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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.

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"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.

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  • 2022-11-09 00:26:51

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