Producers Price Index : March 2021

Reference Number: 2021-168
Release Date: 30 April 2021
 
 
 

 

Year-on-Year

The Producer Price Index (PPI) for manufacturing was still at a downtrend with an annual rate of -3.1 percent in March 2021. This decrease was slower than the annual decline of -5.5 percent in February 2021. In March 2020, the PPI also registered an annual downturn rate of -5.9 percent. (Table A)

The contraction in the PPI in March 2021 can be attributed to the annual decreases in the indices of 15 industry divisions led by manufacture of computer, electronic, and optical products which posted an annual decrement of -17.2 percent.

On the other hand, manufacture of coke and refined petroleum products, with an annual increase of 3.0 percent, led the six industry divisions that recorded positive annual growths while printing and reproduction of recorded media registered a zero annual growth rate.  (Tables A-1, and 1)

 

Month-on-Month

Month-on-month, the PPI for manufacturing slightly fell by -0.04 percent in March 2021, following a slight increase of 0.05 percent in the previous month. In March 2020, the PPI decreased by -2.5 percent.  (Table A)

Nine industry divisions recorded negative monthly growth rates in March 2021 with manufacture of basic pharmaceutical products and pharmaceutical preparations posting the highest monthly decrement of -1.7 percent. On the other hand, the PPI of 11 industry divisions posted monthly increments, with manufacture of machinery and equipment except electrical posting the highest monthly increase of 1.6 percent. Monthly growth rates of the rest of the industry divisions remained the same at zero percent.  (Tables A-2 and 1)

 

 

 

 

 

(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 2020r – March 2021p
2. Table 2. Distribution of Samples and Responding Establishments by Major Industry Division: PPS, February 2021p, February 2021r and March 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 divisions categorized further into industry groups

 

 

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