Philippines producer prices in December were again tempered, extending a trend of moderation in the series that started in mid-2023, according to Philippine Statistics Authority (PSA) figures released Friday.

The Philippines producer price index (PPI) rose a modest 0.2% in December from a year earlier, and declined 0.2% from November, reported the PSA.

The Philippines PPI tracks prices of goods produced by domestic manufacturers and sold at the factory gate, generally in bulk transactions with wholesalers or retail chains.

The PPI is distinct from the consumer price index (CPI), that gauges prices at retail, experienced by ordinary shoppers. However, the PPI is considered one leading indicator of later movements in the CPI, as retailers try to recoup costs or pass on savings to shoppers.

Of 22 PPI industrial categories, seven experienced on-year price declines in December, reported the PSA.

Producer prices for the manufacture of metal products, excluding machinery and equipment, fell 3.4% on year.

On the upside, the PPI for the category of computer, electric and optical products rose 4.1% on year in December, added the PSA.

The Philippines PPI heated up during the pandemic era, striking a peak high of 8.2% on year in July of 2022.

From that crest, the rate of inflation indicated by the index declined steadily for most of the next 12 months, and in August 2023 was basically flat on year.

Through the rest of 2023 and 2024, the Philippines PPI has indicated only mild inflation on year, and even deflation in some months.

For the full year 2024, the Philippines PPI declined 0.7% on year, added the PSA.