Producers Price Index : July 2020

Reference Number: 2020-241
Release Date: 02 September 2020
 
 
Table A
 

 

Year-on-Year

The Producer Price Index (PPI, 2000=100) for manufacturing remained at a downward trend with an annual rate of -3.3 percent in July 2020. This decline was slower compared with the previous month’s annual rate of -3.9 percent. On the contrary, PPI increased at an annual rate of 0.7 percent in July 2019.

The decline in the PPI in July 2020 can be attributed to the decreases in the indices of 15 industry groups led by paper and paper products by posting a -10.7 percent decline. On the other hand, furniture and fixtures, which increased by 19.4 percent, led the five industry groups that posted annual increments. (Tables A-1 and 1)

Figure 1

 

Month-on-Month

Month-on-month, the PPI posted a slight decrement of -0.1 percent in July 2020, after a faster drop of -0.4 percent in the previous month. Moreover, the PPI also posted a -0.7 percent monthly decrease last July 2019.

Half of the 20 industry groups posted negative monthly growth rates in July 2020 which was led by machinery except electrical (-1.9%). On the other hand, PPI for eight industry groups registered positive monthly increments while indices for two industry groups exhibited zero monthly growth. (Tables A-2 and 1)

Figure 2

 

 

Table A-1
 
 

Table A-2

 

 

(Sgd.) DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

 
 
 
 
 

 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI is generated from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.
 
The PPI is used as a deflator of the Monthly Integrated Survey of Selected Industries (MISSI) to derive indicators for the Volume of Production Index (VoPI) and Volume of Net Sales (VoNSI).
 
  • Method of Index Computation
PPI utilizes the Paasche-type method of index computation. The weights are computed from the value of production from the Census of Philippine Business and Industry (CPBI) or Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI or CPBI are available and these are applied at the beginning of each survey year.
 
For the 2020 PPI, the weights of the major industry groups and industry classes were computed based on the final results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over.
 
The computation of PPI adopts the following formula:
 
Formula
 
Formula
 
Formula

Note:

Starting with the January 2017 PPI, a link factor has been used to adjust weight effects to measure the correct price change.

 

  • Computation of Growth Rates

Year-on-year growth rates are computed by dividing the current month index by the index in the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month index by the previous month’s index less 1.

 
  • Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but no received response during the release date. Results are revised accordingly when the actual data are received and these revisions are reflected in the next release.

 

  • Industry Coverage

Starting with the January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 major industry groupings of the 2020 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Food manufacturing *

C11

Beverages

C12

Tobacco products

C13

Textiles*

C14, C152

Footwear and wearing apparel

C151

Leather products

C16

Wood and wood products*

C17

Paper and paper products

C18

Printing

C19

Petroleum products*

C20, C21

Chemical products*

C22

Rubber and plastic products*

C23

Non-metallic mineral products*

C24

Basic Metals*

C25

Fabricated metal products

C262, C275, C28, C263, C268

Machinery except electrical*

C261, C264, C27, C29301

Electrical machinery*

C29 except C29301, C30

Transport equipment

C31

Furniture and fixtures

C265, C266, C267, C32

Miscellaneous manufactures

* - Industry groups categorized into industry classes

 

 

See more at the Producer Price Survey (PPS) main page.

 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959