The Producer Price Index declined in June 2023 from the previous month and a year ago, pulled down by lower computer and electronics production costs, the Philippine Statistics Authority said Tuesday.
PPI measures the average change over time in selling prices received by domestic producers of goods and services.
Data showed that the PPI posted an annual increase of 0.5 percent in June 2023, following a 2-percent annual increase in May 2023 and the 7.8-percent rise in June 2022.
“The slowdown of PPI in June 2023 was primarily brought about by the decline in the manufacture of computer, electronic and optical products industry division at 2.4 percent in June 2023 from 5.8 percent annual increase in May 2023,” the PSA said in a statement posted on its website.
The manufacture of computer, electronic and optical products contributed 39.7 percent to the slower annual growth rate of the PPI for manufacturing in June. Of the 22 industry divisions for manufacturing, this industry division had the second highest weight in the computation of PPI.
Other main contributors to the slower annual growth of PPI were manufacture of coke and refined petroleum products with a faster annual drop of -7.5 percent during the period from -4.2 percent in the previous month, and manufacture of food products with slower annual growth rate of 2.8 percent in June from 3.6 percent in May.
The PSA said of the remaining 19 industry divisions, seven exhibited annual decreases during the period. Meanwhile, 12 industry divisions registered annual increases, with the highest increment observed in the manufacture of beverages at 5.5 percent.
The top three industry divisions contributing to the June 2023 PPI for manufacturing were the manufacture of food products with 127.0 percent share; manufacture of beverages with 77.8 percent, and manufacture of computer, electronic and optical products with 70.6-percent share.
The PPI for the manufacture of food products posted an annual growth rate of 2.8 percent in June, slower than 3.6 percent in May and 10.3 percent a year ago.
The PSA attributed the deceleration in the annual growth of the PPI for food products to the slower annual increase in the manufacture of dairy products.
