Producer prices fall at faster pace in May

MANILA, Philippines — Factory gate prices declined at a faster rate in May from the previous month due mainly to the slower increase in prices of computer and electronic products, the Philippine Statistics Authority (PSA) said.

Preliminary data from the PSA showed the Producer Price Index (PPI) for manufacturing registered a faster contraction of 0.8 percent in May from the 0.6 percent decline in April.

In May last year, the PPI posted a 2.2–percent increase.

From January to May, the PPI contracted by 0.9 percent.

The PPI measures the average change in factory gate prices of locally made goods sold to wholesalers and/or other consumers in the domestic market relative to a base period.

It is generated from the Producer Price Survey conducted by the PSA.

“The faster annual decline of PPI in May, compared to its annual decrease in April, was primarily due to the deceleration in the annual growth rate of manufacture of computer, electronic and optical products industry division at 1.9 percent in May 2024 from four percent in April 2024,” the PSA said.

Computer, electronic and optical products contributed 75.3 percent to the decline in the PPI for manufacturing in May.

The PPA said the beverage industry was another main contributor to the faster PPI decline as the industry division posted a slower uptick of 3.4 percent in May from 4.1 percent in April.

Also contributing to the PPI downtrend was the non-metallic mineral products industry division, which registered a bigger decline of 2.6 percent in May from April’s 1.8 percent.

Aside from computer and electronic products and beverages, other industry divisions which posted positive growth rates in May are food products; transport equipment; tobacco products; wearing apparel; other manufacturing and repair and installation of machinery and equipment; printing and reproduction of recorded media; leather and related products including footwear; electrical equipment and basic pharmaceutical products and pharmaceutical preparations.