Producer prices in the Philippines rose by 4.3 percent year-on-year in January 2019, much faster than a downwardly revised 0.3 percent gain in December. It was the highest producer inflation since December 2008, amid increases in cost of electrical machinery (6.1 pct vs 7.6 pct in December); machinery except electrical (5.8 pct vs 12.6 pct); non-metallic mineral products (5.9 pct vs 8.1 pct); beverages (1.5 pct vs 14.2 pct); and fabricated metal products (1.3 pct vs 2.3 pct). In addition, cost rebounded for: transport equipment 93.6 pct vs -0.5 pct); and rubber & plastics (5.9 pct vs -2.9 pct). In contrast, there are falls in cost of petroleum products (-7.5 pct vs 9.2 pct); chemicals (-1.3 pct vs -0.3 pct); basic metals (-1.9 pct vs 0.1 pct); and wood & wood products (-4.5 pct vs -5.0 pct). On a monthly basis, producer prices went up 5.8 percent in January, after a 0.3 percent drop in December. Producer Prices Change in Philippines averaged 2.71 percent from 1999 until 2019, reaching an all time high of 17.50 percent in January of 2001 and a record low of -10 percent in March of 2013.
Producer Prices Change in Philippines is expected to be 1.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Philippines to stand at 0.50 in 12 months time. In the long-term, the Philippines Producer Prices Change is projected to trend around 0.30 percent in 2020, according to our econometric models.