NSCB Resolution No. 6
Series of 2008

ADOPTING THE 2000-BASED PRODUCER PRICE INDEX
FOR MANUFACTURING

WHEREAS, NSCB Resolution No. 6, series of 1991, mandates the rebasing of the price indices every five years;

WHEREAS, the Producer Price Index (PPI) for Manufacturing is one of the most important economic indicators designed to:  (1)  measure monthly or yearly changes in the producer's price of key commodities in the manufacturing sector;  and  (2)  serve as a deflator to the Value of Production Index (VaPI) in the estimation of the Volume of Production Index (VoPI), and in the estimation of gross value added of the manufacturing sector in the Philippine System of National Accounts (PSNA);

WHEREAS, the PPI for Manufacturing is still based on 1994 prices;

WHEREAS, the market basket of the PPI was that prevailing in 1994 and changes had taken place over a period of six years affecting the relevance of the basket;

WHEREAS, rebasing the PPI periodically is necessary since some of the items may no longer exist or are no longer produced in the market due to changes in technology or consumer taste and to ensure that this barometer of economic phenomena is truly reflective of the current situation;

WHEREAS, applying the same methodology used in rebasing the PPI to 1994, the National Statistics Office (NSO) has generated the 2000-based PPI using as data inputs, the results of the monthly Producer Price Survey, the 1997 to 1998 Annual Survey of Establishments (ASE), the 2000 Census of Philippine Business and Industry (CPBI) with 1999 as reference and the 2001 and 2003 Annual Survey of Philippine Business and Industry (ASPBI);

WHEREAS, the Technical Committee on Price Statistics (TCPS) in its meeting on 15 January 2008 recommended the adoption of the 2000-based PPI for Manufacturing as proposed by NSO;

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the Executive Board approve for adoption by all concerned agencies the 2000-based PPI for Manufacturing as recommended by the TCPS.

Approved this 11th day of June 2008, in Pasig City.

Attested by:

ROMULO A. VIROLA
Secretary General