Philippines: Factory gate price growth eases in April

MANILA, Philippines — The growth in producer prices of manufactured products eased in April from the previous month due mainly to the slower upticks in food products, according to the Philippine Statistics Authority (PSA).

Preliminary data released by the PSA yesterday showed the Producer Price Index (PPI) for manufacturing posted a 2.3 percent increase in April, slower than the 2.5 percent growth in March.

The PPI growth in April was also slower than the 6.3 percent upturn in the same month last year.

“The deceleration of PPI in April 2023 was primarily brought about by the slowdown in the annual increase in manufacture of food products industry division at 4.4 percent in April 2023 from 5.5 percent annual increase in March 2023,” the PSA said.

Other main contributors to the slower PPI growth in April  are the faster drops posted in chemical and chemical products at -1.7 percent during the period from -0.05 percent in March, and basic metals at -4.9 percent in April 2023 from -3.4 percent in the previous month.

Coke and refined petroleum products also reported a bigger drop in April compared to March.

Aside from food, industry divisions which posted slower increases in April compared to March are beverages; fabricated metal products, except machinery and equipment; other non-metallic mineral products; rubber and plastic products; paper and paper products; tobacco products; wearing apparel; electrical equipment; printing and reproduction of recorded media; and textiles.

Meanwhile, those with higher growth rates in April compared to the previous month are computer, electronic and optical products; furniture; other manufacturing and repair and installation of machinery and equipment; leather and related products including footwear; and wood, bamboo, cane, rattan articles and related products.

Those with smaller declines in April compared to March are basic pharmaceutical products and pharmaceutical preparations; and transport equipment.

The machinery and equipment division, except the electrical industry posted the same growth rate in April and March.

The PPI tracks the changes in producer price of key commodities in the manufacturing sector. It is generated from the Producer Price Survey conducted nationwide.