Producer price index continues to decline in June

INQUIRER FILE PHOTO

MANILA – The producer price index (PPI) for manufacturing continued to decline in June this year but at a slower pace than the recorded contraction in May, the Philippine Statistics Authority (PSA) said.

Data released by the PSA on Tuesday showed the PPI last month declined by 0.1 percent from -0.8 percent in May.

“The slower annual decline of PPI in June 2024 compared with its annual drop in May 2024 was primarily due to the acceleration in the annual rate of the PPI for manufacture of computer, electronic and optical products industry division at 3.6 percent in June 2024 from 1.6 percent in May 2024,” it said.

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The PSA said the manufacture of computer, electronic and optical products contributed 49.1 percent to the slower decline in the annual rate of PPI for manufacturing in June.

Other contributors to the slower annual decline of PPI last month were the acceleration in the annual rate of manufacture of transport equipment at 2.8 percent from 1.6 percent increase in May, and the slower decline in the manufacture of basic metals at 0.02 percent from -0.7 percent a month earlier.

Month-on-month, the PPI for manufacturing registered a slight increase of 0.24 percent in June from a 0.21 percent increment in the previous month.

In June 2023, the PPI posted a 0.5 percent monthly decline.

“The top contributor to the faster increase in the monthly rate of PPI in June 2024 was manufacture of machinery and equipment except electrical, which registered a higher monthly increase of 2.2 percent during the period from a 0.2 percent increment in the previous month,” the PSA said.

The PPI is generated from the results of the Producer Price Survey, which is done nationwide.

It measures the average change over time in the prices of products or commodities produced by domestic manufacturers and sold at factory gate prices to wholesalers and/or other consumers in the domestic market. (PNA)