Factory-gate price growth slowed slightly in April from a three-year high reached the previous month, although manufacturing costs remained elevated amid lingering energy-related pressures stemming from the prolonged war in the Middle East.

The Philippine Statistics Authority (PSA) reported on Friday, May 29, that the producer price index (PPI) for manufacturing—a measure of prices received by producers at the factory gate—rose by 2.4 percent year-on-year last month, slightly slower than the revised 2.6-percent increase recorded in March. The April reading was also well above the 0.2-percent increase posted a year ago.

The latest figure followed March’s three-year high growth rate, when higher oil prices at the onset of the Middle East war fueled a sharp increase in manufacturing costs.

The PSA attributed April’s slowdown mainly to a moderation in producer price growth for petroleum-related products. Prices in the manufacture of coke and refined petroleum products industry rose by 5.3 percent last April, easing from the 8.2-percent increase recorded last March. The industry accounted for 62.7 percent of the deceleration in overall manufacturing producer prices during the month.

Despite the slower increase, petroleum-related products continued to be among the biggest contributors to overall factory-gate price growth, underscoring the lingering impact of global oil market disruptions. The prolonged conflict in the Middle East has rattled energy markets, driving higher fuel costs and raising concerns over supply disruptions.

Also contributing to the slowdown were softer price increases in the manufacture of computer, electronic and optical products, which eased to 4.3 percent in April from 4.9 percent in March, and in the manufacture of basic metals, which slowed to 3.8 percent from 4.9 percent.

Among the 22 manufacturing industry divisions monitored by the PSA, 16 recorded annual increases in producer prices, while three posted annual declines.

The PSA said the largest contributors to the overall increase in manufacturing producer prices last month were the manufacture of computer, electronic and optical products, manufacture of coke and refined petroleum products, and manufacture of food products.

Food manufacturing prices accelerated slightly during the month, with producer prices in the manufacture of food products rising by 1.4 percent in April from 1.2 percent in March. The increase was largely driven by higher prices in the processing and preserving of fish, crustaceans and mollusks, which posted a 1.8-percent increase after a 2.3-percent decline a month ago.

On a month-on-month basis, however, factory-gate prices slipped by 0.1 percent in last April, reversing the 1.2-percent increase last March.

The latest PPI data came as the consumer price index (CPI) accelerated further in April, with headline inflation surging to a more than three-year high of 7.2 percent amid higher fuel and transport costs linked to the Middle East conflict.

Producer prices often serve as an early indicator of future consumer inflation. Sustained increases in manufacturers’ costs can eventually be passed on to households through higher retail prices.

During the first four months of 2026, factory-gate prices rose by an average of 1.9 percent year-on-year, PSA data showed.