Factory gate price growth slows in October

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December 3, 2025 | 12:00am

MANILA, Philippines — Manufacturers’ prices registered a slower increase in October compared to the previous month, but the higher demand for the Christmas season and recent typhoons may drive up prices for the remainder of the year.

Preliminary data released by the Philippine Statistics Authority (PSA) yesterday showed that the Producer Price Index (PPI) for manufacturing rose at a slower pace of 0.3 percent in October from 0.8 percent in the previous month.

The October PPI growth also reversed the 0.4 percent dip in the same month last year.

The latest PPI result brought the average in the January to October period to 0.4 percent.

The PPI measures the average change in the price of manufactured goods when they leave the production plant relative to a base period.

The PSA attributed the slower PPI increase mainly to the one percent drop in prices of computer, electronic and optical products in October from the 0.6 percent uptick in September.

The slower PPI growth was also driven by the lower increases in factory gate prices of food products (0.4 percent in October from 0.7 percent in the previous month) and in basic metals (1.4 percent from 2.2 percent).

The PSA said 12 other industry divisions registered increases in factory gate prices in October such as coke and refined petroleum products; transport equipment; chemical and chemical products; tobacco products; rubber and plastic products; leather and related products including footwear; wearing apparel; furniture; printing and reproduction of recorded media; electrical equipment; textiles; and other manufacturing and repair and installation of machinery and equipment.

On the other hand, seven posted declines in producer prices in October such as other non-metallic mineral products; machinery and equipment except electrical; beverages; fabricated metal products except machinery and equipment; basic pharmaceutical products and pharmaceutical preparations; paper and paper products; and wood, bamboo, cane, rattan articles and related products.

While producer prices posted a slower increase in October from the previous month, Rizal Commercial Banking Corp. chief economist Michael Ricafort said stronger demand during the Christmas season may lead to higher factory gate prices.

“For the coming months, local prices could seasonally pick up during the Christmas holiday season amid higher demand or spending by consumers in what is considered the seasonal increase or peak in spending or demand in a typical year,” he said.

He said recent typhoons are also expected to lead to higher prices until supply chains normalize.

Earlier this week, S&P Global reported that the Philippines’ purchasing managers’ index (PMI), which tracks the performance of the manufacturing sector, slid to 47.4 in November from the previous month’s reading of 50.1.

The November PMI reading is also the lowest in over four years or since August 2021.

Federation of Philippine Industries chair Elizabeth Lee said the recent decline in PMI shows the challenges faced by the manufacturing sector from weaker demand, lower export orders and weather-related disruptions.

She said corruption controversies also undermine investor confidence, leading to a delay in expansion plans and higher financing costs.

Despite these challenges, she said the umbrella group of producers in the country is encouraged by the government’s push for reforms.

“The government’s decisive campaign against corruption is the tough but necessary remedy and with proper reforms and the strict implementation of it, we are confident it will deliver lasting benefits – restoring fairness for businesses and rebuilding trust among consumers,” she said.