Producer Price Index : April 2019

Reference Number: 

2019-084

Release Date: 

Thursday, May 30, 2019

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
April 2019, March 2019 and April 2018

TOTAL MANUFACTURING

April
2019
March
2019
April
2018

Producer Price Index (2000=100)

138.7

139.2 r

133.6

Year-on-Year Growth (%)

 3.8

4.5

0.7

Month-on-Month Growth (%)

-0.4

0.3

0.4
r -revised
 
  • Producer Price Index increases in April 2019

The Producer Price Index (PPI, 2000=100) for manufacturing continued to grow at an annual rate of 3.8 percent in April 2019. In March 2019, the annual growth rate was higher at 4.5 percent while lower in April 2018 at 0.7 percent compared with the PPI in April 2019. The increment can be attributed to the increases in the indices of 12 out of 20 major industry groups led by furniture and fixtures with an annual growth of 56.4 percent. The remaining eight industry groups led by basic metals with negative annual growth rate of 8.7 percent, posted single-digit decreases. Refer to Tables 1 and A-1.

Month-on-month, PPI descended by 0.4 percent in April 2019 compared with the previous month’s monthly rate of 0.3 percent. Fourteen major industry groups recorded negative growths led by wood and wood products with monthly growth rate of negative 2.8 percent. Moreover, PPI for three major industry groups posted monthly increments while three major industry groups remained the same. Refer to Tables 1 and A-2.

 

Figure 1

 

Figure 2

 

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

MAJOR INDUSTRY GROUP

April 2019
March 2019
(revised)

Gainers

 

 

Transport Equipment

5.0

4.8

Non-Metallic Mineral Products

9.5

10.3

Furniture & Fixtures

56.4

55.0

Rubber & Plastic Products

5.7

5.9

Tobacco Products

5.3

5.2

Machinery Except Electrical

2.3

1.0

Beverages

2.5

2.6

Fabricated Metal Products

3.1

6.1

Paper & Paper Products

3.6

5.1

Electrical Machinery

0.3

1.5

Printing

2.3

2.3

Leather Products

2.0

4.6

Losers

 

 

Food Manufacturing

-4.0

-3.6

Basic Metals

-8.0

-4.4

Chemical Products

-5.0

-5.1

Petroleum Products

-1.1

5.0

Miscellaneous Manufactures

-6.7

-4.9

Wood & Wood Products

-5.3

-1.8

Footwear & Wearing Apparel

-2.0

-1.6

Textiles

-3.5

-3.3

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,
March 2019 and April 2019
(2000=100)
 

MAJOR INDUSTRY GROUP

April 2019
March 2019
(revised)

Gainers

 

 

Machinery Except Electrical

0.7

-0.8

Transport Equipment

a/

1.0

Furniture & Fixtures

a/

-0.2

Tobacco Products

0.0

0.0

Printing

0.0

0.0

Beverages

0.0

0.0

Losers

 

 

Electrical Machinery

-0.9

1.0

Basic Metals

-1.7

1.2

Petroleum Products

-0.5

1.7

Non-Metallic Mineral Products

-0.9

-0.1

Wood & Wood Products

-2.8

2.3

Fabricated Metal Products

-1.2

2.5

Chemical Products

-0.4

-0.9

Miscellaneous Manufactures

-1.3

0.1

Paper & Paper Products

-0.8

b/

Leather Products

-1.6

2.0

Footwear & Wearing Apparel

-0.5

1.2

Rubber & Plastic Products

-0.2

-0.2

Textiles

-0.2

-5.8

Food Manufacturing

b/

-0.2

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 2019 PPI, the weights of the industry groups and sub-industry classes were computed based from the results of the 2015 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:
 
Formula 1
Formula 2
Formula 3
Formula 4
 

 

  • 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 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 industry groupings of the 2019 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 and reproduction of recorded media

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 sub-industry classes

 

 

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

 

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