PRICE GROWTH at the factory gate slowed in November, with transport equipment dragging down the overall index, according to the Philippine Statistics Authority (PSA), citing preliminary data.
The PSA said the Producer Price Index (PPI) for manufacturing grew 0.1% year on year in November, against the 0.5% year-earlier rate. November growth also slowed from the month-earlier rate of 0.5%.
PPI measures the average change in selling prices received by domestic producers for their manufactured goods, tracking inflation at the wholesale level.
“The deceleration in the annual growth rate of PPI for the manufacturing section in November was primarily due to the annual decline in the PPI for manufacture of transport equipment,” the PSA said in a statement on Tuesday.
The PPI for the manufacture of transport equipment slipped to 0.1% year on year in November after having risen 2.1% a year earlier.
“Among the 22 industry divisions for manufacturing, manufacture of transport equipment has the third-highest weight in the computation of PPI,” the PSA added.
Another contributor to the decline was the slowdown in price growth of food products to 0.1% year on year in November after having risen 2.4% a year earlier.
PPI growth was also dragged down by the sub-index for computer, electronic and optical products, which fell 0.5% in November compared to a 3.5% rise a year earlier.
“Of the remaining 19 industry divisions, ten exhibited annual increases, while nine industry divisions registered annual decreases during the period,” the PSA said.
Meanwhile, coke and refined petroleum products were the main driver on the upside of PPI growth for manufactured goods, rising 3.4% in November from 0.4% a year earlier.
Month on month, the PPI for manufacturing grew 0.2% in November, decelerating from the 0.6% rise in both October 2025 and November 2024.
“The top contributor to the slower monthly growth rate of PPI for manufacturing in November 2025 was the manufacture of computer, electronic and optical products, which registered a slower monthly increment of 0.4% during the period from 1.9% in October 2025,” the PSA said.
Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., told BusinessWorld via Viber that producer prices stayed soft throughout 2025 as global commodity costs stabilized and supply chains continued to normalize.
He said the slowdown in PPI growth to 0.1% in November points to weak pricing power and softer demand conditions, with the transport equipment sector weighing on the index.
“Petroleum products remain the main driver, but even that is losing steam as oil prices cool,” Mr. Ravelas added. “For manufacturers, the playbook is clear: keep prices competitive and focus on efficiency and value-added products rather than relying on price hikes.”
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld that while the slower PPI growth suggests easing cost pressures, it may also reflect a slowdown in industrial activity.
“It also hints at sluggish industrial activity and cautious business sentiment toward year-end. PPI growth may remain subdued unless manufacturing demand and export orders pick up alongside a stronger domestic recovery this 2026,” he said via Viber.
Meanwhile, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., told BusinessWorld that prices could pick up in December due to the seasonal increase in demand during the holidays, before easing again after the new year.
He said global oil prices and currency movements will shape producer price trends in the coming months.
“Going forward, (this will be) a function of global crude oil prices in view of geopolitical risks recently, as well as the peso exchange rate, with its effects on import costs,” Mr. Ricafort said via Viber.
He added that improved weather conditions heading into the dry season could also help keep prices subdued. — Vonn Andrei E. Villamiel
