Factory gate prices accelerate in March

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May 1, 2026 | 12:00am

MANILA, Philippines — Producer prices rose at a faster pace in March from the previous month, driven mainly by refined petroleum products, according to the Philippine Statistics Authority (PSA).

Data from the PSA yesterday showed that the Producer Price Index (PPI) for manufacturing posted a faster increase of 2.5 percent in March compared to 1.4 percent in February.

It was also faster than the 0.8 percent uptick in March last year.

The PSA cited the manufacture of coke and refined petroleum products as the primary driver of the increase.

In particular, the industry division registered a faster 8.7 percent growth in March from 3.6 percent in February.

Coke and refined petroleum products contributed 49.4 percent to the faster annual growth rate of PPI for manufacturing in March.

Other main contributors to the faster PPI increase were the computer, electronic and optical products industry division and basic metals.

In particular, prices of computer, electronics and optical products rose by 5.3 percent in March from 3.4 percent in the previous month.

Prices of basic metals also registered a faster 4.3 percent increase in March from 3.2 percent in February.

Of the remaining 19 industry divisions, 15 exhibited annual increases in March. These are: food products; transport equipment; beverages; machinery and equipment except electrical; chemicals and chemical products; fabricated metal products, except machinery and equipment; tobacco products; wood, bamboo, cane, rattan articles and related products; furniture; basic pharmaceutical products and pharmaceutical preparations; wearing apparel; other manufacturing and repair and installation of machinery and equipment; textiles; leather and related products, including footwear and printing and reproduction of recorded media.

Meanwhile, four industry divisions registered annual declines in March such as rubber and plastic products; electrical equipment; paper and paper products and manufacture of other non-metallic mineral products.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said that the increase in PPI in March may already reflect the impact of the first month of the war in the Middle East.

“These inflation gauges could pick up further due to second-round inflation effects, similar to the acceleration seen about four years ago or during the Russia-Ukraine war in 2022, given the effects of the sharply higher oil, fuel or petroleum prices with similar effects on overall inflation, interest rates or monetary policy, as well as slower consumer and business spending,” he said.