent from 18.4 percent; chemicals, including animal and vegetable oils and fats, 7.8 percent from 3.4 percent; manufactured goods classified chiefly by materials, 3.0 percent from 0.6 percent; machinery and transport equipment, 1.0 percent from 0.7 percent; and miscellaneous manufactured articles, 3.9 percent from zero growth.

• Likewise, the annual gain of the GWPI in Visayas decelerated to 1.3 percent in December from 2.7 percent in November. This can be attributed to the decreases in the heavily weighted food index at -1.9 percent from -1.2 percent and crude materials, inedible except fuels index at -18.5 percent from -7.4 percent. In addition, a slower annual rate was noted in beverages and tobacco index at 4.8 percent from 5.2 percent; mineral fuels, lubricants and related materials, 8.2 percent from 12.1 percent; and machinery and transport equipment, 1.1 percent from 3.4 percent. On the other hand, the annual adjustment in the index of chemicals, including animal and vegetable oils and fats advanced to 4.5 percent from 3.5 percent; manufactured goods classified chiefly by materials, 3.8 percent from 3.7 percent; and miscellaneous manufactured articles, 0.9 percent from 0.8 percent.

• Compared to last year, the annual average growth rate of the GWPI in Visayas jumped to 6.4 percent in 2010 from 4.0 percent. Increases were seen in the annual average growth rates of the following indices: beverages and tobacco (6.6% from -1.0%); crude materials, inedible except fuels (26.8% from 17.4%); mineral fuels, lubricants and related materials (18.1% from 11.9%); chemicals, including animal and vegetable oils and fats (1.4% from -0.1%); manufactured goods classified chiefly by materials (3.1% from 0.5%); machinery and transport equipment (5.0% from 0.9%); and miscellaneous manufactured articles (1.9% from 0.4%). However, the annual average rate for food index slowed down to 3.6 percent from 4.8 percent last year.

• In Mindanao, the annual movement of the GWPI also improved at 2.9 percent in December from 3.1 percent in November. This was effected by the slower annual hikes in the indices of the following: food (1.4% from 2.3%); chemicals, including animal and vegetable oils and fats (4.2% from 4.5%); and machinery and transport equipment (2.1% from 3.1%). Meanwhile, the annual growth in the crude materials, inedible except fuels index grew by 2.4 percent from 1.3 percent; mineral fuels, lubricants and related materials, 3.4 percent from 3.1 percent; manufactured goods classified chiefly by materials, 4.2 percent from 3.7 percent; and miscellaneous manufactured articles, 5.7 percent from 4.8 percent. The beverages and tobacco index retained its last month's rate of 3.4 percent.

• Meanwhile, annual average growth rate of the wholesale prices in Mindanao decelerated by 1.7 percentage points to 2.7 percent in 2011 from 4.4 percent in 2010. This was due to the slowdowns in the annual average growth rates of the food index at 2.2 percent from 6.9 percent and mineral fuels, lubricants and related materials index, 3.2 percent from 10.7 percent. Meanwhile, the annual average growth rate of beverages and tobacco index gained 2.7 percent from 0.9 percent; crude materials, inedible except fuels, 0.7 percent from -4.3 percent; chemicals, including animal and vegetable oils and fats, 3.0 percent from -0.2 percent; manufactured goods classified chiefly by materials, 2.9 percent from 1.1 percent; machinery and transport equipment, 2.3 percent from 0.8 percent; and miscellaneous manufactured articles, 4.8 percent from 2.8 percent.

• By Commodity Group, Month-on-Month

  The month-on-month growth rate of the GWPI in the country dropped to -0.2 percent in December from 1.4 percent in November as declines were posted in the corresponding indices of food and mineral fuels, lubricants and related materials at -0.6 percent and -0.7 percent. Slower monthly upticks were noted in the indices of the following: crude materials, inedible except fuels, 1.7 percent from 7.6 percent; chemicals, including animal and vegetable oils and fats and manufactured goods classified chiefly by materials, 0.5 percent from 2.3 percent and 0.8 percent, respectively; and miscellaneous manufactured articles, 0.3 percent from 0.4 percent. The indices of beverages and tobacco and machinery and transport equipment remained stable during the month.

   

  • Price roll backs in petroleum products and lower price of crude oil pushed down the mineral fuels, lubricants and related materials index in Luzon by -0.9 percent. On the other hand, higher prices of LPG correspondingly raised the group's index in Visayas and Mindanao by 1.5 percent and 0.9 percent. At the national level, the national index fell by -0.7 percent.
     

  • The -0.5 percent drop in the food index in Luzon was attributed to the decreases in the prices of selected food items such as fish, fruits and vegetables, root crops and sugar. Downward adjustments in the prices of copra meal and desiccated coconut in the area also contributed to the decline. In Visayas, lower prices of meat, selected fish species, fruits and vegetables, cooking oil, sugar and spices effected a -0.4 percent decrement in its index. Price reduction in some milk products, wheat flour and some fruits and vegetables and desiccated coconut were also observed in Mindanao. Hence, the group's index went down by -1.3 percent. In the Philippines, movement in the group's index was registered at -0.6 percent from -0.3 percent.
     

  • The index of miscellaneous manufactured articles in Mindanao rose 0.6 percent from 0.2 percent as prices of selected clothing, footwear and miscellaneous manufactures were up during the month. Higher prices of footwear and photo films were noticed in Luzon. Thus, its group's index moved up to 0.2 percent, but was slower than the 0.5 percent growth last month. In Visayas, prices of miscellaneous manufactured articles remained stable during the period as its group's index had a zero growth. These factors caused a slower growth of 0.3 percent in the group's national index.

  • A 0.2 percent growth in the index of manufactured goods classified chiefly by materials in Mindanao was due to price add-ons in some paper products, woven fabrics and rubber tires. Similarly, higher prices of woven fabrics and cotton thread raised the group's index in Visayas by 0.1 percent. In Luzon, price additions in plywood, working gloves, yarn and paper products pushed up the group's index by 0.6 percent. Movement in the group's index at the national level was recorded at 0.5 percent.

     

  • Upward price adjustments in selected fertilizers in Visayas resulted to a 1.0 percent gain in the chemicals, including animal and vegetable oils and fats index. Higher prices of some plastics sheets, paints and selected pharmaceutical preparations were noted in Luzon. Thus, the group's index picked up to 0.6 percent. On the other hand, lower prices of selected fertilizers, varnishes and other chemical products pulled down the group's index in Mindanao by -0.1 percent. These mixed price trends effected a 0.5 percent rise in the group's index at the national level.
     

  • Price hikes in copra and abaca in Luzon contributed to the 2.2 percent increment in the crude materials, inedible except fuels index in the area. Meanwhile, a -0.2 percent drop in the group's index in Mindanao was caused by reductions in the prices of firewood and charcoal during the period. While the monthly change in the group's index in Visayas was zero, the group's index at the national level moved up at a slower pace of 1.7 percent from 7.6 percent.
     

  • From zero growth, the machinery and transport equipment index in Mindanao posted a negative rate of -0.1 percent. This was brought about by the price decrease on selected electrical wires and storage batteries. Meanwhile, the group's index in Luzon, Visayas and in the Philippines remained stable during the month.
     

  • The index of beverages and tobacco in the three areas and at the national level had a zero growth during the month.