EUR 3.48 For Business Accounts Only

PURP Index moderates on easing price

• Our Urban Retail Price Tracker—the PURP index—recorded a modest decline of 2.43% MoM to 106.3 ppts in the month of February (vs -7.4% MoM in January). We saw mixed retail price stories across our coverage segments with an overall modest pace of price decline. The combination of higher supply from both unsold stocks at the end of 2017 and increased production drove prices lower in February. Similar to January, sales volumes climbed higher across board as consumers took advantage of lower prices.
• The brewery sector continued its downward trend for the second consecutive month with prices down 0.66% MoM. Prices of premium brands under our coverage were rolled back modestly to drive demand which had hitherto slowed relative to value brands. Star larger -4.33% saw the largest decline in price.
• The consumer sector sustained its downward movement as well with prices declining 0.81% for the third consecutive month. From our findings, consumer wallets remain depressed which has led manufacturers to introduce smaller sized products at lower price points. Notably, Milo -7.4% MoM witnessed the largest decline in price.
• The commodities basket fell 3.4% MoM in February. The decline in price was on the back of competing price from imported crude palm oil as well as higher domestic supply. Likewise, the decline in the price of rice continued to reflect increased domestic production.
• In contrast to the other sectors, prices in the cement sector rose in the month of February. Both retail and wholesale price of cement rose by 1.8% and 1.52% MoM respectively.
• The oil & gas sector reversed its negative trend to expand 1.8% MoM in February. In the review period, we saw higher lubricants prices (+6.0% MoM) overshadow the effect of lower cooking gas price (-6.5% MoM).

 

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