Producers Price Index : December 2020

Reference Number: 2021-048
Release Date: 29 January 2021
Table A



The Producer Price Index for manufacturing remained at downtrend with an annual rate of -2.4 percent in December 2020. This decrease was slightly slower than the decline of -3.2 percent in November 2020. On the contrary, the PPI in December 2019 increased at an annual rate of 0.6 percent.

The decline in the PPI in December 2020 can be attributed to the negative growth rates of the indices of 14 industry groups led by paper and paper products, and petroleum products which posted annual decrements of -10.2 percent and -6.8 percent, respectively. In contrast, furniture and fixtures, which increased by 19.5 percent, led the six industry groups that recorded annual positive growth rates.  (Tables A-1, and 1)

Figure 1



Month-on-month, the PPI for manufacturing rose by 0.7 percent in December 2020, following a decrease of -0.6 percent in November 2020.  Meanwhile, the PPI posted a -0.2 percent monthly decrease last December 2019.  (Table A)

Twelve (12) industry groups recorded positive monthly growth rates in December 2020 with petroleum products posting the highest monthly increment of 6.8 percent. On the other hand, PPI for six industry groups posted monthly decrements with footwear and wearing apparel posting the highest monthly decrement of -0.4 percent, while the rest of the industry groups had the same zero monthly growth rate as in November 2020.  (Tables A-2 and 1)

Figure 2


Table A-1


Table A-2




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 from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.
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 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 these are applied at the beginning of each survey year.
For the 2020 PPI, the weights of the major industry groups and industry classes were computed based on the final results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over.
The computation of PPI adopts the following formula:
Formula 1
Formula 2
Formula 3


Starting with the January 2017 PPI, a link factor has been used to adjust weight effects to measure the correct price change.


  • 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.

  • Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but 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.


  • Industry Coverage

Starting with the 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 major industry groupings of the 2020 PPS. These are presented in the table below.




Food manufacturing *




Tobacco products



C14, C152

Footwear and wearing apparel


Leather products


Wood and wood products*


Paper and paper products




Petroleum products*

C20, C21

Chemical products*


Rubber and plastic products*


Non-metallic mineral products*


Basic Metals*


Fabricated metal products

C262, C275, C28, C263, C268

Machinery except electrical*

C261, C264, C27, C29301

Electrical machinery*

C29 except C29301, C30

Transport equipment


Furniture and fixtures

C265, C266, C267, C32

Miscellaneous manufactures

* - Industry groups categorized into industry classes



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


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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959