Wholesale commodity prices slowed to 1.3 percent on the back of cheaper oil prices in October 2014, according to the Philippine Statistics Authority’s (PSA) latest General Wholesale Price Index (GWPI).
PSA data showed the year-on-year increase in the GWPI was slower compared to the 1.7-percent growth posted in September and 2.9 percent posted in October 2013.
“The slowdown resulted from an annual decline of 9 percent in mineral fuels, lubricants and related materials index. In addition, a slower annual gain was noted in the heavily weighted food index at 5.9 percent,” the PSA said.
However, the PSA said wholesale prices of beverages and tobacco increased 6.6 percent; crude materials, inedible except fuels index, 14.5 percent; and chemicals including animal and vegetable oils and fats index, 5.5 percent.
Other commodities that posted increases in wholesale prices were manufactured goods classified chiefly by materials at 2.3 percent, and miscellaneous manufactured articles, 0.4 percent.
Meanwhile, the slowest increase in GWPI was recorded in Luzon at 1.1 percent in October. This was largely due to the 9.3-percent contraction in the mineral fuels, lubricants and related materials index.
This was also supported by a slowdown in the annual increase in the food index at 6.1 percent in October 2014.
The annual increase in the GWPI in the Visayas and Mindanao also slowed to 2.8 percent and 1.5 percent in October 2014, respectively.
The slowdown in the GWPI in the Visayas was largely due to the 2.8-percent contraction in the mineral fuels, lubricants and related materials index and the lower annual growth of 18.5 percent in crude materials, inedible except fuels index.
The slowdown in the GWPI in Mindanao was largely due to the 9.3-percent contraction in the mineral fuels, lubricants and related materials index.
The PSA added that slower annual growths were noted in the indices of crude materials, inedible except fuels at 3.3 percent and chemicals including animal and vegetable oils and fats, 1.4 percent. The GWPI is an indicator designed to measure the changes in the price levels of commodities that flow into the wholesale trade intermediaries.
The PSA explained that the wholesale price refers to the price of commodity transacted in bulk for further resale or processing. It is the actual “spot” transaction price received by wholesalers, distributors or marketing agents for large lots but net of discounts, allowances and rebates.