Decline in factory prices slower in June

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

Latest data from the PSA showed that the Producer Price Index (PPI) declined by 2.4 percent in June, slower than the 4.1 percent contraction in May.

This was also slower than the decline of 5.3 percent in June 2020.

The PSA attributed the decline to the negative growth rates in the indexes of nine industry groups led by computer, electronic and optical products, which went down by nearly 20 percent.

Other significant contractions were also noted in the manufacture of wood, bamboo, cane, rattan articles and related products, and furniture.

Meanwhile, 13 industry groups registered growth in June, with coke and refined petroleum products posting the fastest growth at 9.8 percent.

Others included basic metals, food products, beverages, chemical and chemical products, rubber and plastic products, textiles, electrical equipment, and fabricated metal 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.