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Producer prices declined at a slightly faster pace in October from the previous month due mainly to the slower increase in prices of food products, according to the Philippine Statistics Authority (PSA).
Data from the PSA released yesterday showed the Producer Price Index (PPI) for manufacturing registered a 0.3 percent contraction in October from a 0.2 percent decline in September.
In October last year, the PPI posted a 7.3 percent growth.
PPI measures the average change in the prices of products made by domestic manufacturers and sold at factory gate prices to wholesalers and/or other consumers in the domestic market relative to a base period.
The PSA attributed the faster decline in PPI primarily to the slower uptick in the food products industry division at 0.4 percent in October from 1.4 percent in September.
'Among the 22 industry divisions for manufacturing, manufacture of food products has the highest weight in the computation of PPI,' the PSA said.
It said food products contributed 62.2 percent to the decline of the PPI in October.
Also cited as a main contributor to the faster decline in PPI were coke and refined petroleum products industry division, which posted a bigger drop of 7.2 percent in October from a 6.5 percent contraction in the previous month.
The fabricated metal products, except machinery and equipment industry division, were also tagged as another major contributor to the faster PPI decline, registering a slower increase of 1.7 percent in October from 2.8 percent in September.
Of the remaining 19 industry divisions, 10 exhibited decreases in October such as transport equipment; chemical and chemical products; basic metals; wood, bamboo, cane, rattan articles and related products; other non-metallic mineral products; wearing apparel; electrical equipment; other manufacturing and repair and installation of machinery and equipment; machinery and equipment except electrical; and textiles.
Meanwhile, nine industry divisions registered positive growth rates in October, with the highest increase posted by beverages at 11.4 percent.
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