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Release Date :
Reference Number :
2012-016

Table A Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:    December 2011 and January 2012

Total Manufacturing       January 2012              December 2011       
      Producer Price Index              (2000=100) 169.0 165.7r
            Year-on-Year Growth 1.1 1.6r
            Month-on-Month Growth 2.0 0.3r

                                   r-revised

 

  • Producer Price Index increases

     

Producer Price Index (PPI, 2000=100) for the manufacturing sector increased at a slower rate of 1.1 percent in January 2012, according to the preliminary results of the monthly Producer Price Survey. This was brought about mainly by the double-digit increment posted by petroleum products (11.2%). The top four sectors that registered one-digit increases were the following: food manufacturing (9.1%) machinery except electrical (7.3%); rubber and plastic products (6.7%) and transport equipment (3.3%). On the other hand, eleven major sectors reflected decreases led by furniture and fixtures (-29.4%). Refer to Tables 1 and 1-B.

On a month-on-month basis, PPI accelerated to a 2.0 percent increase in January 2012 from 0.3 percent in December 2011. This can be attributed to the increments posted by nine major sectors with double-digit increases noted in furniture and fixtures (16.3%) and food manufacturing (11.9%). However, nine major sectors posted decreases led by wood and wood products (-8.9%). Refer to Tables 1 and 1-B.

Figure 1

Figure 2


 

                                                                 TECHNICAL NOTES

  • Introduction

    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.

    The PPI is the 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 Index (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 2012 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2009 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:

    Figure 1

    Figure 2

    Figure 3

    Figure 4

  • Industry Coverage

    The industry classification of the 2012 PPI utilizes the amended 1994 Philippine Standard Industry classification. There are 20 major sectors covered by the 2012 PPS with three consisting of subsectors.

     
    1994 PSIC CODE INDUSTRY DESCRIPTION
    15 except 155 Food Manufacturing
    155 Beverages
    16 Tobacco products
    17 Textiles
    18,174 and 192 Footwear and wearing apparel
    191 Leather products
    20 Wood and wood products
    21 Paper and paper products
    22 Publishing and printing
    23 Petroleum products
    24 Chemical products
    25 Rubber and plastic products*
    26 Non-metallic mineral products*
    27 Basic metals*
    28 Fabricated metal products
    29 and 30 Machinery except electrical
    31 and 32 Electrical machinery
    34 and 35 Transport equipment
    36 Furniture and fixtures
    33, 37 and 39 Miscellaneous manufactures

                                                   Note: * - Major sectors categorized into sub-sectors

  • Response Rate

    The response rate for January 2012 is 80.1 percent, which corresponds to the retrieval of 270 sample establishments' reports. Refer to Table 2.

    Table B Response Rates for Total Manufacturing
    (In percent)

              January 2012                      December 2011           
    (revised)
    80.1 92.8r

    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


    TABLE 1-A. PRODUCER PRICE INDEX, DECEMBER 2011 - JANUARY 2012
    (2000=100)

                                   Gainers                                    Year-on-Year Growth (percent)         
    January 2012 December 2011
    (revised)
     

    Petroleum Products

    11.2

    14.8

    Food Manufacturing

    9.1

    0.4

    Machinery Except Electrical

    7.3

    12.2

    Transport Equipment

    3.3

    3.5

    Rubber and Plastic Products

    6.7

    1.8

    Chemical Products

    0.9

    -2.0

    Beverages

    0.9

    -3.7

    Footwear and Wearing Apparel

    0.5

    -0.6

    Publishing and Printing

    0.0

    0.0

     
    Losers           Year-on-Year Growth (percent)          
    January 2012 December 2011
    (revised)
     

    Electrical Machinery

    -1.6

    2.8

    Miscellaneous Manufactures

    -12.6

    -11.8

    Furniture and Fixtures

    -29.4

    -50.3

    Fabricated Metal Products

    -5.8

    -5.8

    Basic Metals

    -1.6

    4.3

    Non-Metallic Mineral Products

    -3.2

    -4.0

    Wood and Wood Products

    -8.9

    0.1

    Leather Products

    -4.8

    0.1

    Paper and Paper Products

    -1.1

    8.0

    Tobacco Products

    -0.8

    4.7

    Textiles

    -0.6

    -1.7

    TABLE 1-B. PRODUCER PRICE INDEX, DECEMBER 2011 - JANUARY 2012
    (2000=100)

                                 Gainers                                        Month-on-Month Growth (percent)         
    January 2012 December 2011
    (revised)
     

    Food Manufacturing

    11.9

    -0.1

    Petroleum Products

    2.3

    0.1

    Rubber and Plastic Products

    9.0

    -0.7

    Chemical Products

    1.8

    0.9

    Furniture and Fixtures

    16.3

    -3.8

    Machinery Except Electrical

    0.8

    1.7

    Transport Equipment

    1.2

    0.7

    Non-Metallic Mineral Products

    0.7

    1.1

    Textiles

    1.9

    0.0

    Publishing and Printing

    0.0

    0.0

    Beverages

    0.0

    0.0

     
    Losers       Month-on-Month Growth (percent)      
    January 2012 December 2011
    (revised)
     

    Electrical Machinery

    -0.8

    0.3

    Wood and Wood Products

    -8.9

    0.0

    Paper and Paper Products

    -3.7

    1.2

    Basic Metals

    -0.6

    1.6

    Fabricated Metal Products

    -2.0

    0.0

    Leather Products

    -5.6

    0.6

    Miscellaneous Manufactures

    -1.1

    -1.7

    Footwear and Wearing Apparel

    -0.8

    0.2

    Tobacco Products

    -1.0

    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

     

    Source:   National Statistics Office
                     Manila, Philippines

 

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