FX.co ★ Philippines Producer Prices Fall in May

In May 2025, producer prices in the Philippines experienced a year-on-year decline of 0.4%, following a revised stagnation in April. This marked the first decline in producer prices since December 2024. The decrease was largely attributed to sharper cost reductions in the production sectors for computer, electronic, and optical products, which fell by 2.1% compared to a 1.3% drop in April, pharmaceuticals and pharmaceutical preparations, decreasing by 2.3% from a previous decline of 1.3%, and wearing apparel, down by 1.9% against a previous decrease of 0.5%. Furthermore, producer inflation decelerated in sectors such as machinery and equipment, excluding electrical, slowing to 0.5% from 1.2%, and other manufacturing, including the repair and installation of machinery and equipment, which eased to 0.6% from 1.8%. On the other hand, prices for coke and refined petroleum products saw an increase, rising by 4.4%, up from the previous 4%. On a monthly comparison, producer prices decreased by 0.1% in May, following a revised flat report for the preceding period.