THE producer price index (PPI) for manufacturing rose at a slower pace in June, the Philippine Statistics Authority (PSA) reported on Thursday, but the rate still marks a turnaround from last year’s decline.
The PPI tracks changes in the prices producers receive for their goods and services, an early signal of where consumer inflation may be headed.
For manufacturing, PPI grew 3.0 percent year on year in June, a bit slower than May’s 3.1 percent, but a clear reversal from the 0.2-percent decline in June 2025.
Month on month, PPI was slower at 0.2 percent than the 0.3-percent pace in May, but matched the 0.2 percent a year earlier.
The manufacture of coke and refined petroleum products — the fourth-largest division in the index by weight — was the biggest drag on growth, slowing to 2.4 percent from 3.0 percent in May. This division alone accounted for 33.9 percent of the latest annual growth rate.
Growth in the manufacture of computer, electronic, and optical products also dropped, slipping to 5.6 percent from 5.9 percent the previous month.
The manufacture of basic metals, likewise, slowed to 5.5 percent from 5.9 percent in May.
Among the remaining 19 manufacturing sectors, 16 posted growth while three saw declines, the PSA said.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the data suggests inflation pressures are easing on the production side, which could minimize concerns about price pressures building up before reaching consumers.
He added that this gives the Bangko Sentral ng Pilipinas (BSP) more flexibility to focus on supporting economic growth, while still keeping watch over risks from abroad.
