MANILA, Philippines — Factory gate prices registered an uptick in November alongside the rise in inflation during the month, the Philippine Statistics Authority (PSA) reported yesterday.
The Producer Price Index (PPI) for manufacturing rose 0.5 percent in November, a reversal of the 0.8 percent contraction in October and faster than the 0.4 percent growth in November 2018.
The growth in the index breaks the deceleration seen since September.
PSA attributed the uptick in November to the faster growth in the indexes of six major industry groups: furniture and fixtures, beverages, tobacco products, non-metallic mineral products, rubber and plastic products, and miscellaneous manufactures.
Flat growth was seen in the index of printing.
On the other hand, declines were seen in the indexes of food manufacturing, transport equipment, chemical products, basic metals, petroleum products, electrical machinery, machinery except electrical, fabricated metal products, footwear and wearing apparel, wood and wood products, leather products, paper and paper products, and textiles.
Month-on-month, growth in the PPI was still negative although elevated in November at 0.3 percent from negative 0.9 percent in October and negative 1.6 percent in November 2018.
Growth in the PPI for manufacturing tracks the acceleration of consumer prices in November to 1.3 percent from 0.8 percent in October, breaking a five-month slowdown.
During the period, increased demand for goods in line with the holiday season as well as the base effects of higher taxes on alcoholic beverages and tobacco were noted.
Chicken prices also remained high especially in Metro Manila as substitution for pork was still strong owing to the prevalence of African swine fever (ASF).