Factory gate prices rise faster in December in Philippines

Producer prices went up at a slightly faster pace in December from the previous month, driven largely by the manufacture of computer and electronic products.

Preliminary data released by the Philippine Statistics Authority (PSA) showed the Producer Price Index (PPI) for manufacturing posted a faster growth of 0.6 percent in December compared with the 0.2 percent increase in November.

The PPI growth in December, however, was lower than the 5.4 percent uptick in the same month in 2022.

PPI tracks the average change in the prices of products of domestic manufacturers sold at factory gate prices to wholesalers and/or other consumers in the local market relative to a base period.

‘The faster annual increase of PPI in December 2023 was primarily attributed to the annual acceleration of manufacture of computer, electronic, and optical products industry division at 3.7 percent in December 2023 from 1.8 percent in November 2023,’ the PSA said.

Computer, electronic, and optical products contributed 52.7 percent to the uptrend in PPI.

Also cited as a main contributor to the uptrend in PPI was the manufacture of coke and refined petroleum products which posted a slower decline of 4.1 percent in December from the 5.9 percent contraction in November.

The manufacture of transport equipment was another main contributor as it registered a slower drop of 3.9 percent in December from the previous month’s 4.7 percent decline.

Of the remaining 19 industry divisions, 10 had positive growth rates, while nine had negative growth rates in December.

Those that had positive growth rates in December were: beverages; food products; tobacco products; fabricated metal products, except machinery and equipment; electrical equipment; leather and related products, including footwear; rubber and plastic products; printing and reproduction of recorded media; basic pharmaceutical products and pharmaceutical preparations; and furniture.

Meanwhile, those with negative growth rates in December were: textiles; machinery and equipment except electrical; wearing apparel; other manufacturing and repair and installation of machinery and equipment; wood, bamboo, cane, rattan articles and related products; paper and paper products; non-metallic mineral products; basic metals; and chemical and chemical products.

Source link