PRICE GROWTH of wholesale goods accelerated to 11-month high in April, driven by continued geopolitical tensions in the Middle East, analysts said.
Preliminary data from the Philippine Statistics Authority (PSA) showed the general wholesale price index (GWPI) at the national level rose to 3.1% year on year in April, easing from the 4% posted a year earlier.
However, this was faster than the 2.7% GWPI growth recorded in March.
The April reading was the strongest in nearly a year or since the 3.5% posted in May 2025.
From January to April, the GWPI growth averaged 2.2%, slowing down from 3.3% in the same period in 2025.
“Higher fuel prices, supply-chain pressures, and the pass-through of elevated import costs likely contributed to the acceleration. While still below last year’s 4%, the increase signals renewed cost pressures at the wholesale level,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.
The PSA said the acceleration in the annual growth of April bulk prices was mainly caused by the stronger growth in mineral fuels, lubricants and related materials at 59.4% from 33.1% in March. The index accounts for 3.2% of the whole basket of goods.
“The rise in wholesale prices for mineral fuels, lubricants and related products was due to constricted supply arising from the Iran war, which was the most dominant factor that influenced the rise in GWPI,” Cid L. Terosa, an associate professor of economics at the University of Asia and the Pacific, said in an email.
Also citing the war, Mr. Rivera said surges in global fuel prices are quickly reflected in the country’s wholesale fuel costs.
The PSA also noted faster yearly growth in the heavily weighted index food at 3.9% in April from 3.3% in March.
Meanwhile, slower growths were recorded in beverages and tobacco (2.5% in April from 2.9% in March) and miscellaneous manufactured articles (0.7% from 0.8%).
Chemicals including animal and vegetable oils and fats saw a year-on-year decline of 3% from a 1% growth in the previous month.
Crude materials, inedible except fuels contracted by 23.3% in April from an 8.4% decline in March.
The indices of manufactured goods classified chiefly by materials (0.2%) and machinery and transport equipment (0.9%) retained their respective previous month’s annual growth rates in April.
GWPI readings by major island group were mixed in April.
The GWPI of Luzon eased to 3% in April from 4.3% a year earlier but accelerated from 2.6% in March.
This was the fastest growth in nine months or since the 3.1% posted in July 2025.
In the Visayas, GWPI grew to a nearly two-year high of 5.2% year on year from 0.7% in April 2025 and 5.1% in March 2026.
It was the fastest reading since the 5.6% posted in May 2024.
Meanwhile, bulk price growth in Mindanao rose to 2.7% in April from 1.1% a year ago but eased from 2.9% in the previous month.
Mr. Terosa sees GWPI growth to remain at elevated levels in the first semester of the year.
“The second semester could either be a pivot point towards lower GWPI or a continuation of rising GWPI, depending on developments in the Iran war,” he added.
Mr. Rivera also expects GWPI to stay elevated in the coming months if oil prices remain high and supply-side pressures persist.
“But much will depend on developments in global energy markets and the duration of geopolitical tensions. Sustained increases in wholesale prices could eventually feed into consumer prices, making inflation risks a key concern moving forward,” he said. — Isa Jane D. Acabal
