Factory prices pick up further in March

MANILA, Philippines — Factory gate prices continued their upward trend in March 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 March accelerated by five percent, faster than the 4.2-percent expansion in February.

The index slipped  by 3.3 percent in the same period last year.

On a month-on-month basis, the PPI still went up at 0.7 percent, slightly faster than the 0.6 percent increment in February.

The PSA attributed the upturn to the annual increases in the indexes of 18 industry groups led by the manufacture of coke and refined petroleum products, which went up 17.9 percent.

Other significant increments were also noted in the manufacture of basic metals, chemical and chemical products, food products  and rubber and plastic products.

Growth was likewise recorded in the manufacture of beverages, non-metallic mineral products, paper and paper products, electrical equipment, fabricated metal products, transport equipment, tobacco products, wearing apparel, furniture, leather products, basic pharmaceutical products and textiles.

Meanwhile, four industry groups registered contractions in March with wood, bamboo, cane, rattan articles and related products posting the biggest decline at 6.6 percent.

Others were computer, electronic and optical products, machinery and equipment and printing and reproduction of media.

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.

The PPI has been using 2018 as a base year from the previously used 2000 base period.