Manila: The producer price index (PPI) for manufacturing saw a sharper annual decline of 0.4 percent in May, compared to a minimal decrease of 0.001 percent in April 2025.

According to Philippines News Agency, this accelerated decline was largely influenced by the more significant reduction in the annual growth rate of the PPI for the manufacture of computer, electronic, and optical products. This industry division experienced a 2.1 percent decrease in May 2025, a notable drop from the 1.3 percent decline recorded in April 2025.

Other factors contributing to the overall PPI decline included the annual decrease in the manufacture of transport equipment, which fell by 0.8 percent in May 2025 after a 0.5 percent increase in April. Additionally, the manufacture of basic metals witnessed a faster decline of 1.3 percent during the same period, following a 0.7 percent decrease in April 2025.

The PPI figures are derived from the Producer Price Survey (PPS), which is conducted nationwide by the Philippine Statistics Authority (PSA). This survey collects monthly producer prices from sample establishments within the manufacturing sector.

The PPI serves as a measure of the average change in prices over time for products or commodities produced by domestic manufacturers. These prices are assessed at factory gate levels and are relevant for wholesalers and other consumers in the domestic market, benchmarked against a base period.