The increase in August wholesale prices of various commodities nationwide was at its slowest in 10 months, according to data released by the Philippine Statistics Authority (PSA).
The PSA’s preliminary data showed that the General Wholesale Price Index (GWPI) slowed to 3.3 percent in August, the slowest since October when the GWPI posted an increase of 2.9 percent.
The GWPI in August was slower than the 3.6 percent posted in July but still higher than the 1.5 percent recorded in August 2013.
“During the month, a negative annual rate of 2.2 percent was posted in mineral fuels, lubricants and related materials index,” the PSA said.
Further, data showed the annual gains decelerated in the indices of crude materials, inedible except fuels at 15.9 percent; chemicals, including animal and vegetable oils and fats, 5.2 percent; and miscellaneous manufactured articles, 0.1 percent.
However, the annual growth in the food index was higher at 8.1 percent; beverages and tobacco index, 2 percent; and manufactured goods classified chiefly by materials index, 1.4 percent.
“The machinery and transport equipment index moved at its last month’s rate of 3.3 percent,” the PSA added.
The GWPI in Luzon and the Visayas were both at 3.3 percent, while it was even lower in Mindanao at 3 percent.
In Luzon there was a contraction of 2.6 percent in the mineral fuels, lubricants and related materials index and slower increases in the GWPI in other commodities.
Commodities that posted slower GWPI growth in August were posted in crude materials, inedible, except fuels index, at 15.9 percent and in chemicals including animal and vegetable oils and fats index with 5.9 percent.
The GWPI in the Visayas slowed on the back of a 1.2 percent contraction in the GWPI of mineral fuels, lubricants and related materials index, and commodities that had the same GWPI growth posted in July.
The annual movements in the indices of manufactured goods classified chiefly by materials; machinery and transport equipment and miscellaneous manufactured articles remained at their respective July rates of 3.1 percent, 1.9 percent and 1 percent.
The GWPI in Mindanao slowed due to the 0.1-percent contraction in the machinery and transport equipment index as well as lower annual rates observed in the indices of other commodity groups.
These included the heavily weighted food index which slowed to 4.9 percent; crude materials, inedible except fuels, 1.8 percent; mineral fuels, lubricants and related materials, 3.1 percent; chemicals including animal and vegetable oils and fats, 1.4 percent; manufactured goods classified chiefly by materials, 1.8 percent; and miscellaneous manufactured articles, 0.5 percent.
The GWPI is an indicator designed to measure the changes in the price levels of commodities that flow into the wholesale trade intermediaries.
Wholesale price refers to the price of commodity transacted in bulk for further resale or processing. It is the actual “spot” transaction price received usually by the wholesalers, distributors or marketing agents for large lots but net of discounts, allowances and rebates.
It is also the sum of the producer price, wholesale trade margin, tax mark-ups and distribution cost of the wholesaler.
Cai U. Ordinario