Factory prices decline at faster pace in August

MANILA, Philippines — Factory gate prices declined at a slightly faster pace in August as increments 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) for August declined 1.8 percent, a bit faster than the 1.7 percent contraction level in July.

However, this is slower than the decline of 5.1 percent in August 2020.

The PSA attributed the decline to the contraction rates in the indexes of eight industry groups led by the manufacture of wood, bamboo, cane, rattan articles and related products which went down 25.3 percent.

Other significant drops were also noted in the manufacture of computer, electronic, and optical products, and furniture.

Meanwhile, 14 industry groups registered growth in August, with coke and refined petroleum products posting the fastest growth at 15.1 percent.

Others were basic metals, food products, chemical and chemical products, rubber and plastic products, textiles, and electrical equipment, among others.

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.