Factory gate prices ease in February

MANILA, Philippines — Factory gate prices eased slightly in February after rising in January, led by declines in producer prices for wood and wood products, the Philippine Statistics Authority reported yesterday.

The Producer Price Index (PPI) for manufacturing grew at a slower pace of 3.6 percent in February from 3.8 percent in January.

Month-on-month, growth in the index eased to 0.04 percent in February from 5.3 percent in January as 11 major industry groups led by wood and wood products registered declines and eight industry groups registered increments.

Annual growth in the index was attributed to factory price growths in 13 major industry groups led by furniture and fixtures which posted the fastest growth of 46.1 percent.

Other industry groups that contributed to growth of the index were machinery except electrical, non-metallic mineral products, transport equipment, petroleum products, rubber and plastic products, tobacco products, electrical machinery, beverages, fabricated metal products, textiles, paper and paper products, and printing.

Contributing to the slower growth of the index, meanwhile, were declines in the factory gate prices of seven commodity groups led by wood and wood products that registered a decline of 7.7 percent in factory gate prices.

Other industry groups that reported declines in producer prices were food manufacturing, chemical products, basic metals, miscellaneous manufactures, footwear and wearing apparel, and leather products.

The Nikkei Manufacturing Purchasing Managers’ Index (PMI) for the domestic manufacturing sector in February also registered slower growth in selling prices amid relatively soft cost inflation.

Firms, however, still reported higher operating costs because of elevated prices for raw materials and gasoline.