Wholesale price growth slows to 2.4% in July – PSA

THE annual increase of the general wholesale price index (GWPI) in the country eased to 2.4 percent in July from 2.6 percent in June, and lower than the 4.5 percent in the same period last year, according to a report from the Philippine Statistics Authority (PSA).

“The downtrend in the annual rate of GWPI in the country was primarily caused by the lower annual increase in the index of food,” said the PSA. The food price index dropped 3.6 percent from 4.0 percent in June.

Lower annual increments were also noted in the indices of other commodity groups.

Prices of beverages and tobacco, for instance, fell 2.0 percent from 3.4 percent in June, and manufactured goods classified chiefly by materials at 1.0 percent from 1.2 percent in the previous month.

The price index of miscellaneous manufactured articles was likewise lower at 0.2 percent in July from an annual drop of 0.1 percent in June.

However, annual increments were higher in the indices of crude materials, inedible except fuels at 8.2 percent from 4.5 percent; mineral fuels, lubricants and related materials at 6.6 percent from 6.3 percent; and chemicals including animal and vegetable oils and fats at 3.6 percent from 2.7 percent.

The index of machinery and transport equipment retained an annual increase of 0.3 percent during the month.

The Luzon region also recorded a lower annual increase at 2.3 percent compared to 4.6 percent last year and 2.4 percent in the previous month.

The annual growth rate of GWPI in Visayas also slowed down to 3.3 percent in July from 5.0 percent in June, and 3.9 percent in July 2023.

Wholesale prices in Mindanao fell 1.6 percent from 2.5 percent a month earlier and 4.3 percent last year.

The PSA attributed the downtrend to a lower annual increase in the food index, which declined at 3.2 percent in Luzon, 7.3 percent in the Visayas, and 3.2 percent in Mindanao.

The GWPI measures the changes in the price levels of commodities that flow into the wholesale trade intermediaries. Wholesale price is the value of commodities transacted in bulk for further resale or processing.