MANILA – Factory gate prices in the Philippines grew at a subdued pace in November 2025, reflecting ongoing cost pressures and weak demand in some sectors. According to the latest Producer Price Index (PPI) data released by the Philippine Statistics Authority (PSA) on January 6, 2026, the PPI for manufacturing rose by 1.3% year-on-year — slower than the 2.1% growth recorded in October 2025 and well below the 4.8% average seen earlier in the year.
Key Highlights from the November PPI Report
- Overall PPI Growth: +1.3% YoY (vs. +2.1% in October).
- Major Contributors:
- Food manufacturing continued to drive the increase (+3.8% YoY), supported by higher costs of raw materials like sugar and vegetable oils.
- Beverages posted modest growth (+1.5% YoY).
- Coke and refined petroleum products saw a slowdown (+0.8% YoY), influenced by stabilizing global oil prices.
- Month-on-Month: PPI declined by 0.2% in November, indicating short-term deflationary pressure in some sub-sectors.
- Sector Breakdown:
- Food and beverages remained the main drivers of inflation.
- Non-metallic mineral products and textiles showed flat or negative growth.
The slower price growth aligns with the broader manufacturing slowdown (factory output contracted 1.5% in November) and the S&P Global Manufacturing PMI dropping to a four-year low of 47.4 in November, signaling weak demand and output contraction.
Implications for 2026
- Lower Input Costs → Could ease pressure on manufacturers and help keep consumer prices stable.
- Weak Demand → Limits ability to pass on costs, squeezing margins.
- Inflation Outlook → Supports the BSP’s view of continued low inflation (projected 2-3% for 2026), potentially allowing room for further monetary easing.
The PSA data reinforces the narrative of a cooling but resilient manufacturing sector as the Philippines enters 2026.
PPI Growth Trend (Recent Months):
| Month | YoY Growth | MoM Change | Key Driver |
|---|---|---|---|
| October 2025 | +2.1% | +0.4% | Food & beverages |
| November 2025 | +1.3% | -0.2% | Slower food growth; petroleum easing |