Producer Price Index : January 2020

03 March 2020

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
January 2020, December 2019 and January 2019

TOTAL MANUFACTURING

January
2020
December
2019
January
2019

Producer Price Index (2000=100)

133.2

132.6 r

139.7

Year-on-Year Growth (%)

-4.7

0.4

4.1

Month-on-Month Growth (%)

0.4

-0.1

5.7
r -revised
 
  • Producer Price Index decreases in January 2020

The Producer Price Index (PPI, 2000=100) for manufacturing decreased at an annual rate of 4.7 percent in January 2020. This annual rate of the PPI was lower than its annual growth rate of 4.1 percent during the same period of the previous year. Furthermore, the annual rate in January 2020 was also lower than the annual growth rate of 0.4 percent in December 2019. The decline can be attributed to the decreases of 16 major industry groups with four major industry groups posting double-digit decrements namely: leather products (-16.3%), fabricated metal products (-13.8%), footwear and wearing apparel (-10.4%) and wood and wood products (-10.3%). On the other hand, furniture and fixtures, which climbed by 18.9 percent, led the four major industry groups that posted annual increases. Refer to Tables 1 and A-1.

Month-on-month, the PPI grew by 0.4 percent in January 2020, after a 0.1 percent drop in the previous month. Furniture and fixtures, which increased by 24.5 percent, led the 13 major industry groups that pulled-up the PPI in January 2020 while chemical products (-2.2%) led the seven major industry groups that posted decreases. Refer to Tables 1 and A-2.

 

Figure 1

 

Figure 2

 

TABLE A-1  Year-on-year Growth Rate (%) of Producer Price Index,
December 2019 and January 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

January 2020
December 2019

Gainers

 

 

Tobacco Products

7.5

3.7

Beverages

3.2

3.5

Furniture & Fixtures

18.9

62.2

Printing

2.4

0.0

Losers

 

 

Transport Equipment

-9.5

-4.9r

Electrical Machinery

-3.0

-5.3r

Chemical Products

-7.8

-10.8r

Machinery Except Electrical

-6.3

-5.6

Fabricated Metal Products

-13.8

-12.5r

Petroleum Products

-2.0

-1.3r

Food Manufacturing

-0.7

-1.4

Footwear & Wearing Apparel

-10.4

-11.8r

Wood & Wood Products

-10.3

-9.0r

Rubber & Plastic Products

-2.4

2.9r

Non-Metallic Mineral Products

-1.9

2.6

Basic Metals

-1.5

-5.2r

Leather Products

-16.3

-3.3r

Paper & Paper Products

-3.5

-3.9r

Textiles

-5.5

-2.8r

Miscellaneous Manufactures

-1.3

0.7

r - revised
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate
 
 
 
TABLE A-2  Month-on-month Growth Rate (%) of Producer Price Index,
December 2019 and January 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

January 2020
December 2019

Gainers

 

 

Electrical Machinery

2.7

-0.8r

Basic Metals

3.6

0.2r

Food Manufacturing

0.8

0.3r

Furniture & Fixtures

24.5

-1.2

Beverages

0.8

0.0

Miscellaneous Manufactures

1.1

-0.1

Leather Products

3.5

7.2r

Petroleum Products

0.2

0.8r

Printing

2.4

0.0

Tobacco Products

0.4

b/

Machinery Except Electrical

0.1

1.0

Textiles

0.5

b/

Footwear & Wearing Apparel

a/

-0.5r

Losers

 

 

Chemical Products

-2.2

0.2

Rubber & Plastic Products

-1.3

0.2r

Transport Equipment

-0.3

-1.4r

Non-Metallic Mineral Products

-0.5

-0.1

Paper & Paper Products

-0.5

-0.1r

Wood & Wood Products

-0.5

1.2r

Fabricated Metal Products

b/

0.5r

r - revised
a/ - Less than 0.05 percent increase
b/ - Less than 0.05 percent decrease
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate

 

 

 

CLAIRE 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 through the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products of establishments included in the market basket.
 
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 to derive concentration ratios 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 applied at the beginning of each survey year.
 
For the 2020 PPI, the weights of the major industry groups and industry sub-classes were computed based from the results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over, which is the latest survey results.
 
The formulas in the computation of the PPI are as follows:
 
Industry Class
Industry Class
Industry Class
Industry Class
 

 

  • 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.

 
 
Note:

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

           
  • 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

Note:  * - Major industry groups categorized into industry sub-classes

 

 

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

 

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