Factory gate prices pick up further

MANILA, Philippines — Factory gate prices grew at a faster pace in June, with annual increases seen in nearly all industry groups, according to the Philippine Statistics Authority.

PSA data showed the Producer Price Index posted an annual growth rate of 7.2 percent in June, quicker than the seven percent in May.  In June last year, the PPI slid by 1.4 percent.

“The year-on-year increase in the PPI in June 2022 can be attributed to the annual expansions in the indices of 21 industry divisions,” the PSA said.

Posting the biggest annual growth among the 21 industry divisions is the manufacture of coke and refined petroleum products at 22.1 percent.

Other industry divisions with positive growth rates in June this year were food products; basic metals; computer, electronic and optical products; chemical and chemical products; beverages; transport equipment; non-metallic mineral products; transport equipment; rubber and plastic products; paper and paper products; wearing apparel as well as machinery and equipment except electrical.

Other sectors booking improvements include electrical equipment, tobacco products, fabricated metal products except machinery and equipment, furniture, other manufacturing and repair and installation of machinery and equipment, textiles, basic pharmaceutical products and preparations, leather and related products including footwear, and printing and reproduction of recorded media.

On the other hand, only wood, bamboo, cane, rattan articles and related products registered an annual decline of 3.4 percent in June.

Month-on-month, the PPI went up 0.9 percent in June, faster than the 0.5 percent increment in May.

The PPI measures the changes in the producer price of key commodities in the manufacturing sector.

The index is based on the results of the producer price survey conducted nationwide, which gathers the monthly producer prices of selected products in the market basket of PPI from sample establishments.

Among the PPI’s uses is as a deflator to derive the Volume of Production Index and the Volume of Net Sales Index.