Growth in factory-gate prices across the Philippines decelerated significantly in October 2025, according to the latest data from the national statistics agency released on Tuesday, December 2. The slowdown was primarily driven by weaker price gains in the crucial electronics sector, as well as in food and basic metals manufacturing.
Annual Growth Cools Across Key Sectors
The headline Producer Price Index (PPI), which tracks the average change in prices received by domestic producers for their output, increased by just 0.3 percent year-on-year in October 2025. This marks a notable easing from the 0.8 percent rise recorded in September and a reversal from the 0.4 percent decline seen in October 2024.
The most substantial drag came from the manufacture of computer, electronic, and optical products. This sector, which holds the second-highest weight in the overall index, saw its prices swing to an annual decline of one percent in October, down from a 0.6 percent increase the previous month. The statistics agency highlighted that this segment alone was responsible for 56.0 percent of the total slowdown in the PPI.
Other major sectors also contributed to the softer reading. Price increases in food manufacturing cooled to 0.4 percent from 0.7 percent in September, led by slower gains in vegetable and animal oils and fats. Similarly, basic metals saw its growth rate slow to 1.4 percent from 2.2 percent.
Monthly Rebound Driven by Petroleum and Transport
Despite the weaker annual figure, a month-on-month analysis reveals a different picture. The PPI rose by 0.4 percent from September to October 2025, a faster pace compared to the 0.1 percent monthly gain in the prior period.
This rebound was powered mainly by a sharp recovery in the manufacture of coke and refined petroleum products, which climbed 1.0 percent after a 1.9 percent drop in September. The transport equipment and electronics sectors also posted stronger monthly increases, with these three divisions jointly accounting for over 90 percent of the monthly pickup.
Food manufacturing inched up a marginal 0.04 percent month-on-month, supported largely by a 1.1 percent rise in the processing and preserving of fish, crustaceans, and mollusks.
Mixed Performance Across Industries
The report showed a mixed performance across the country's industrial landscape. Of the 22 industry divisions monitored, 12 posted annual price increases in October, while seven recorded declines and three remained stable. On a monthly basis, 12 divisions saw increases, four declined, and three were unchanged.
Even with the overall slowdown, three key sectors continued to provide support for the annual growth figure: the manufacture of coke and refined petroleum products, transport equipment, and basic metals.
Economists closely monitor the PPI as it can signal future trends in consumer inflation and reflects the cost pressures faced by local industries before goods reach the retail market. The October data suggests some easing of upstream price pressures in specific sectors, which could have implications for the broader inflation outlook in the coming months.
