The cost of manufacturing inputs in the Philippines increased for the fifth consecutive month, ending 2025 with a 0.9-percent rise in December 2025, the Philippine Statistics Authority (PSA) reported.

In a report released Friday, Jan. 30, the PSA said the year-on-year producer price index (PPI) for the manufacturing sector grew by 0.9 percent in December, accelerating from 0.1 percent in November 2025 and reversing the 0.1-percent contraction recorded in December 2024.

For the full-year 2025, PPI rose by 0.5 percent to 98.5, reversing the 0.7-percent decline recorded in the same period in 2024, when the index stood at 98.

On a month-on-month basis, the PSA said manufacturing PPI increased by 0.24 percent in December, up from 0.19 percent in November. In contrast, PPI for manufacturing recorded a 0.6-percent decline in December 2024.

PSA data showed that the manufacture of coke and refined petroleum products—up 4.3 percent in December from 3.4 percent in November—was the main contributor to the overall annual growth in PPI for manufactured goods.

The PSA added that the faster annual rise in manufacturing PPI in December was also driven by the computer, electronic, and optical products industry, which posted a 1.4-percent increase, reversing a 0.6-percent decline in November.

The sector accounted for 46.1 percent of the overall annual increase in manufacturing PPI for December. Among the 22 industry divisions, the manufacture of computer, electronic, and optical products carries the second-highest weight in PPI computation.

Other key contributors to the faster annual rise in manufacturing PPI in December, the PSA said, were the basic metals and transport equipment industries. The manufacture of basic metals posted a 3.1-percent increase, up from 0.8 percent in November, while the transport equipment sector reversed a 0.2-percent annual decline in November to record a 1.1-percent gain in December.

While 10 of the remaining 19 manufacturing industry divisions posted annual increases in December, the other nine recorded declines. These included the manufacture of other non-metallic mineral products, beverages, and food products, among others.

For the manufacture of food products, the PSA noted that year-on-year PPI slipped by 0.1 percent in December, reversing the 0.1-percent increase recorded in November. In comparison, the sector posted a 1.8-percent annual gain in December 2024.

The PSA said the slowdown in the annual growth of PPI for food manufacturing in December was driven by declines in five of the sector’s eight industry groups. This trend was led by the manufacture of prepared animal feeds, which fell by 1.3 percent in December, down from a 0.4-percent decrease in November.

Month-on-month, PPI for the manufacture of food products also declined by 0.001 percent in December, following a 0.2-percent increase in November. In December 2024, the sector recorded a 0.2-percent monthly gain.

The PSA said the slowdown in monthly PPI growth for food manufacturing in December was mainly due to the processing and preserving of fruits and vegetables, which recorded zero-percent month-on-month growth, down from a 1.1-percent increase in November. The industry group accounted for 59.4 percent of the monthly decline in PPI for the manufacture of food products.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), told Manila Bulletin that the rise in PPI may be linked to seasonal demand during the Christmas holiday period, which boosted manufacturing costs, as well as the relatively stronger United States (US) dollar against the peso in recent months, which raised import costs and contributed to higher producer prices.

“For the coming months, higher global crude oil prices at new four-month highs recently, as well as higher prices of some industrial metals and other global commodities amid recent geopolitical risks in Iran, Venezuela, Greenland, among others, could lead to some pickup in import costs and overall producer prices for manufacturers,” he added.