Wholesale prices nationwide declined for the fifth consecutive month in March 2015, according to the Philippine Statistics Authority (PSA).
The PSA said that, based on the Philippines’s General Wholesale Price Index (GWPI), the country’s GWPI declined 4.9 percent in March 2015.
The GWPI started to post contractions in November 2014 with 0.4 percent. However, the largest decline in the GWPI was seen in January, with a contraction of 6.6 percent.
“This was effected by the annual declines still observed in the indices of crude materials, inedible except fuels at -8.1 percent; and mineral fuels, lubricants and related materials, -33 percent,” the PSA said.
Data also showed that slower annual growths were seen in the food index at 7.4 percent; chemicals including animal and vegetable oils and fats index, 1.9 percent; machinery and transport equipment index, 2.4 percent; and miscellaneous manufactured articles index, 1.8 percent.
However, the PSA noted that higher annual rates were noted in the indices of beverages and tobacco and manufactured goods classified chiefly by materials at 8 percent and 2.2 percent, respectively.
Data also showed that the GWPI in Luzon dropped 5.4 percent in March. This was attributed to the declines in crude materials, inedible except fuels index at 9.9 percent; and mineral fuels, lubricants and related materials index, 34 percent.
A similar trend was seen in the GWPI in the Visayas, with a contraction of 1.9 percent in March. The index for mineral fuels, lubricants and related materials declined 25 percent.
In Mindanao the 3-percent drop in the GWPI was due to the contraction in the food index at 1.1 percent; mineral fuels, lubricants and related materials index, 23.9 percent; and miscellaneous manufactured articles index, 0.2 percent.
On a monthly basis, the GWPI at the national level moved up at a slower pace of 0.3 percent in March. Contractions were recorded in the indices of crude materials, inedible except fuels at 0.1 percent; and miscellaneous manufactured articles, 0.2 percent.
“The increases in mineral fuels, lubricants and related materials index slowed to 1 percent; and chemicals including animal and vegetable oils and fats index, 0.1 percent,” the PSA added. However, higher gains were noted in beverages and tobacco index at 1.2 percent; manufactured goods classified chiefly by materials index, 0.3 percent; and machinery and transport equipment index, 0.4 percent. The food index remained stable, as it had zero growth.
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 the sum of the producer price, wholesale trade margin, tax mark-ups and distribution cost of the wholesaler.