Factory prices rise slower in August

Factory gate prices recorded a slower growth in August from the previous month, even as most commodity groups posted annual increments, according to the Philippine Statistics Authority (PSA).

Preliminary data released by the PSA showed that the Producer Price Index (PPI) for manufacturing posted a slower annual growth rate of 7.3 percent in August from the eight percent expansion in July.

In August last year, the PPI slid by 0.4 percent.

“The increase in the PPI in August 2022 can be attributed to the annual increments in the indexes of 20 industry divisions,” the PSA said.

While 20 industry divisions posted positive growth rates in August, 14 of these had slower upticks compared to the previous month such as food products; coke and refined petroleum products; computer, electronic and optical products; non-metallic mineral products; basic metals; chemical and chemical products; rubber and plastic products; paper and paper products; tobacco products; textiles; electrical equipment; other manufacturing and repair and installation of machinery and equipment; basic pharmaceutical products and pharmaceutical preparations and leather and related products including footwear.

Those which saw faster growth in August compared to July are transport equipment; fabricated metal products, except machinery and equipment; furniture; and wood, bamboo, cane, rattan articles and related products.

Those which retained their previous month’s growth rates in August are beverages and wearing apparel.

On the other hand, two industry divisions registered contractions in August such as printing and reproduction of recorded media and machinery and equipment except electrical.

On a month-on-month basis, the PPI posted a negative growth rate of 0.2 percent in August compared with the 0.6 percent increment in July.

The PPI measures changes in the producer price of key commodities in the sector.

It is based from a survey conducted nationwide by gathering monthly producer prices of selected products included in the market basket of PPI from sample establishments.

The index is used as a deflator to derive the Volume of Production Index and Volume of Net Sales Index.