Factory gate prices climb faster in May

MANILA, Philippines — Producer prices in May rose at their highest pace in over three years, driven mainly by the increase in prices of electronic products, according to the Philippine Statistics Authority (PSA).

Data showed that the Producer Price Index (PPI) for manufacturing posted a faster increase of 2.9 percent in May from the previous month’s 2.6 percent.

The May PPI growth is also the highest since it reached the same level in March 2023.

It also showed a turnaround from the 0.3-percent dip in the same month last year.

From January to May, PPI growth averaged 2.1 percent.

PPI tracks the change in prices of locally produced goods sold to wholesalers in the domestic market relative to a base period.

The PSA said the faster PPI growth rate was “primarily due to the faster annual increment in the PPI for manufacture of computer, electronic and optical products industry division at 5.9 percent in May 2026 from 4.4 percent in April 2026.”

Other main contributors to the faster PPI increase are basic metals and chemicals.

In particular, basic metals posted a higher price growth rate of 5.4 percent in May from the previous month’s 3.8 percent.

Prices of chemicals and chemical products also picked up at a faster pace of 3.9 percent in May from 3.2 percent in April.

Of the remaining 19 industry divisions, 16 registered increases in factory gate prices in May.

These are coke and refined petroleum products; food; transport equipment, beverages; other non-metallic mineral products, machinery and equipment, tobacco products, other manufacturing and repair and installation of machinery and equipment; wood, bamboo, cane, rattan articles and related products; fabricated metal products; rubber and plastic products; basic pharmaceutical products and pharmaceutical preparations; furniture; leather and related products, including footwear; apparel and printing and reproduction of recorded media.

On the other hand, three industry divisions saw declines during the period: electrical equipment, paper and paper products and textiles.