Factory gate prices climb in 2025

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Louella Desiderio - The Philippine Star

January 31, 2026 | 12:00am

Photo shows workers in a factory.

MANILA, Philippines — Producer prices increased in 2025, following a decline in the previous year, due mainly to higher prices of petroleum products, according to the Philippine Statistics Authority (PSA).

Data released by the PSA yesterday showed that the Producer Price Index (PPI) for the manufacturing sector grew by 0.5 percent in 2025, reversing the 0.7-percent decline in 2024. 

In 2023, the PPI posted an average growth of 1.4 percent. PPI tracks the change over time in factory gate prices relative to a base period. 

The PSA attributed the uptrend in the PPI’s average growth rate mainly to the upturn in coke and refined petroleum products’ prices at 4.3 percent last year from a 1.5-percent dip in 2024.

Also contributing to the uptrend in the average PPI growth were the increases in the manufacture of basic metals (1.3-percent growth in 2025 from a 0.1-percent dip in 2024) and chemicals and chemical products (0.8-percent growth from one-percent decline).

“These three industry divisions contributed 85.7 percent to the expansion in the annual average growth rate of PPI for manufacturing in 2025,” the PSA said.

In December last year, the PPI registered a faster increase of 0.9 percent from the previous month’s 0.1 percent.

The December 2025 PPI growth also improved from the 0.1-percent dip in the same month in 2024.

Driving the higher December 2025 PPI growth was the computer, electronic and optical products
industry division, which saw a 1.4-percent uptick from a 0.6-percent decline in November 2025.

Also contributing to the faster PPI growth in December 2025 were basic metals (3.1-percent growth from 0.8 percent in November 2025) and transport equipment (1.1-percent growth from a 0.2-percent decline).

Of the remaining 19 industry divisions, 10 registered increases in factory gate prices in December last year. These are coke and refined petroleum products; tobacco products; chemicals and chemical products; rubber and plastic products; other manufacturing and repair and installation of machinery and equipment; wearing apparel; electrical equipment; leather and related products, including footwear; furniture; and printing and reproduction of recorded media.

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