Producers Price Index : January 2021

Reference Number: 2021-095
Release Date: 02 March 2021
 
 
Table A
 

 

Year-on-Year

The Producer Price Index (PPI) for manufacturing remained at downtrend with an annual rate of -5.3 percent in January 2021. This decrease was faster than the decline of -3.8 percent in December 2020. In January of the previous year, a negative growth was also observed with an annual rate of -3.5 percent.

The decline of PPI in January 2021 can be attributed to the annual decreases in the indices of 17 industry divisions led by manufacture of coke and refined petroleum products which posted an annual decrement of -27.5 percent. On the other hand, manufacture of tobacco products, with an annual increase of 3.4 percent, led the five industry divisions that recorded positive annual growth.  (Tables A-1, and 1)

Figure 1

 

Month-on-Month

Month-on-month, the PPI posted a decrement of -1.7 percent in January 2021, after a 0.9 percent increment in the previous month. In January 2020, the PPI decreased by -0.2 percent.  (Table A)

Nine industry divisions recorded negative monthly growth rates in January 2021 with manufacture of computer, electronic, and optical products posting the highest monthly decrement of -11.7 percent. On the other hand, PPI for nine industry divisions posted monthly increments, with manufacture of coke and refined petroleum products posting the highest monthly increment of 3.2 percent. Monthly growth rates of the rest of the industry divisions remained the same.  (Tables A-2 and 1)

Figure 2

 

Table A-1

 

Table A-2

 

 

 

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

 

Attachments:

1. Table 1. Producer Price Index (2018=100) Year-on-Year and Month-on-Month Growth Rates for Manufacturing Sector, January 2018 – JanuaryP
2. Table 2. Distribution of Samples and Responding Establishments by Major Industry Division: PPS, December 2020 and January 2021P
3. Technical Notes

 

 

 


 
 
Technical Notes
 
  • Introduction
Starting January 2021 reference period, the Producer Price Index (PPI) for Manufacturing uses 2018 as base year, from 2000 base period. The PPI for Manufacturing measures the changes in the producer price of key commodities produced by the Manufacturing sector. One of its uses is as a deflator to derive the Volume of Production Index (VoPI) and Volume of Net Sales Index (VoNSI).
 
The PPI for Manufacturing 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.
 
  • Method of Index Computation
The PPI utilizes the chained Paasche-type method of index computation where the base year is normalized. 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), whichever is the more recent. The weights are updated as soon as new results of the CPBI or ASPBI are available and these are applied at the beginning of each survey year.
 
For the 2021 PPI, the base year is 2018 and the weights of the industry divisions and industry groups were computed based on the final results of the 2018 CPBI for Manufacturing establishments with total employment of 20 and over.
 
The computation of PPI adopts the following formula:
 
Formula 1
Formula 2
 
 
 
Formula 3
 
Formula 3
  • Computation of Growth Rates

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.

 

  • Industry Coverage

Starting with the January 2013 reference month, PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry groups of the 2009 PSIC were grouped to form the 22 industry divisions of the 2021 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Manufacture of food products *

C11

Manufacture of beverages

C12

Manufacture of tobacco products

C13

Manufacture of Textiles

C14

Manufacture of wearing apparel

C15

Manufacture of leather and related products, including footwear

C16

Manufacture of wood, bamboo, cane, rattan articles, and related products products*

C17

Manufacture of paper and paper products

C18

Printing and reproduction of recorded media

C19

Manufacture of coke and refined petroleum products

C20

Manufacture of chemical and chemical products*

C21

Manufacture of basic pharmaceutical products and pharmaceutical preparations

C22

Manufacture of rubber and plastic products*

C23

Manufacture of other non-metallic mineral products*

C24

Manufacture of basic metals*

C25

Manufacture of fabricated metal products, except machinery and equipment*

C26

Manufacture of computer, electronic, and optical products*

C27

Manufacture of electrical equipment*

C28

Manufacture of machinery and equipment except electrical*

C29, C30

Manufacture of transport equipment*

C31 Manufacture of furniture
C32, C33 Other manufacturing

* - 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