The producer price inflation in the Philippines fell to 1.1 percent year-on-year in July 2019 from an upwardly revised 1.4 percent gain in the prior month. Prices eased for rubber & plastics (4.2% vs 5.2% in June) and beverages (2.9% vs 3.3%). Also, cost fell further for chemicals (-5.5% vs -4.9%); basic metals (-7.9% vs -6.4%); petroleum products (-2.9% vs -1.9%); electrical machinery (-5.1% vs -0.9%); fabricated metal products (-9.6% vs -8.4%); miscellaneous manufactures (-8.8% vs -7.3%); paper (-2.4% vs -1%) and textiles (-2.4% vs -1.6%). In contrast, prices rose at faster pace for both non-metallic mineral products (8% vs 7.6%) and furniture & fixture (64% vs 60.6%). Additionally, cost dropped less for transport equipment (-2.3% vs -2.5%); machinery except electrical (-1.9% vs -3.5%); footwear (-7.8% vs -9.9%); leather products (-12.5% vs -22.4%); and wood & wood products (-5.9% vs -7.1%). On a monthly basis, producer prices went down 0.4 percent, after a 0.2 percent fall in June. Producer Prices Change in Philippines averaged 2.69 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 1.80 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 2.50 in 12 months time. In the long-term, the Philippines Producer Prices Change is projected to trend around 3.30 percent in 2020, according to our econometric models.