Factory prices fall at slower pace in March

MANILA, Philippines — Factory gate prices declined at a slower pace in March as decrements have been recorded in the majority of industry groups, the Philippine Statistics Authority (PSA) said.

Latest data from PSA showed that the Producer Price Index (PPI) declined by 3.1 percent in March, slower than the 5.5 percent contraction recorded in February.

It was also much slower than the decline of 5.9 percent in March 2020.

The PSA attributed the decline to the negative growth rates in the indexes of 15 industry groups led by computer, electronic and optical products which went down by more than 17 percent.

Other significant decrements were also noted in the manufacture of wearing apparel, paper and paper products as well as machinery and equipment.

Meanwhile, only six industry groups registered growth in March with coke and refined petroleum products posting the fastest growth at three percent.

Others were basic metals, food products, beverages, transport equipment and rubber and plastic products.

The PPI for manufacturing measures the changes in the producer price of key commodities produced by the sector. One of its uses is as a deflator to derive the Volume of Production Index and Volume of Net Sales Index.