The growth in prices of traded goods accelerated to a two-month high in February, driven by strong growth in the chemical index that includes animal and vegetable fats and oils, the Philippine Statistics Authority (PSA) reported on Wednesday.
Citing preliminary data, the PSA said the general price index (GWPI) rose 1.7% year-on-year in February.
This was weaker than the 2.9% posted a year ago, although it accelerated from the 1.6% posted in January.
February’s reading was the strongest in two months, or since December at 1.9%.
In the year to date, GWPI has averaged 1.7%, down from 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 slight increase in GWPI growth is driven by the reduction of inflationary pressures combined with the necessary temporary factors.
“The fact that it is lower than last year shows an increase in general inflationary pressure. The fact that it increased slightly from January 2026 may be due to short-term factors such as fuel, food prices, or exchange rate changes,” he said via Viber.
John Paolo R. Rivera, a senior researcher at the Philippine Institute for Development Studies, said that this growth may reflect the increase in global commodity prices, especially fuel and raw materials, as growth remains low year after year due to base effects and limited demand.
“In short, the prices are going up again but not too much,” he said of Viber.
Inflation rose to 2.4% in February, up from 2% in January and 2.1% last year. It was the strongest reading since the 2.9% posted in January 2025.
The PSA noted an increase in the index of chemicals including animal and vegetable fats and oils to 3.6% from 2.5% in January.
Chemicals including animal and vegetable fats and oil index make up 10.1% of the total basket of goods.
“Furthermore, the fastest annual increase was recorded in the indices of beverages and tobacco at 2.6% during the month from 2.1% in January 2026, and crude, inedible items other than fuel at 6.5% in February 2026 from 3.1% last month,” PSA said.
Another sharp move was the index for fossil fuels, lubricants and related products, which rose 0.5% in February, a reversal from a 0.4% decline in January.
The sector that showed weak price growth was food, as it read 2.5% in February from 2.7% in January, PSA said.
Manufactured goods divided mainly by construction materials also fell to 0.1% from 0.3% in January.
“February’s increase in these components reflects renewed cost pressures from rising sectors, especially raw materials, fuel, and exports, instead of rising consumer demand,” said Mr. Peña-Reyes.
He warned that these are “early signs that may have an impact on commodity prices if they continue.”
“The change in fuel-related items coincides with the recent increase in oil prices, which are beginning to eat into wholesale costs,” said Mr. Rivera.
He also added that the increase in raw materials points to higher prices for agricultural and industrial goods.
For the larger island group, bulk prices at the wholesale level are combined.
Luzon wholesale price growth was steady at 1.5%.
At the same time, the growth of the mass in the Visayas increased to 3.3% from 1% last year and 3.2% registered in January 2026. It was the strongest reading from the 5% posted in June 2024.
It also exceeded the national average of 1.7%.
On the other hand, the GWPI in Mindanao entered by 2%, compared to 0.7% in February 2025 and 2.3% in January.
Despite exceeding the national average, it was the weakest reading since it was posted at 1.6% in July 2025.
Analysts expect the upward trend to continue in the near term.
Mr. Rivera noted that wholesale prices are likely to trend “slightly higher, driven mainly by higher oil prices and transportation costs,” although he expects the increase to remain slow unless electricity prices rise further.
Mr. Peña-Reyes estimated that March’s figures could exceed 1.7%, driven by exchange rate fluctuations and raw material costs. – Heather Caitlin P. Mañago
