Producer Price Survey : December 2018

Reference Number: 

2019-016

Release Date: 

Wednesday, January 30, 2019

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
December 2018, November 2018 and December 2017

TOTAL MANUFACTURING

December
2018
November
2018
December
2017

Producer Price Index (2000=100)

132.9

133.2 r

131.9

Year-on-Year Growth

 0.8

 0.8

-1.1

Month-on-Month Growth

-0.2

 -0.1

-0.2
r -revised
 
  • Producer Price Index slightly increases in December 2018

The Producer Price Index (PPI, 2000=100) for manufacturing slightly increased at a rate of 0.8 percent in December 2018, from a negative growth rate of 1.1 percent during the same period of previous year. The upturn can be attributed to the increases of 13 out of 20 major industry groups led by beverages with 14.2 percent annual growth. On the other hand, leather products with negative annual growth rate of 17.2 percent led the seven industry groups that posted decreases. Refer to Tables 1 and A-1.

Month-on-month, PPI slightly descended by 0.2 percent from the previous month’s rate of negative 1.0 percent with eight major industry groups recording negative growths. Moreover, nine major industry groups posted increments while three major industry groups reflected flat growths. Refer to Tables 1 and A-2.

 

Figure 1

 

Figure 2

 

 
TABLE A-1  Year-on-year Growth Rate (%) of Producer Price Index,
November 2018 and December 2018:
(2000=100)
 

INDUSTRY GROUP

December 2018
November 2018
(revised)

Gainers

 

 

Petroleum Products

9.0

12.9

Electrical Machinery

7.5

7.0

Machinery Except Electrical

12.6

10.4

Beverages

14.2

14.2

Tobacco Products

13.7

19.7

Non-Metallic Mineral Products

8.2

7.7

Paper & Paper Products

4.8

2.4

Footwear & Wearing Apparel

4.1

1.6

Basic Metals

0.9

5.9

Textiles

4.0

6.5

Printing

4.3

4.3

Fabricated Metal Products

1.1

0.2

Miscellaneous Manufactures

0.1

-1.8

Losers

 

 

Transport Equipment

-0.9

-0.3

Rubber & Plastic Products

-2.9

-3.0

Leather Products

-17.2

-6.7

Furniture & Fixtures

-7.1

-7.9

Wood & Wood Products

-4.8

-3.1

Chemical Products

-0.2

-1.2

Food Manufacturing

b/

0.1

b/ - Less than 0.05 percent decrease
 
Note:
1) Industry groups are ranked according to their contribution to the overall 2000-based growth rate
 
 
 
 
TABLE A-2   Month-on-month Growth Rate (%) of Producer Price Index,
November 2018 and December 2018:
(2000=100)
 

INDUSTRY GROUP

December 2018
November 2018
(revised)

Gainers

 

 

Machinery Except Electrical

1.5

0.9

Electrical Machinery

0.2

-1.5

Miscellaneous Manufactures

1.4

-1.4

Paper & Paper Products

0.9

0.1

Fabricated Metal Products

0.4

-0.4

Footwear & Wearing Apparel

0.6

-0.2

Non-Metallic Mineral Products

0.2

-1.8

Furniture & Fixtures

0.4

-1.5

Rubber & Plastic Products

a/

0.4

Beverages

0.0

a/

Tobacco Products

0.0

a/

Printing

0.0

0.0

Losers

 

 

Petroleum Products

-2.8

-4.1

Basic Metals

-4.6

0.8

Transport Equipment

-0.6

-1.7

Leather Products

-12.1

-0.1

Textiles

-2.5

0.7

Wood & Wood Products

-1.7

1.0

Food Manufacturing

b/

-0.6

Chemical Products

b/

0.3

a/ - Less than 0.05 percent increase
b/ - Less than 0.05 percent decrease
 
Notes:
1) Industry groups are ranked according to their contribution to the overall 2000-based growth rate

 

 

 
FOR THE NATIONAL STATISTICIAN:

 

 

JOSIE B. PEREZ
Assistant Secretary
(Deputy National Statistician)
Officer-in-Charge

 
 
 
 
 

 
 
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 2018 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2014 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
 
 
           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 2018 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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