Wholesale, retail price slower in August 2024

Wholesale price growth in the country has slowed to its lowest level in over five years – the slowest since the pandemic began, while retail price growth in Metro Manila also cooled down in August thanks to improved economic conditions.

The Philippine Statistics Authority (PSA) said Friday that the country’s general wholesale price index (GWPI) slowed to 1.9 percent in August from the previous month’s 2.4 percent. On the other hand, the general retail price index (GRPI) in Metro Manila eased to 1.4 percent from 1.9 percent.

Price growth at the national level was the slowest in over five years or since the 1.7 percent in August 2019.

Year to date, GWPI averaged 2.5 percent, lower than the 5.1 percent a year ago.

READ: Growth in home prices eased in Q2 as high rates bit

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Robert Dan Roces, chief economist at Security Bank, attributed the lower growth to improved agricultural supply, government interventions, and changing consumer sentiment.

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“The Philippine economy is showing signs of stability, as evidenced by the easing of wholesale and retail prices in August. This is particularly encouraging for food items, which have been a major contributor to inflation,” Roces told Inquirer.

August inflation slowed to 3.3 percent from 4.4 percent in the previous month and from 5.3 percent a year ago, primarily driven by a more gradual hike in food and transport costs.

The statistics agency attributed the downtrend of the GWPI in mineral fuels, lubricants, and related materials, which slowed to three percent year on year in August from 3.6 percent in July.

This was followed by food easing to three percent from 3.6 percent in the previous months, beverages and tobacco at 1.4 percent from two percent, and manufactured goods classified chiefly by materials at 0.8 percent from 1 percent previously.

READ: Retail price index slightly up in July due to costlier fuels

In a separate report, the retail price eased to 1.4 percent, marking the slowest growth in three months.

Since the start of the year, it averaged 2 percent, down from last year’s 5.1 percent.

“The primary contributor to the deceleration in the annual growth rate of GRPI in Metro Manila was the annual decrease recorded in the index of mineral fuels, lubricants, and related materials at 1.6 percent in August from 7.4 percent annual increase in the previous month,” the report said.

Food index also recorded a lower increase at 2.1 percent from the 2.4 percent in July.