Wholesale price growth unchanged in February

PRICE GROWTH of wholesale goods remained steady in February the Philippine Statistics Authority (PSA) reported on Wednesday.

Citing preliminary data, the PSA said the general wholesale price index (GWPI) that month was unchanged at 2.9% year on year compared to January. The year-earlier growth rate had been at 2.8%.

In the first two months of the year, GWPI growth averaged 2.9%, against 3.2% a year earlier.

Rischelle Alysha T. Legaspi, economist from Oikonomia Advisory & Research, Inc., said the stabilizing GWPI could be attributed to easing inflation overall.

“While the cost of imports becomes more expensive due to depreciation, the slowdown in price rises offset depreciation effects,” Ms. Legaspi said in an e-mail.

In February, headline inflation eased to 2.1%, the slowest reading in five months, or since the 1.9% posted in September.

In the first two months, inflation averaged 2.5%, within the central bank’s 2-4% target.

The PSA noted accelerated growth in prices of crude materials, inedible except fuels (60.6% in February from 58.6% in January), chemicals including animal and vegetable oils and fats (10.1% from 9.9%), and machinery and transport equipment (1.6% from 1.3%).

Price growth in manufactured goods classified chiefly by materials slowed to 0.9% from 1.1%, while that for mineral fuels, lubricants and related materials dropped to 0.3% from 0.8% in January.

The heavily weighted food index was steady at 2.3%, as were beverages and tobacco (2.9%) and miscellaneous manufactured articles (-0.1%).

Wholesale price growth in Luzon was unchanged at 3.2% in February. A year earlier, GWPI in Luzon had been 2.6%.

In the Visayas, GWPI slowed to 1% during the period, against 1.6% in January and 6.1% in February 2024.

Price growth in Mindanao was 0.7%, against 0.6% in January and 2.5% in February 2024. — John Phoebus G. Villanueva