PHL wholesale price growth accelerates to 1.7% in Feb.

Price growth in wholesale goods accelerated to a two-month high in February, driven by stronger growth in the index of chemicals including animal and vegetable oils and fats, the Philippine Statistics Authority (PSA) reported Wednesday.

Citing preliminary data, the PSA said the general wholesale price index (GWPI) rose 1.7% year-on-year in February.

This was weaker than the 2.9% posted a year earlier, though it accelerated from the 1.6% logged in January.

The February reading was the strongest in two months, or since December’s 1.9%.

In the year to date, the GWPI averaged 1.7%, easing from the 2.9% posted in the first two months of 2025.

Ateneo Center for Economic Research and Development Senior Research Fellow Ser Percival K. Peña-Reyes said the modest increase in GWPI growth was driven by easing inflation pressures combined with short-term supply and demand factors.

“That it is lower than last year indicates easing inflationary pressure overall. That it has slightly increased from January 2026 is likely due to short-term factors like fuel, food prices, or exchange rate changes,” he said via Viber.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the increase likely reflects early spillovers from rising global commodity prices, particularly fuel and raw materials, even as growth remains lower year-on-year due to base effects and moderate demand.

“In short, prices are picking up again but not yet accelerating sharply,” he said via Viber.

Inflation rose to 2.4% in February, from 2% in January and 2.1% a year earlier. It was the strongest reading since the 2.9% posted in January 2025.

The PSA noted the increase in the index of chemicals including animal and vegetable oils and fats to 3.6% from 2.5% in January.

The chemicals including animal and vegetable oils and fats index accounts for 10.1% of the wholesale basket of goods.

“In addition, faster annual increments were recorded in the indices of beverages and tobacco at 2.6% during the month from 2.1% in January 2026, and crude materials, inedible except fuels at 6.5% in February 2026 from 3.1% in the previous month,” the PSA said.

Also accelerating were the index of mineral fuels, lubricants and related materials, to 0.5% in February, a turnaround from the 0.4% drop in January.

The category posting weaker price growth was food, with a reading of 2.5% in February from 2.7% in January, the PSA said.

Manufactured goods classified chiefly by materials also eased to 0.1% from 0.3% in January.

“The February uptick in these components reflects renewed cost pressures coming from upstream sectors, especially raw materials, fuel, and imported inputs, rather than a surge in consumer demand,” Mr. Peña-Reyes said.

He warned that these are “early signals that could later influence retail inflation if sustained.”

“The turnaround in fuel-related items is consistent with the recent rebound in oil prices, which is beginning to feed into wholesale costs,” Mr. Rivera said.

He added that the rise in crude materials points to higher prices for agricultural and industrial raw inputs.

By major island group, bulk prices in the wholesale level were mixed.

Luzon wholesale price growth was steady at 1.5%.

Meanwhile, bulk price growth in the Visayas accelerated to 3.3% from the 1% a year earlier and the 3.2% registered in January 2026. It was the strongest reading since the 5% posted in June 2024.

It also exceeded the 1.7% national average.

On the other hand, GWPI in Mindanao came in at 2%, against 0.7% in February 2025 and 2.3% in January.

Despite surpassing the national average, it was the weakest reading since the 1.6% posted in July 2025.

Analysts expect the upward trend to persist in the near term.

Mr. Rivera noted that wholesale prices are likely to trend “slightly higher, driven mainly by elevated oil prices and transport costs,” though he expects the increase to remain gradual unless global energy prices surge further.

Mr. Peña-Reyes projected that March figures may possibly exceed 1.7%, fueled by exchange rate fluctuations and raw material costs. — Heather Caitlin P. Mañago