Factory gate prices climb at faster pace

MANILA, Philippines — Factory gate prices grew at a faster pace in September from the previous month, as most commodity groups registered annual growth.

Preliminary data from the Philippine Statistics Authority (PSA) showed the Producer Price Index (PPI) for manufacturing posted a 7.4 percent annual growth rate in September, faster than the 7.1 percent in August.

The latest reading is also faster than the 0.1 percent annual hike in September last year.

“The upturn in the PPI in September 2022 can be attributed to the annual expansions in the indices of 19 industry divisions,” the PSA said.

Of the 19 industry divisions, the manufacture of coke and refined petroleum products registered the highest annual growth rate of 15.2 percent in September.

Other industry divisions with positive growth rates in September are: food products; computer, electronic and optical products; beverages; transport equipment; non-metallic mineral products; chemical and chemical products; basic metals; rubber and plastic products; fabricated metal products except machinery and equipment; paper and paper products; electrical equipment; other manufacturing and repair and installation of machinery and equipment; tobacco products; textiles; furniture; wearing apparel; basic pharmaceutical products and pharmaceutical preparations and leather and related products, including footwear.

Meanwhile, three industry divisions had annual declines such as manufacture of machinery and equipment except electrical; printing and reproduction of recorded media and manufacture of wood, bamboo, cane, rattan articles and related products.

Month-on-month, the PPI for manufacturing registered a 0.8 percent growth in September, a turnaround from the 0.3 percent drop in August.

PPI measures changes in the producer price of key commodities in the manufacturing sector. The index is generated from a monthly survey on producer prices of selected products from sample establishments nationwide.