Producer prices in the manufacturing sector rose faster in December, driven mainly by higher prices for electronics, metals, and transport equipment, according to latest data.
The Producer Price Index (PPI) for manufacturing increased by 0.9 percent year on year in December 2025, up from 0.1 percent in November. This reversed the 0.1 percent annual decline recorded in December 2024.
Electronics and metals drive price gains
The faster annual growth was largely due to higher prices for computer, electronic, and optical products. Prices in this group rose by 1.4 percent in December, compared with a 0.6 percent decline a month earlier. The sector accounted for 46.1 percent of the increase in manufacturing PPI and has the second-highest weight among 22 manufacturing divisions.
Basic metals also contributed strongly, posting a 3.1 percent annual increase in December from 0.8 percent in November. Prices for transport equipment turned positive, rising by 1.1 percent after a 0.2 percent decline previously.
Of the remaining 19 manufacturing divisions, 10 recorded year-on-year increases, while nine posted annual declines.
Petroleum products lead overall PPI growth
The top contributors to overall manufacturing PPI growth in December were coke and refined petroleum products, computer, electronic and optical products, and basic metals.
Food manufacturing prices slip
In contrast, producer prices for food manufacturing fell by 0.1 percent year on year in December, reversing a 0.1 percent increase in November. In December 2024, food manufacturing prices had risen by 1.8 percent.
The decline was linked to weaker prices in five of eight food industry groups. Prepared animal feeds led the drop, with prices falling by 1.3 percent from a 0.4 percent decline in November.
This was partly offset by slower price declines in fish and seafood processing, as well as grain mill and starch products. Prices for processed fruits and vegetables rose faster, increasing by 1.6 percent from 1.1 percent a month earlier.
Monthly prices post modest increase
On a month-on-month basis, manufacturing PPI rose by 0.24 percent in December, slightly faster than the 0.19 percent gain in November. This followed a 0.6 percent monthly drop in December 2024.
Basic metals led the monthly increase, with prices up by 1.2 percent from 0.1 percent in November. Computer, electronic and optical products rose by 0.4 percent, while coke and refined petroleum products increased by 1.0 percent. Together, these accounted for 87.4 percent of the monthly rise.
Eight other divisions recorded monthly gains, five posted declines, and six showed no change.
Food manufacturing prices edged down by 0.001 percent for the month, reversing a 0.2 percent increase in November. The drop was mainly due to flat prices in processed fruits and vegetables after a strong increase in the previous month.
Annual average PPI improves in 2025
For full-year 2025, the manufacturing PPI recorded an average growth of 0.5 percent, reversing the 0.7 percent decline in 2024. This compares with a 1.4 percent increase in 2023.
The improvement was largely driven by coke and refined petroleum products, which posted a 4.3 percent annual average increase after a decline in 2024. Basic metals and chemical products also supported the growth.
However, average price growth in food manufacturing slowed in 2025, mainly due to a faster decline in grain mill and starch products compared with the previous year. / KOC