Growth in factory gate prices eased at the beginning of the year as most industry divisions registered slower increases, the Philippine Statistics Authority (PSA) said.
Preliminary data released by the PSA yesterday showed the Producer Price Index (PPI) for manufacturing posted a 4.2-percent growth in January, slower than the 5.1-percent increase in December 2022.
Compared to the four-percent uptick in January last year, the latest reading was slightly faster.
“The slower year-on-year growth rate of PPI in January 2023 compared with its annual growth rate in December 2022 was mainly brought about by the decline in the index of manufacture of transport equipment industry division with 0.8 percent annual decrease in January 2023 from 4.2 percent annual increase in December 2022,” the PSA said.
It said transport equipment contributed 41.4 percent to the slower growth rate of the PPI in January.
Also cited as primary contributors to the slower growth of PPI in January were the manufacture of food products, which had a 6.5-percent growth rate during the period from 7.7 percent in the previous month, and manufacture of chemical and chemical products with a 2.6-percent growth rate in January 2023 from 6.9 percent in December 2022.
In addition, the following had lower increases in January this year compared to December 2022: coke and refined petroleum products; rubber and plastic products; beverages; basic metal, other manufacturing and repair and installation of machinery and equipment; wood, bamboo, cane, rattan articles and related products; paper and paper products; leather and related products including footwear; wearing apparel; and textiles.
Those with higher growth rates in January this year compared to December last year are fabricated metal products, except machinery and equipment; machinery and equipment except electrical; computer, electronic and optical products; tobacco products; other non-metallic mineral products; furniture; electrical equipment; and printing and reproduction of recorded media.