RETAIL price growth in the National Capital Region (NCR) eased to 15-month low in July as price growth in the heavily weighted food segment continued to slow, the Philippine Statistics Authority (PSA) reported on Thursday.
The general retail price index (GRPI) in Metro Manila rose 3.9% year on year in July, decelerating from 4.4% in June and the year-earlier 5.1%.
The July reading was the lowest in 15 months, or since the 3.5% growth posted in April 2022.
In the year to date, retail price growth in the NCR averaged 5.3%, still exceeding the year-earlier rate of 3.5%.
“The downtrend in the annual growth of GRPI in the NCR was primarily influenced by the slower annual increase in the heavily weighted food index at 8.2% in July 2023 from 9.5% in the previous month,” the PSA said in a statement.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort attributed the July result to base effects from 2022, when prices were generally stronger.
“Better local weather conditions since the early part of 2023 led to higher domestic supply of food and other agricultural products. By comparison, there was some storm damage (which had restricted supply in 2022),” Mr. Ricafort said in an e-mail.
Price growth also slowed in beverages and tobacco (6.1% in July from 6.4% in June); crude materials, inedible except fuels (4.0% from 4.5%); chemicals, including animal and vegetable oils and fats (3.1% from 3.7%); and manufactured goods (2.5% from 2.6%).
Meanwhile, the decline in mineral fuels, lubricants, and related materials eased to 15.3% in July from the 16.1% contraction in June.
Price growth in machinery and transport equipment as well as in miscellaneous manufactured articles was flat at 1.4% and 1.7%, respectively.
Despite the consecutive months of slower growth in retail prices, Mr. Ricafort expects the diminishing impact of year-earlier base effects in major global commodities to start manifesting in September 2023.
He said the result could be “some normalization of the inflation base (which) could potentially limit any further year-on-year easing in prices.” — Andrea C. Abestano
