Year-on-Year Inflation Rates, All Items
July 2006 - July 2007

         p - pleminary
         r - revised

Year-on-Year

• Year-on-year inflation rate of the General Wholesale Price Index (GWPI) at the national level continued to move up at a slower pace of 0.5 percent in July compared to 1.3 percent growth in June. Annual price decreases were still noticed in mineral fuels, lubricants and related materials at -9.6 percent in July from -7.9 percent in June. Moreover, annual price increments in food items decelerated to 3.9 percent in July from 4.2 percent in June; crude materials, inedible except fuels, 14.3 percent from 20.3 percent; chemicals, including animal and vegetable oils and fats, 6.1 percent from 6.7 percent; manufactured goods classified chiefly by materials, 5.1 percent from 5.8 percent; and machinery and transport equipment, 0.2 percent from 1.0 percent. Inflation for beverages and tobacco was however higher at 1.8 percent from 1.6 percent while that for miscellaneous manufactured articles remained at its previous month? rate of 0.8 percent.
   
  

• On an annual basis, wholesale prices in Luzon dropped by -0.6 percent in July from 0.7 percent in June. This was brought about by the corresponding declines in the annual rates of changes in the prices of mineral fuels, lubricants and related materials and machinery and transport equipment during the month at -10.2 percent and -0.4 percent from -8.3 percent and 0.6 percent, respectively. In addition, annual inflation of the following commodity groups moved at a slower rate: food items, 2.2 percent from 3.1 percent; crude materials, inedible except fuels, 15.4 percent from 21.7 percent; chemicals, including animal and vegetable oils and fats, 6.6 percent from 7.3 percent; manufactured goods classified chiefly by materials, 4.9 percent from 5.6 percent; and miscellaneous manufactured articles, 0.5 percent from 0.6 percent. For four consecutive months, inflation rate of beverages and tobacco was posted at 1.2 percent.
   
  

• Meanwhile, inflation rate in Visayas advanced to 6.2 percent in July from 5.1 percent in June. Higher annual increases were correspondingly observed in the prices of food items and beverages and tobacco at 14.0 percent and 3.8 percent in July from their respective June rates of 11.0 percent and 2.9 percent. On the other hand, annual price hikes of crude materials, inedible except fuels eased to 11.3 percent from 17.5 percent; chemicals, including animal and vegetable oils and fats, 4.9 percent from 5.1 percent; and manufactured goods classified chiefly by materials, 3.8 percent from 4.0 percent. Movement in mineral fuels, lubricants and related materials and miscellaneous manufactured articles were at -3.0 percent and -0.5, respectively from -4.1 percent and -0.2 percent. Inflation for machinery and transport equipment was still at its last month? rate of 2.4 percent.
   
  

• Annual inflation rate in Mindanao picked up by 3.6 percent in July from 3.4 percent in June. Annual price additions in food items and beverages and tobacco were correspondingly higher at 4.9 percent and 3.0 percent in July from their respective June rates of 4.2 percent and 2.4 percent. However, inflation rate for chemicals, including animal and vegetable oils and fats slowed down to 4.4 percent from 4.5 percent in June; manufactured goods classified chiefly by materials, 8.4 percent from 8.7 percent; machinery and transport equipment, 2.6 percent from 2.7 percent; and miscellaneous manufactured articles, 3.8 percent from 3.9 percent. Annual price movements in crude materials, inedible except fuels and mineral fuels, lubricants and related materials further went down to -1.2 percent and -6.0 percent.
   
  

• By Commodity Group, Month-on-Month

           The general level of wholesale prices at the national level went up by 0.3 percent in July, the same rate registered last month.
   
  

  • Higher prices of chicken, eggs, milk, milled rice, mangoes, coffee, margarine and wheat flour pushed up the index for food in Luzon by 0.2 percent and in Mindanao by 1.2 percent. Likewise, the group's index in Visayas was up by 2.8 percent due to the upward adjustments in the prices of selected fish species, coffee, energy drinks and cooking oil. Thus, the national index for food grew by 0.7 percent.
     
    

  • Add-ons in the prices of softdrinks pushed the beverages and tobacco index in Mindanao by 0.6 percent from 0.2 percent. In Visayas, the group's index moved up by 0.8 percent as price increases on selected cigarettes and softdrinks were seen during the month. This was however slower than the 1.3 percent growth registered last month. Meanwhile, a zero growth was noted in the group's index in Luzon. These mixed price trends resulted to a slower increase of 0.2 percent from 0.4 percent in the national index.
     
    

  • Reductions in the prices of copra in Luzon and in Visayas caused the group's index for crude materials, inedible except fuels in the two areas and in the Philippines to correspondingly drop by -3.8 percent, -5.3 percent and -3.7 percent. Prices of crude materials, inedible except fuels generally remained stable in Mindanao as the rate of change in its group's index was still zero.
     
    

  • Increments in the prices of kerosene and gasoline in Visayas raised its index for mineral fuels, lubricants and related materials by 1.2 percent in July from -0.3 percent in June. Likewise, the index in Luzon and in the Philippines went up by 0.8 percent brought about by the price hikes in selected petroleum products. These were however slower than their corresponding previous month? rates of 1.1 percent and 1.0 percent. On the other hand, the downward price adjustments of LPG in Mindanao effected a 0.1 percent drop in its group's index.
     
    

  • Price decreases in coconut oil and paints pulled down the index for chemicals, including animal and vegetable oils and fats in Luzon by -0.6 percent and -0.5 percent in the Philippines. Lower prices of fertilizers in Mindanao also brought down its group's index by -0.1 percent. In Visayas, prices of chemicals, including animal and vegetable oils and fats generally remained stable as its group's index had a zero growth during the month.
     
    

  • The index for manufactured goods classified chiefly by materials in the Philippines and in Luzon rose by 0.2 percent as prices of cement, steel bars, door panels and G.I. wires were higher during the month. Meanwhile, no price movement was noticed in Visayas and Mindanao as zero was posted in their monthly rate of change.
     
    

  • Prices of machinery and transport equipment in the four areas generally remained stable as their indices registered zero growth during the month.
     
    

  • A 0.1 decrease was noted in the index of miscellaneous manufactured articles in Mindanao due to the price declines in wristwatches. On the other hand, the group's index in Visayas grew by 0.2 percent brought about by the price increases in wristwatch and photo film. Monthly inflation rate of miscellaneous manufactured articles in Luzon and in the Philippines was zero.
     
    

  
  

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  Source:   National Statistics Office
                   Manila, Philippines
   
  Page last revised:   October 13, 2007