2. Manufacture of grain mill products, starches and starch products was the main contributor to the slowdown in the annual increase of producer price index for food manufacturing

The PPI for the manufacture of food products posted an annual rate of 6.3 percent in February 2023. This was slower compared with its annual growth rates in January 2023 and February 2022 at 6.5 percent and 6.7 percent, respectively.  (Figure 2, Tables 1 and 2)

The deceleration in the annual growth of the PPI for the manufacture of food products in February 2023 from January 2023 was primarily attributed to the lower annual increase in the index of manufacture of grain mill products, starches and starch products industry group with 5.2 percent annual increment in February 2023 from 8.5 percent in the previous month. In addition, slowdowns in the annual growth rates were observed in the indices of two industry groups of manufacture of food products during the month. Moreover, two industry groups of manufacture of food products exhibited faster annual decreases in February 2023 than in the past month.

On the contrary, there were three industry groups that registered higher annual growth rates in February 2023 than in January 2023, led by manufacture of prepared animal feeds with 14.2 percent annual increase during the month from 13.3 percent in January 2023.  (Table 2)

B.  Month-on-Month Growth for February 2023

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

Month-on-month, the PPI for manufacturing posted a decrement of -0.02 percent in February 2023, after exhibiting a 0.3 percent monthly growth rate in January 2023. In February 2022, the PPI posted a monthly increase of 0.7 percent.  (Figure 3, and Tables A and 1)

The monthly decrement of PPI in February 2023 was mainly contributed by the lower monthly growth rate in the index of manufacture of computer, electronic and optical products at 0.3 percent. This industry division contributed 31.3 percent to the downtrend in the monthly growth rate of the PPI for manufacturing sector in February 2023. Completing the top three contributors were manufacture of coke and refined petroleum products and manufacture of fabricated metal products, except machinery and equipment, which posted monthly rates of -1.9 percent and 0.5 percent, respectively.

In addition, three industry divisions exhibited slowdowns in their month-on-month growth rates, while the indices of nine industry divisions recorded monthly declines during the period after posting monthly increments in January 2023.

On the other hand, manufacture of food products and manufacture of textiles registered higher monthly increments in February 2023 than in the previous month. Meanwhile, manufacture of wood, bamboo, cane, rattan articles and related products and manufacture of basic pharmaceutical products and pharmaceutical preparations posted positive month-on-month growth rates during the period after exhibiting negative monthly rates in January 2023.

Lastly, three industry divisions continued to record negative monthly rates during the period but at a slower pace as compared with the previous month. The manufacture of chemical and chemical products registered the fastest monthly drop of -0.5 percent during the period from -2.3 percent in January 2023.  (Tables C and 1)

4. Manufacture of vegetable and animal oils and fats was the primary contributor to the monthly increase in the producer price index for food manufacturing

Month-on-month, the PPI for the manufacture of food products posted an increase of 0.6 percent in February 2023 from 0.4 percent in the previous month. In February 2022, the PPI for the manufacture of food products grew with a monthly increment of 0.9 percent. (Figure 4, Tables 1 and 2)

The monthly increase in the PPI for food manufacturing during the period was brought about by five of the eight industry groups. This was led by manufacture of vegetable and animal oils and fats, which posted a monthly growth rate of 0.5 percent from a -0.5 percent monthly drop in January 2023. This industry group contributed 29.1 percent to the month-on-month upturn of the PPI for the manufacture of food products. Other contributors to the upturn were the following:

a. Processing and preserving of fish, crustaceans and mollusks, 2.8 percent from 1.8 percent in January 2023; 
b. Manufacture of dairy products, 0.9 percent from 0.1 percent in the previous month; 
c. Processing and preserving of fruits and vegetables, 0.2 percent from -0.3 percent in the past month; and 
d. Manufacture of grain mill products, starches and starch products, 0.03 percent from -0.3 percent in January 2023.

On the other hand, a slowdown was recorded in the PPI of manufacture of prepared animal feeds with 1.8 percent during the month from 2.5 percent in the past month. Meanwhile, the PPI for manufacture of other food products, which includes bakery products, sugar, and condiments, among others, retained its monthly growth rate in January 2023 at 0.3 percent.

Lastly, the monthly growth rate of processing and preserving of meat was recorded at 0.0 percent in February 2023.  (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.