Wholesale prices continued to decline in September on the back of cheap fuel prices, according to the Philippine Statistics Authority (PSA).
PSA data showed that the General Wholesale Price Index (GWPI) contracted 4.3 percent in September.
In August the GWPI contracted 4.1 percent, while in September 2014, it had a positive growth of 1.7 percent.
“The decrease was mainly due to the negative rate in the mineral fuels, lubricants and related materials index at -27.3 percent,” the PSA said.
While wholesale prices for commodities like food items posted price increases, these were slower compared to previous months.
PSA data showed that slower increases were posted by the food index at 2.9 percent; beverages and tobacco index, 5.9 percent; and crude materials, inedible except fuels index, 0.6 percent.
Other commodities that posted slower increases were chemicals including animal and vegetable oils and fats index, 2.8 percent; manufactured goods classified chiefly by materials index, 2.1 percent; and machinery and transport equipment index, 0.7 percent.
In Luzon the GWPI further declined by 4.9 percent, as the mineral fuels, lubricants and related material index had a negative annual movement of 27.9 percent in September.
The GWPI in the Visayas dipped by 2.2 percent in September. Decreases were observed in crude materials, inedible except fuels index at -6.7 percent, and mineral fuels, lubricants and related materials index, -27.5 percent.
In Mindanao the GWPI fell by 1.6 percent. This was attributed to the negative rates in the indices of food and chemicals including animal and vegetable oils and fats at -0.4 percent; and mineral fuels, lubricants and related materials, -16.3 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 weights by Commodity Group for GWPI 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.
The index is a guide in economic analysis and policy formulation, and is used as basis for price adjustments in business contracts and projects. It also serves as an additional source of information for comparison in the international front.