Malaysia's PPI eases to 10.9% in June
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KUALA LUMPUR: The country's producer price index (PPI), which measures the prices of goods at factory gate, eased to 10.9% in June 2022 as compared to 11.2% in the previous month.
According to Datuk Mohd Uzir Mahidin, chief statistician at the National Statistics Department, all sectors in the country recorded a double-digit increase except for the utility sectors.
The manufacturing sector, which has an 81.6% weighting on the index, posted slower growth of 10% in June.
"Although the sub-sectors from this sector recorded a two-digit increase, the magnitude of increase has slowed down.
"Manufacture of coke & refined petroleum products recorded 22.3% in June 2022, down from 22.9% in May 2022.
"Similarly, manufacture of food products posted a slower increase to 18.6% in June 2022 from 19.3% recorded in the previous month.
"Manufacture of chemicals & chemical products also eased from 11.4% in May 2022 to 10.5% in June 2022," said Mohd Uzir in a statement.
In addition, 16 other sub-sectors posted a lower increase in the range of between 0.4% and 9.5%, while two sub-sectors recorded a decline and one sub-sector remained unchanged.
For the agriculture, forestry and fishing sector, Mohd Uzir said there was a slower increase of 18.1% as compared to 29.8% in the same month last year, despite the slight decrease in the price of crude palm oil to RM6,106 per tonne from RM6,873 a tonne in May.,
"Apart from being driven by perennial crops index, fishing and logging indices also contributed to the increase in this sector during June 2022.
"In addition, indices of growing of non-perennial crops and animal production increased 7.5% and 6.9% respectively," he said.
Meanwhile, the increase in the cost of natural gas and crude oil drove the mining index higher by 17.5% in June as opposed to 20.6% in May.
In utility indices, an increase of 2.1% was recorded in the water supply index, while the electricity and gas supply index decreased 0.2%.
ON the PPI local production by stage of processing, Mohd Uzir said the index of crude materials for further processing increased at a slower rate of 16.9% in June in comparison to 17.3% in May.
He said the increase was contributed by indices of Non-food materials (19.2%) and foodstuffs and feedstuffs (4.8%).
Similarly, the index of intermediate materials, supplies and components increased 13% in June 2022, slightly lower than 13.5% recorded inMay 2022.
The increase was driven by an increase in indices of processed fuel and lubricants (18%), materials and components for manufacturing (14.1%) and supplies (6.3%).
On the other hand, finished goods index registered a higher increase in June 2022 with 1.6% (May 2022: 1%), attributed by the increase in finished consumer foods (6.7%) index.