Factory gate prices grow slower in October

MANILA, Philippines — Factory gate prices rose at a slower pace in October from the previous month, even as most commodity groups posted increments, the Philippine Statistics Authority (PSA) said.

Preliminary data from the PSA released yesterday showed the Producer Price Index (PPI) for manufacturing registered a 7.2 percent growth in October, slower than  the 7.5 percent increase last September.

Compared to the 0.6 percent growth in October last year, the latest reading is much faster.

“The expansion in the PPI in October 2022 can be attributed to the annual upturns in the indices of 20 industry divisions,” the PSA said.

It said the manufacture of coke and refined petroleum products reported the biggest annual growth rate of 14.5 percent in October.

Food products came in second, reporting an annual increment of 9.5 percent in October.

Also posting positive growth rates in October are computer, electronic and optical products; transport equipment; beverages; chemical and chemical products; other non-metallic mineral products; rubber and plastic products; fabricated metal products except machinery and equipment; basic metals; paper and paper products; tobacco products; electrical equipment; other manufacturing and repair and installation of machinery and equipment; wearing apparel; wood, bamboo, cane, rattan articles and related products; textiles; furniture; leather and related products, including footwear; and basic pharmaceutical products and pharmaceutical preparations.

On the other hand, two commodity groups registered contractions in October.

In particular, machinery and equipment except electrical; and printing and reproduction of recorded media reported annual declines of 2.9 percent and 0.1 percent, respectively.

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

Results are based on a nationwide survey conducted to gather monthly producer prices of selected products in the market basket from sample establishments.