May 2010

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

p - pleminary
r - revised

Year-on-Year

• On an annual basis, the movement in the country's General Wholesale Price Index (GWPI) further slowed down to 7.2 percent in May from 9.0 percent in April. An annual decline was still recorded in the miscellaneous manufactured articles index at -0.5 percent from -0.2 percent. Moreover, slower annual price changes were noted in the indexes of the following commodity groups: crude materials, inedible except fuels at 2.9 percent in May from 5.8 percent in April; mineral fuels, lubricants and related materials, 26.6 percent from 37.5 percent; and chemicals, including animal and vegetable oils and fats, 0.6 percent from 1.6 percent. On the other hand, a higher annual price gain was seen in the food index at 5.8 percent from 5.4 percent; beverages and tobacco, 1.4 percent from 1.2 percent; and manufactured goods classified chiefly by materials, 0.9 percent from 0.4 percent. The annual rate for machinery and transport equipment index remained at 0.4 percent.
  

• The annual price increment in the GWPI in Luzon decelerated to 8.1 percent in May from 10.1 percent in April. An annual price reduction of -0.7 percent was still posted in the index of miscellaneous manufactured articles. In addition, the annual growth rate in crude materials, inedible except fuels index eased to 2.8 percent in May from 6.8 percent in April; mineral fuels, lubricants and related materials, 28.7 percent from 41.0 percent; and chemicals, including animal and vegetable oils and fats, 0.5 percent from 1.8 percent. However, the annual growth rate in the food index was higher at 6.0 percent from 5.2 percent; manufactured goods classified chiefly by materials, 0.9 percent from 0.3 percent; and machinery and transport equipment, 0.6 percent from 0.5 percent. For three consecutive months, the annual price movement in the beverages and tobacco index was 2.2 percent.
  

• Similarly, the annual price adjustment in the GWPI in Visayas decelerated to 2.8 percent in May from 3.8 percent in April. Annual price declines were still noted in the indexes of the following commodity groups: beverages and tobacco, -3.7 percent from -5.3 percent; machinery and transport equipment, -1.0 percent from -1.1 percent; and miscellaneous manufactured articles, -1.2 percent from -0.3 percent. A slower annual price hike was also observed in the food index at 2.9 percent from 3.6 percent; mineral fuels, lubricants and related materials, 13.3 percent from 19.8 percent; and chemicals, including animal and vegetable oils and fats, 1.0 percent from 1.3 percent. Meanwhile, a higher annual growth rate was registered in the index of crude materials, inedible except fuels at 6.4 percent from -1.2 percent. The annual growth for manufactured goods classified chiefly by materials index was at its previous month's rate of 0.2 percent.
  

• In Mindanao, the annual growth rate of the wholesale prices of commodities slowed to 4.3 percent in May from 5.4 percent in April. The annual price change in the index of crude materials, inedible except fuels dropped to -0.7 percent from 1.4 percent. Moreover, a slower annual price increase was noted in the food index at 6.6 percent in May from 9.1 percent in April; manufactured goods classified chiefly by materials, 1.5 percent from 2.0 percent; machinery and transport equipment, 0.5 percent from 1.0 percent; and miscellaneous manufactured articles, 1.9 percent from 2.6 percent. However, the annual price gain for the index of mineral fuels, lubricants and related materials advanced to 11.3 percent from 11.2 percent while those for beverages and tobacco and chemicals, including animal and vegetable oils and fats were still at their respective last month's rates of 0.9 percent and 0.3 percent.
  

• By Commodity Group, Month-on-Month

  On a monthly basis, wholesale prices at the national level dropped to -0.5 percent in May from 0.3 percent in April as downward price movements were correspondingly posted in the indexes of mineral fuels, lubricants and related materials and miscellaneous manufactured articles at -2.7 percent and -0.2 percent from 2.5 percent and 0.1 percent, respectively. Slower price increments were also recorded in the indexes of chemicals, including animal and vegetable oils and fats at 0.1 percent from 0.3 percent and manufactured goods classified chiefly by materials at 0.4 percent from 0.5 percent. Meanwhile, a higher price hike was registered in the index of crude materials, inedible except fuels at 1.1 percent from zero growth. The monthly price adjustment in machinery and transport equipment index was still at its last month's rate of 0.1 percent while those for food items and beverages and tobacco remained stable as their group's index had a zero growth during the month.
  

  • The decline in the index of mineral fuels, lubricants and related materials at -2.8 percent in Luzon was mainly due to the price reductions in crude oil and petroleum products. Roll backs in the prices of gasoline, kerosene and diesel oil also pushed down the group's index in Visayas by -3.8 percent. Thus, the national index dropped to -2.7 percent. In Mindanao, no price change was seen in mineral fuels, lubricants and related materials as its group's index had a zero growth during the period.
    

  • The miscellaneous manufactured articles index in the Philippines, Luzon and Mindanao went down by -0.2 percent. This can be attributed to the price decreases in some undergarments and clothing in Luzon and watches in Mindanao. Meanwhile, the miscellaneous manufactured articles index in Visayas posted a zero growth during the month.
    

  • Uptick in the prices of selected pharmaceutical preparations, paints, washing and cleaning compounds resulted to a 0.2 percent increase in chemicals, including animal and vegetable oils and fats index in Luzon. On the other hand, the group's index in Visayas and Mindanao had a zero growth during the month. Hence, the group's index in the Philippines moved up at a slower pace of 0.1 percent from 0.3 percent.
    

  • Higher prices of selected electrical apparatus raised the machinery and transport equipment index in Luzon and in the Philippines by 0.1 percent. In Visayas and Mindanao, prices of machinery and transport equipment remained stable as their index had a zero growth.
    

  • A 0.4 percent price gain in the manufactured goods classified chiefly by materials index was posted in Luzon due to price hikes in cement, plywood, G.I. sheets and steel bars. Meanwhile, downward adjustments in the prices of selected rubber tubes and angle bars in Visayas contributed to the -0.1 percent decline in its group's index. The group's index in Mindanao had a zero growth during the month. These mixed price trends effected the 0.4 percent growth in the national index, slower than the 0.5 percent last month.
    

  • The 8.2 percent increment in crude materials, inedible except fuels index in Visayas was brought about by higher prices of copra in the area during the period. The soaring prices of the same commodity and higher prices of gravel and sand in Luzon also pulled up the group's index in the area by 0.5 percent. Meanwhile in Mindanao, no price movement was recorded in the group's index as it had a zero growth. The group's national index grew by 1.1 percent.
    

  • Add-ons in the prices of garlic, calamansi and energy food drinks were noted in Visayas during the month. It resulted to a 0.1 percent increase in the food index in the area, but was slower than the 0.7 percent growth last month. However, movement in the group's index in Luzon was negative at -0.1 percent due to price cuts in selected food items such as fruits, vegetables and some fish species. In Mindanao, the group's index remained stable during the reference period. The growth in the group's index in Visayas was offsetted by the decline in its index in Luzon, hence a zero growth was registered in its national index.
    

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

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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.