RETAIL PRICE growth of general goods in the National Capital Region (NCR) accelerated in November, the Philippine Statistics Authority (PSA) said in a report.
Citing preliminary data, the PSA said price growth in Metro Manila as measured by the general retail price index (GRPI) was 1.4% year-on-year in November, against 1.3% in October.
The November reading slowed from 2.9% a year earlier.
The November indicator was the strongest price growth since the 1.9% in July and was level with the pace set in August.
Year to date, GRPI growth averaged 1.8%, significantly lower than the 4.6% growth in the same period in 2023.
Diwa C. Guinigundo, country analyst for the Philippines of GlobalSource Partners, noted general easing from the early October highs in global oil prices, as market participants pondered supply risk concerns, with the health of the global economy weakening oil demand and increasing inventory levels.
Mr. Guinigundo said that as a result, despite the uptick, the increase in prices was muted.
“Retail prices are closer to the experience of our consumers. But one thing we cannot deny is that retail price levels continue to be elevated, pushing people to buy less for every peso of their income,” he said via Viber.
Additionally, he said that while annual percentage changes in consumer or retail prices may look modest,the underlying price levels continue to be unaffordable for many consumers.
Headline inflation in November accelerated to 2.5% year on year from 2.3% in October, though price growth was significantly weaker than the 4.1% posted a year earlier.
Still, the inflation reading for the month settled within the central bank’s 2.2%-3% forecast for November.
The PSA attributed the acceleration in retail prices to the slower decline in the index for mineral fuels, lubricants, and related materials, which fell 3% in November from a 6.4 contraction a month earlier.
Meanwhile, the index of crude materials, inedible except fuels, picked up to 1.1% in November from 1% in October.
Growth in the heavily weighted food index was flat at 2%.
Other commodity groups that remained steady were beverages and tobacco (3.6%), manufactured goods classified chiefly by materials (1.3%), and miscellaneous manufactured articles (1.5%).
Mr. Guinigundo said the government must address the lack of infrastructure and improve supply conditions, while the central bank should focus on demand management.
According to the PSA, the GRPI is used to monitor the condition of retail trade. It is also used as a deflator in the National Accounts, particularly in the retail trade sector, and serves as a basis for forecasting. — Abigail Marie Pelea Yraola