Fish and grain products post price increases as factory gate prices rise 2.9% in May

Manufacturing-led gains push PPI higher, while food manufacturing shows mixed movements across key categories.

Factory gate prices in the Philippines rose 2.9% in May, reversing the 0.3% contraction recorded in the same month last year and accelerating from April’s 2.6% increase, according to the Philippine Statistics Authority (PSA).

On a month-on-month basis, the Producers Price Index (PPI) also expanded by 0.2%, improving from 0.02% growth in April and reversing the 0.1% contraction recorded a year earlier.

The uptick in factory gate prices was largely driven by manufacturing, particularly computer, electronic, and optical products, which posted a 5.9% increase and accounted for more than half of the overall acceleration.

Gains were also seen in basic metals, which rose 5.4% from 3.8%, and chemicals and chemical products, which increased 3.9% from 3.2%.

Out of 22 industry divisions, 16 recorded annual increases while three posted declines, the PSA said. The top contributors to overall growth were electronics, basic metals, and coke and refined petroleum products.

Factory gate prices sit at the production level of the supply chain, and sustained increases can lead to higher retail prices over time depending on demand conditions and supply chain pressures.

Food manufacturing showed a slower but steady pace of growth, with factory gate prices rising 1.3% in May. This was faster than the 0.4% increase recorded in the same month last year, but slightly lower than April’s 1.5% growth.

Within the food sector, price movements were mixed across key categories.

Oils and fats continued to weigh on the segment, recording a deeper 4.9% contraction compared with a 3.5% decline in April.

In contrast, fish, crustaceans, and mollusks posted stronger gains, rising 4.4% from 2.8% in the previous month. Other food products edged up 0.2%, while grain mill products, starches, and starch products returned to growth with a 0.1% increase after a slight decline in April.

Food manufacturing figures are often watched as early signals of potential shifts in consumer prices, as changes at the factory level move through the supply chain and can influence retail costs over time.

READ: