PH Producer Price Index (PPI) Slows Down in September 2023

In a report by the Philippines Statistics Authority (PSA), the country’s Producer Price Index (PPI) in September 2023 has slowed down compared to August 2023 and September 2022.

The year-on-year growth in September 2023 for manufacturing showed an annual decline of 0.2 percent, compared to a 0.6% increase in August 2023 and a 7.7% growth in September 2022.

According to PSA’s report, the drop in the annual growth rate in September 2023 was mainly due to “the deceleration in the annual rate of manufacture of computer, electronic and optical products industry division at 0.02 percent in September 2023 from 2.8 percent in August 2023.”

Out of the 22 industries for manufacturing, the manufacture of computer, electronic, and optical products is the second highest weight in the computation of PPI.

Month-on-month, the manufacturing PPI showed a slowdown of 0.03% in September 2023, primarily affected by the monthly decline in the manufacture of computer, electronic, and optical products and a slower monthly growth rate in the manufacture of coke and refined petroleum products.

The food manufacturing PPI also showed a sluggish annual growth rate in September 2023 with only 2.1%, much slower than 2.7% in August 2023 and 9.2% in September 2023.

Month-on-month, the PPI for food products declined by 0.5 percent in September 2023, mainly due to a decline in the manufacture of grain mill products, starches, and starch products. Meanwhile, an acceleration in the monthly rate was observed in the processing and preserving of fruits and vegetables. (ASC)