FX.co ★ Philippines Producer Inflation Hits 10-Month High

In December 2025, producer prices in the Philippines experienced a year-on-year increase of 0.9%, up from 0.1% in November. This was the most significant rise since February, predominantly driven by a recovery in the prices associated with the manufacture of computer, electronic, and optical products, which surged to 1.4% from a decrease of 0.6% in the previous month. This sector accounted for 46.1% of the annual growth in the manufacturing Producer Price Index (PPI). Costs also saw a recovery in the areas of transport equipment, which rose to 1.1% from a decline of 0.2%, as well as other manufacturing, and the repair and installation of machinery and equipment, which increased to 0.5% from a fall of 0.7%. Concurrently, inflation rose for basic metals with a percentage change from 0.8% to 3.1%, and for coke and refined petroleum products, which climbed from 3.4% to 4.3%. Moreover, the deflation rates lessened for beverages, moving from -0.7% to -0.6%, paper and paper products shifting from -1.7% to -1.6%, and basic pharmaceutical products and preparations from -1.7% to -0.2%. However, prices for food products saw a slight decline from a 0.1% increase to a decrease of 0.1%. On a monthly scale, producer inflation remained steady at 0.2% in December.