Philippines Manufacturing Producer Prices Accelerate in December 2025, Fueled by Electronics and Metals
According to the latest data, producer prices in the Philippines' manufacturing sector experienced a notable acceleration in December 2025, primarily driven by significant increases in the costs of electronics, metals, and transport equipment. This marks a reversal from previous trends, highlighting shifting economic dynamics within the industrial landscape.
Annual Growth Reverses Previous Declines
The Producer Price Index (PPI) for manufacturing recorded a 0.9 percent year-on-year increase in December 2025, a substantial rise from the 0.1 percent growth observed in November. This performance effectively reversed the 0.1 percent annual decline that was recorded in December 2024, indicating a robust recovery in pricing pressures across the sector.
Key Drivers of Price Gains
The faster annual growth was largely attributed to higher prices in specific manufacturing divisions. Computer, electronic, and optical products saw prices rise by 1.4 percent in December, compared to a 0.6 percent decline in the previous month. This division accounted for a significant 46.1 percent of the overall increase in manufacturing PPI and holds the second-highest weight among the 22 manufacturing divisions.
Additionally, basic metals contributed strongly to the uptick, posting a 3.1 percent annual increase in December, up from 0.8 percent in November. Prices for transport equipment also turned positive, rising by 1.1 percent after a 0.2 percent decline previously. Of the remaining 19 manufacturing divisions, 10 recorded year-on-year increases, while nine posted annual declines.
Top Contributors to Overall PPI Growth
The primary contributors to the overall manufacturing PPI growth in December were coke and refined petroleum products, computer, electronic, and optical products, and basic metals. These sectors played a pivotal role in driving the index higher, reflecting broader industrial trends.
Food Manufacturing Prices Experience a Slight Decline
In contrast to the general upward trend, producer prices for food manufacturing fell by 0.1 percent year-on-year in December, reversing a 0.1 percent increase in November. This decline is notable when compared to the 1.8 percent rise recorded in December 2024.
The drop was linked to weaker prices in five of the eight food industry groups. Prepared animal feeds led the decline, with prices falling by 1.3 percent from a 0.4 percent decrease in November. This was partly offset by slower price declines in fish and seafood processing and grain mill and starch products. Meanwhile, prices for processed fruits and vegetables rose faster, increasing by 1.6 percent from 1.1 percent a month earlier.
Monthly Price Movements Show Modest Increase
On a month-on-month basis, the manufacturing PPI rose by 0.24 percent in December, slightly faster than the 0.19 percent gain in November. This followed a 0.6 percent monthly drop in December 2024.
Basic metals led the monthly increase, with prices up by 1.2 percent from 0.1 percent in November. Computer, electronic and optical products rose by 0.4 percent, while coke and refined petroleum products increased by 1.0 percent. Together, these divisions accounted for 87.4 percent of the monthly rise. Eight other divisions recorded monthly gains, five posted declines, and six showed no change.
Food manufacturing prices were largely unchanged, edging down by 0.001 percent for the month, reversing a 0.2 percent increase in November. The drop was mainly due to flat prices in processed fruits and vegetables after a strong increase in the previous month.
Annual Average PPI Shows Improvement in 2025
For the full year of 2025, the manufacturing PPI recorded an average growth of 0.5 percent, reversing the 0.7 percent decline experienced in 2024. This compares with a 1.4 percent increase in 2023, indicating a gradual recovery in pricing trends.
The improvement was largely driven by coke and refined petroleum products, which posted a 4.3 percent annual average increase after a decline in 2024. Basic metals and chemical products also supported the growth. However, average price growth in food manufacturing slowed in 2025, mainly due to a faster decline in grain mill and starch products compared with the previous year.
