Producers Price Index : May 2021

Reference Number: 2021-254
Release Date: 30 June 2021
Table A



The Producer Price Index (PPI) for manufacturing remained at downtrend with annual rate of -4.3 percent in May 2021. This decrease was faster than the decline of -3.9 percent in April 2021. In May 2020, the PPI likewise dropped with an annual rate of -4.5 percent. (Table A)

The contraction in the PPI in May 2021 can be attributed to the annual decreases in the indices of 12 industry divisions led by manufacture of computer, electronic, and optical products which posted a double-digit annual decrement of -23.4 percent. On the other hand, manufacture of coke and refined petroleum products, with an annual increase of 7.3 percent, led the nine industry divisions that recorded positive annual growth rates. In addition, the annual growth rate of printing and reproduction of recorded media remained the same. (Tables A-1, and 1)

Figure 1




Month-on-month, the PPI also dropped at a monthly rate of -0.4 percent in May 2021, following a -0.8 percent decrease in April 2021. In May 2020, the PPI posted a monthly decrease at -0.1 percent.  (Table A)

Six industry divisions recorded negative monthly growth rates in May 2021 led by manufacture of computer, electronic, and optical products with monthly decrement of -4.5 percent. In contrast, the PPI of 14 industry divisions posted monthly increments, with manufacture of fabricated metal products, except machinery and equipment posting the highest monthly increase of 4.3 percent. The remaining two industry divisions namely: printing and reproduction of recorded media and manufacture of tobacco products had zero monthly growth rates.  (Tables A-2 and 1)

Figure 2



Table A-1


Table A-2




National Statistician and Civil Registrar General



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.




Manufacture of food products *


Manufacture of beverages


Manufacture of tobacco products


Manufacture of Textiles


Manufacture of wearing apparel


Manufacture of leather and related products, including footwear


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


Manufacture of paper and paper products


Printing and reproduction of recorded media


Manufacture of coke and refined petroleum products


Manufacture of chemical and chemical products*


Manufacture of basic pharmaceutical products and pharmaceutical preparations


Manufacture of rubber and plastic products*


Manufacture of other non-metallic mineral products*


Manufacture of basic metals*


Manufacture of fabricated metal products, except machinery and equipment*


Manufacture of computer, electronic, and optical products*


Manufacture of electrical equipment*


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



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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959