The decline in international oil prices slowed the growth of retail prices in Metro Manila to 1.8 percent in January, according to the Philippine Statistics Authority (PSA).
Data showed that in February 2015 and January 2014, the growth in the General Retail Price Index (GRPI) in the National Capital Region (NCR) was at 2.3 percent.
“This resulted primarily from the annual decrease in the index of mineral fuels, lubricants and related materials at -21.7 percent,” PSA said.
The contraction in retail fuel prices was supported by the slowdown in retail prices of the heavily weighted food index to a growth of only 5.3 percent in January.
Other commodity retail prices also slowed. This included beverages and tobacco index at 3.2 percent; crude materials, inedible except fuels index, 5.6 percent; chemicals, including animal and vegetable oils and fats index, 2 percent; and manufactured goods classified chiefly by materials index, 2.5 percent.
A faster annual increase was, however, noted in machinery and transport equipment index at 0.2 percent, while that for miscellaneous manufactured articles index remained at 1.8 percent.
On a monthly basis, the GRPI declined 0.2 percent in January also due to cheaper oil prices. “The continuous price reductions in gasoline, LPG, diesel fuel and kerosene further pushed down the index of mineral fuels, lubricants and related materials index by 7.2 percent,” the PSA said.
Further, the month-on-month increase in food prices was flat at 0.2 percent and beverages and tobacco, 0.3 percent.
The PSA also said there was also flat growth, or 0.1-percent growth in the prices of gravel; manufactured goods classified chiefly by materials; miscellaneous manufactured articles, which included select furniture items and ready-made garments.
Data also showed there was a zero growth in the indices of chemicals, including animal and vegetable oils and fats and machinery and transport equipment. The GRPI is a statistical measure of the changes in the prices at which retailers dispose of their goods to consumers or end-users relative to a base year.
It is an indicator used to monitor the economic situation of the retail trade sector. It is also used as a deflator of the National Accounts especially on the retail trade sector and serve as a basis for forecasting business in the retail trade.