PRICE GROWTH at the wholesale level rose to 3.1% in July, the strongest reading in two months, the Philippine Statistics Authority (PSA) reported on Thursday, due to higher price growth in beverages and tobacco.
Citing preliminary data, the PSA said the general wholesale price index (GWPI) picked up the pace from 3% growth in June. A year earlier, the rate had been 2.4%.
The recent high had been 3.5% reported in May.
In the first seven months, the national GWPI averaged 3.3%, against 2.7% a year earlier.
“The uptrend in the annual growth rate of the GWPI was mainly caused by the higher annual growth rate in the index of beverages and tobacco at 3.6% in July 2025 from 2.6% in the previous month,” the PSA said in a report.
Cid L. Terosa, an economist at University of Asia and the Pacific, said sin taxes pushed tobacco prices upward.
“The government is still focused on implementing more taxes on tobacco and other sin products,” Mr. Terosa said via e-mail.
In July, the Bureau of Internal Revenue increased floor prices for cigarettes, heated tobacco products, and vapor products.
Excise tax collections from tobacco products totaled P58.97 billion in the first half, up 34.16%. Collections generated by vapor products rose 738.09% to P1.50 billion.
“Higher smoking prevalence, particularly of e-cigarettes and other vapor products, is pushing cigarette prices up due to greater demand. Meanwhile, the emergence of alcoholic beverage varieties has stimulated greater demand,” Mr. Terosa added.
Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said the uptick in July drove higher prices, as firms worldwide built up inventory before tariffs took effect.
He added that some key imported items and raw materials may have driven the index higher.
Price growth accelerated in crude materials, inedible except fuels (90.7% in July from 88.7% in June), chemicals including animal and vegetable oils and fats (12.8% from 12.7%), manufactured goods classified chiefly by materials (0.9% from 0.8%), and miscellaneous manufactured articles (0.4% from 0.3%).
The PSA added that a slowdown was seen in the heavily weighted food segment, where price growth decelerated to 1.6% in July from 1.9% in June.
Wholesale price growth was steady for mineral fuels, lubricants and related materials, and machinery and transport equipment, at minus 2.6% and 1.1%, respectively.
Wholesale price growth in Luzon eased to 3.1% in July from 3.2% in June. A year earlier it had been 2.3%.
Price growth in the Visayas accelerated to 3.1% in July from 2.5% in June. This was the highest growth rate since the 3.3% posted in July 2024.
Mindanao wholesale price growth accelerated to 1.6% in July from 1.1% in June. This was the strongest growth since the 2.4% recorded in August 2024.
Mr. Erece said that GWPI may continue to climb as the effects of typhoons disrupt supply chains and lead to higher prices.
“The onset of the holiday season may increase demand for manufactured goods and other products, further pressuring prices higher,” he said via e-mail.
“Luzon’s moderating wholesale prices can be traced to weaker demand due to monsoon rains and typhoons last July,” Mr. Terosa said.
“Local developments that might influence wholesale prices include supply disruptions due to La Niña, greater seasonal production and demand due to the onset of the ‘ber’ months, and changes in sin taxes.”
Mr. Terosa added that US tariffs, geopolitical tensions, and supply chain disruptions could affect wholesale prices for the rest of 2025.
A 19% US tariff on Philippine goods took effect last Aug. 7. — Pierce Oel A. Montalvo
