The growth rate of retail prices for general goods in Metro Manila slowed to its lowest pace in two months in May, driven by a decrease in the prices of mineral fuels and lubricants. The general retail price index rose by 4% year on year in May, faster than the 0.8% growth posted in the same month a year earlier. Month on month, growth slowed from 4.5% posted in April. This slowdown marks the weakest growth in two months, since the 3.3% logged in March.
In the first five months of the year, the general retail price index averaged 3.2%, more than double the 1.1% pace in the same period a year earlier. The decrease in the annual growth rate of the general retail price index in May was primarily due to the slower annual increment in the index of mineral fuels, lubricants, and related materials. This index grew by 36.6% in May, down from 51.3% in the previous month.
The subindex for mineral fuels, lubricants, and related materials accounts for 4.17% of the general retail price index. The heavily weighted food subindex, which accounts for 37.5% of the general retail price index, saw a softer rise of 3.1% in May compared with 3.2% posted in April. Other commodity groups, such as beverages and tobacco, chemicals, and manufactured goods, posted stronger growth in May.
Some commodity groups saw steady growth rates in May, including crude materials and miscellaneous manufactured articles. The general retail price index is based on 2012 constant prices and serves as a deflator in the National Accounts, particularly in the retail trade sector. It also provides a basis for forecasting, helping to inform economic decision-making and policy development.
