July Factory Gate Prices Rise Slightly, Fueling Inflation Concerns

In July, factory gate prices in the Philippines experienced a modest acceleration, with the Producer Price Index (PPI) for manufacturing posting a 2.983 percent annual increase. This growth represents a slight uptick from the 2.980 percent recorded in June and contrasts with a 0.1 percent decrease observed in July of the previous year. The primary driver behind this increase was the manufacturing of coke and refined petroleum products, whose factory gate prices surged by 2.4 percent in July, up from 1.3 percent in June. This sector alone accounted for 69 percent of the PPI growth.

Other significant contributors to the rising PPI included computer, electronic, and optical products, which saw their producer prices climb to 5.8 percent from 5.6 percent. Additionally, the 'other manufacturing' and repair and installation of machinery and equipment sectors recorded a 3.2 percent increase, up from 2.4 percent in June. Out of nineteen industry divisions, seventeen reported positive PPI growth, including basic metals, transport equipment, and food products, while paper products and electrical equipment saw declines.