Year-on-Year
The Producer Price Index for manufacturing remained at downtrend with an annual rate of -2.4 percent in December 2020. This decrease was slightly slower than the decline of -3.2 percent in November 2020. On the contrary, the PPI in December 2019 increased at an annual rate of 0.6 percent.
The decline in the PPI in December 2020 can be attributed to the negative growth rates of the indices of 14 industry groups led by paper and paper products, and petroleum products which posted annual decrements of -10.2 percent and -6.8 percent, respectively. In contrast, furniture and fixtures, which increased by 19.5 percent, led the six industry groups that recorded annual positive growth rates. (Tables A-1, and 1)
Month-on-Month
Month-on-month, the PPI for manufacturing rose by 0.7 percent in December 2020, following a decrease of -0.6 percent in November 2020. Meanwhile, the PPI posted a -0.2 percent monthly decrease last December 2019. (Table A)
Twelve (12) industry groups recorded positive monthly growth rates in December 2020 with petroleum products posting the highest monthly increment of 6.8 percent. On the other hand, PPI for six industry groups posted monthly decrements with footwear and wearing apparel posting the highest monthly decrement of -0.4 percent, while the rest of the industry groups had the same zero monthly growth rate as in November 2020. (Tables A-2 and 1)
DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
- Introduction
- Method of Index Computation
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.