Factory gate prices up for 2nd straight month

Factory gate prices grew for the second month in a row in May at 1.4 percent year on year, faster than the revised 1.3 percent reported in April, according to the National Statistics Office.

The faster growth was attributed to the double-digit hikes in the prices of petroleum products and food manufacturing at 24.8 percent and 10.1 percent, respectively.

Results from the NSO’s latest monthly survey of factory-gate prices—which covered 20 selected groups of manufactured goods included in the producer price index (PPI)—showed that prices in 12 other groups gained while six others declined. One group showed no price change.

Those that had gained by a single digit were the prices of non-electrical machinery, tobacco products, transport equipment, rubber and plastic products, textiles, footwear and wearing apparel, fabricated metal products, nonmetallic mineral products, leather products, wood and wood products, and basic metals.

On the other hand, prices of furniture and fixtures continued to contract in double digits, this time settling at -32.2 percent. Other price losers in April were electrical machinery, beverages, miscellaneous manufactured items, paper and paper products, and chemicals.

The change in prices of publishing and printing settled at zero for the fourth month in a row.

On a month-on-month basis, the PPI posted an increase of 0.2 percent following three uninterrupted months of decline.

When compared with April prices, the groups that gained were non-electrical machinery, transport equipment, miscellaneous items, food, paper, chemicals, furniture and fixtures, basic metals, footwear and wearing apparel, rubber and plastic products, and nonmetallic minerals.

Losers included petroleum (-5.5 percent) and textiles (-1.3 percent).

Showing no prices changes were wood, electrical machinery, beverages, tobacco, publishing and printing, leather and fabricated metals.

Based on the NSO’s latest data, the growth in the value and volume of manufacturing output slowed down further in April at 4 percent compared with the level seen in March. It was 2.6 percent slower year on year.

In April, growth in value eased from 8.6 percent in March while growth in volume eased from 9.7 percent.