2. Processing and preserving of fish, crustaceans and mollusks was the main contributor to the slowdown in the annual increase of producer price for food manufacturing.

The PPI for the manufacture of food products continued to post a positive growth with an annual rate of 7.6 percent in December 2022. This was slower compared with the November 2022 annual growth rate of 8.1 percent, but faster relative to December 2021 annual increase of 2.2 percent. (Figure 2, Tables 1 and 2)

The deceleration in annual growth of the PPI for manufacture of food products in December 2022 from November 2022 was predominantly attributed by the slower annual increase in the index of processing and preserving of fish, crustaceans and mollusks industry group with11.2 percent annual increment in December 2022, from 16.2 percent in the previous month. Other primary contributors to the slower year-on-year growth of PPI for manufacture of food products were manufacture of vegetable and animal oils and fats with 0.2 percent annual increase during the month, from 2.5 percent in November 2022, and manufacture of grain mill products, starches and starch products with 13.4 percent annual upturn in December 2022, from 15.6 percent in the previous month. (Table 2)

B.  Month-on-Month Growth for December 2022

3. Manufacture of computer, electronic and optical products was the main driver to the monthly decline of producer price for manufacturing sector.

Month-on-month, the PPI for manufacturing posted a decrement of -0.9 percent in December 2022, which was the same monthly rate in November 2022. In December 2021, the PPI recorded a monthly increment of 0.2 percent. (Figure 3, and Tables A and 1)

The monthly decline of PPI in December 2022 was mostly contributed by the monthly decrease in the index of manufacture of computer, electronic and optical products of -2.9 percent. This industry division contributed more than half or 52.1 percent to the month-on-month growth rate of the manufacturing sector in December 2022. Completing the top three contributors were manufacture of coke and refined petroleum products, and manufacture of transport equipment with monthly drops of -1.8 percent and -1.3 percent, respectively. In addition, seven industry divisions exhibited month-on-month decrements in their indices during the month.

On the other hand, the PPI of nine industry divisions exhibited monthly increments during the period, with manufacture of machinery and equipment except electrical posting the largest increase at 0.9 percent. The monthly growth rates of three industry divisions, namely, manufacture of beverages, manufacture of leather and related products, including footwear, and manufacture of textiles were at 0.0 percent. (Tables C and 1)

4. Processing and preserving of fruits and vegetables was the main contributor to the monthly increment in the producer price for food manufacturing.

On a month-on-month basis, the PPI for the manufacture of food products recorded an increase with a monthly growth rate of 0.2 percent in December 2022, from a monthly decline of -0.9 percent in the previous month. In December 2021, the PPI for the manufacture of food products grew faster with a monthly increment of 0.7 percent. (Figure 4, Tables 1 and 2)

The monthly increase in PPI during the period was brought about by three of the eight industry groups of food manufacturing. This was led by the processing and preserving of fruits and vegetables, which registered a monthly growth rate of 3.0 percent, from a -4.7 percent monthly drop in the previous month. The processing and preserving of fruits and vegetables industry group contributed 64.1 percent to the month-on-month upturn of the PPI for the manufacture of food products.

Other contributors were manufacture of dairy products with 0.8 percent in December 2022, from a monthly decrement of -2.2 percent in the previous month, and manufacture of vegetable and animal oils and fats with monthly growth rate of 0.2 percent during the period, from -1.1 percent in November 2022.

On the contrary, the PPI of four industry groups under the manufacture of food products recorded monthly decreases in December 2022, with processing and preserving of fish, crustaceans and mollusks registering the fastest monthly drop of -3.6 percent. The monthly growth rate of processing and preserving of meat was at 0.0 percent. (Table 2)

C. Annual Average PPI and Growth Rates for 2022

The annual average growth rate of PPI in 2022 showed an expansion of 6.4 percent. In 2021 and 2020, annual average declines of -1.8 percent and -4.6 percent, respectively, were observed. (Table D)

The expansion in the annual average year-on-year growth of PPI in 2022 was mainly attributed by the upsurge in the annual average growth rate in the index of manufacture of computer, electronic and optical products of 2.8 percent, from -14.3 percent in 2021. Came second was manufacture of food products with faster annual average rate of 8.5 percent in December 2022, from 1.0 percent in the previous year. On third place was the manufacture of coke and refined petroleum products with accelerated annual average growth of 16.9 percent in 2022 from 5.1 percent in 2021. (Table 1)

Meanwhile, the upturn in the PPI for manufacture of food products in 2022 from 2021 was mainly contributed by the annual increases noted in the indices of manufacture of grain mill products, starches and starch products at 16.5 percent in 2022; manufacture of other food products, which includes bakery products, sugar, prepared meals, among others, 7.5 percent; and manufacture of prepared animal feeds, 13.2 percent. (Table 2)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

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

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

• Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but with no received response during the release date. Results are revised accordingly when the actual data are received, and these revisions are reflected in the next release.