THE producer price index (PPI) for manufacturing accelerated in May, data from the Philippine Statistics Authority (PSA) showed on Tuesday, reversing from last year’s decline and pointing to persistent cost pressures at the factory gate.
PPI measures the average change in selling prices received by domestic producers for their goods and services over time, an early indicator of inflation before it reaches consumers.
For manufacturing, PPI grew 2.9 percent year on year, up from 2.6 percent in April, and a sharp turnaround from the 0.3-percent contraction in May 2025.
Month on month, PPI rose 0.2 percent, compared with 0.02 percent in April and a 0.1-percent decline a year earlier.
The manufacture of computer, electronic and optical products — the index’s second-highest weighted division — drove much of the increase, with growth rising to 5.9 percent from 4.4 percent in April. The division accounted for 50.8 percent of the latest annual growth rate.
Basic metals manufacturing also picked up pace, growing 5.4 percent from 3.8 percent, while chemicals and chemical products rose 3.9 percent from 3.2 percent.
Of the remaining 19 manufacturing sectors, 16 expanded and three contracted, the PSA said.
Philippine Institute for Development Studies senior fellow John Paolo Rivera said the uptick reflects continued cost pressures from energy, fuel and other production inputs.
“While some global commodity prices have eased, firms are still feeling the effects of supply chain disruptions, forex (foreign exchange) rate movements and higher operating costs,” he said.
Rivera expects PPI to stay elevated but ease gradually if oil prices stabilize, supply chains normalize and inflation continues to slow. He flagged global energy markets and peso movements as key risks that could sustain production costs and eventually feed into consumer prices.
