r-revised

Producer Price Index maintains its negative trend

The Producer Price Index (PPI, 2000=100) for the manufacturing industry decelerated at a slower rate of -3.6 percent in January 2011, according to the preliminary results of the monthly Producer Price Survey. This was attributed mainly to two major sectors namely: electrical machinery (-15.6%) and paper and paper products (-14.4%). However, increases in prices were observed in thirteen major sectors led by petroleum products (12.2%) and leather products (10.9%). Refer to Tables 1 and 1-A.

On a month-on month basis, PPI posted a 1.3 percent increase in January 2011, which is the same rate of increase during the previous month. The price increases were observed in 14 major sectors led by furniture and fixtures and rubber and plastic products that registered increments of 3.7% and 3.3% respectively. Refer to Tables 1 and 1-B.

• Response Rate
  

  The response rate for January 2011 is 80.7 percent, which corresponds to the retrieval of 259 sample establishments’ reports. Refer to Table 2.

  Response Rates for Total Manufacturing
  (In percent)

  January 2011	December 2010            (revised)
  80.7	91.9r

• Technical Notes
  

  The National Statistics Office generates various price indices, one of this is the Producer Price Index. (PPI). The PPI is generated through the results of the Producers Price Survey (PPS) conducted nationwide. The survey gathers monthly actual producer prices of selected products included in the market basket.

  PPI utilizes the Paasche-type method of index computation with weights computed from the production concentration ratio of the Census of Philippine Business and Industry (CPBI)/ Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI/CPBI are available and applied at the beginning of each survey year.

  Hence, the weights of the major sectors and sub-sectors for the 2009 PPI were computed from the results of the 2006 CPBI for Manufacturing Establishments of total employment of 20 and over, which is the latest census results.

  Moreover, for industry classification, the 2010 PPI utilizes the amended 1994 Philippine Standard Industry Classification. There are 20 major sectors covered by the 2010 PPS with three consisting of subsectors.

  Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

  (Sgd.) CARMELITA N. ERICTA                                                                                                                Administrator

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  TABLE 1-A. PRODUCER PRICE INDEX, DECEMBER 2010 - JANUARY 2011
  (2000=100)

  Gainers	Year-on-Year Growth (percent)
  	January 2011	December 2010 (revised)
  Petroleum Products	12.2	11.8
  Food Manufacturing	6.8	4.5
  Basic Metals	7.7	-1.5
  Rubber and Plastic Products*	8.3	0.8
  Footwear and Wearing Apparel	9.4	9.2
  Fabricated Metal Products	5.9	6.9
  Beverages	2.0	1.0
  Leather Products	10.9	11.9
  Chemical Products	0.6	-1.4
  Non-Metallic Mineral Products	1.0	1.2
  Tobacco Products	0.6	3.3
  Transport Equipment	0.2	0.6
  Textiles	7.6	2.4
  Wood and Wood Products	0.0	0.0
  Publishing and Printing	0.0	3.4
  Losers	Year-on-Year Growth (percent)
  	January 2011	December 2010 (revised)
  Electrical Machinery	-15.6	-17.6
  Machinery Except Electrical	-13.4	-19.9
  Paper and Paper Products	-14.4	-6.1
  Furniture and Fixtures	-9.8	-7.5
  Miscellaneous Manufactures	-2.8	-3.1

  TABLE 1-B. PRODUCER PRICE INDEX, DECEMBER 2010 - JANUARY 2011
  (2000=100)

  Gainers	Month-on-Month Growth (percent)
  	January 2011	December 2010 (revised)
  Chemical Products	0.9	-0.2
  Petroleum Products	2.2	3.6
  Machinery Except Electrical	2.2	2.5
  Miscellaneous Manufactures	0.7	-1.9
  Food Manufacturing	1.9	0.6
  Basic Metals	2.1	2.1
  Rubber and Plastic Products*	3.3	0.7
  Footwear and Wearing Apparel	1.9	0.0
  Beverages	1.3	0.0
  Furniture and Fixtures	3.7	4.0
  Fabricated Metal Products	1.1	0.0
  Textiles	0.2	1.3
  Wood and Wood Products	0.0	0.0
  Electrical Machinery	1.8	1.4
  Tobacco Products	0.4	0.0
  Transport Equipment	0.0	0.6
  Publishing and Printing	0.0	0.0
  Leather Products	0.0	0.0
  Losers	Month-on-Month Growth (percent)
  	January 2011	December 2010 (revised)
  Non-Metallic Mineral Products	-0.4	1.7
  Paper and Paper Products	-9.6	0.0

  Note:

  * - new sector in the 2000-based series

  Sectors are ranked according to their contribution to the overall 2000-based growth rate.

  Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.

  Month-on-month growth rates are computed by dividing the current month index by previous month index less 1

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  Source:   National Statistics Office
                   Manila, Philippines