Wholesale prices nationwide further declined in January 2015 due to the sharp drop in pump prices, according to the Philippine Statistics Authority (PSA).
The General Wholesale Price Index (GWPI) contracted 6.6 percent in January 2015. In December 2014 the GWPI dropped 4.1 percent. The index posted a growth of 4.6 percent in January 2014.
PSA data showed the GWPI of crude materials, inedible, except fuels index, which contracted 2.7 percent, while the mineral fuels, lubricants and related materials index declined 38 percent.
The sharp reduction in oil prices helped cushion the 5.6-percent growth in the GWPI of the heavily weighted food index.
The GWPI in Luzon posted the steepest decline at 7.5 percent, with the crude materials, inedible, except fuels index, as well as mineral fuels, lubricants and related materials index, falling 4.4 percent and 39 percent, respectively.
The GWPI in the Visayas and Mindanao both contracted 3 percent in January. The mineral fuels, lubricants and related materials index declined 29.9 percent in the Visayas and 28.5 percent in Mindanao.
Meanwhile, on a monthly basis, the GWPI nationwide contracted 2.5 percent in January 2015 due to the 14.7-percent decline in the mineral fuels, lubricants and related materials index.
“Prices of gasoline, diesel oil, kerosene and LPG were generally lower during the month. Hence, the mineral fuels, lubricants and related materials index in the Philippines declined by 14.7 percent; Luzon, -15.2 percent; Visayas, -12.9 percent; and Mindanao, -7.6 percent,” the PSA said.
The wholesale prices of food, on the other hand, posted a monthly growth of 0.6 percent. Luzon posted the highest growth in wholesale prices of food at 1.2 percent.
The PSA attributed this to higher wholesale prices of food items, such as fish, canned meat, sugar, cocoa products, fruits and some vegetables.
In the Visayas, wholesale prices of eggs, some fish species, fruits, vegetables and desiccated coconut were higher, causing the GWPI in the region to increase 0.3 percent.
However, in Mindanao, lower prices of rice, hogs and some fruits and vegetables pushed down its group’s index by 3.1 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.
The PSA also said the GWPI is the sum of the producer price, wholesale trade margin, tax markups and distribution cost of the wholesaler.