Factory prices rise again in May

MANILA, Philippines — Ex-factory prices remained on an upward trend in May, with increases recorded across nearly all industry groups, the Philippine Statistics Authority (PSA) said.

The latest PSA data showed the producer price index (PPI) for May accelerated 6.9%, faster than April’s 6.3%.

Same period last year, the index slipped three percent.

On a monthly basis, the PPI rose again to 0.4%, albeit slightly slower than the 0.6% increase in April.

The PSA attributed the recovery to annual increases in the indices of 21 industry groups, led by the manufacture of coke and refined petroleum products, which rose 20.7%.

Other significant increases were also noted in the manufacturing of basic metals, chemical and chemical products, food products, non-metallic mineral products, and machinery and equipment.

Growth was also recorded in the manufacture of computer, electronic and optical products, rubber and plastic products, beverages, paper and paper products, electrical equipment, fabricated metal products, transport, tobacco products, clothing, furniture, leather goods, basic pharmaceutical products, textiles, printing and reproduction of media.

At the same time, only the manufacture of articles of wood, bamboo, cane, rattan and related products recorded a drop of 5.5% in May.

The PPI for the manufacturing sector measures changes in the producer price of the main commodities produced by the sector. One of its uses is as a deflator to derive the production volume index and the net sales volume index.

The PPI uses 2018 as the base year compared to the previously used 2000 base period.