The Producer Price Index (PPI) local production which measures the costs of goods at factory gate recorded a two-digit increase for the first time this year with 11.6 per cent in March 2022 as compared to 9.7 per cent posted in February 2022, Department Of Statistics Malaysia (DOSM) said
It said that the increase in the PPI local production in March 2022 was driven by the Mining index which rose 28.2 per cent as opposed to 23.3 per cent recorded in February 2022.
Index of Agriculture, forestry & fishing registered a higher increase of 24.9 per cent (February 2022: 17.7%) mainly led by an increase in indices of Growing of perennial crops (33.4%), Fishing (6.5%) and Animal production (5.5%).
Similarly, it said that the manufacturing index increased 8.9 per cent as compared to 7.9 per cent posted in February 2022, supported by an increase in indices of subsectors namely Manufacture of refined petroleum products (22.7%), Manufacture of vegetable & animal oils & fats (20.8%) and Manufacture of basic chemicals, fertilizers & nitrogen compounds, plastics & synthetic rubber in primary forms (13.3%).
In addition, the indices of Water supply and Electricity & gas supply increased 1.7 per cent and 0.2 per cent respectively.
In terms of month-on-month comparison, the PPI local production increased 2.4 per cent as against 2.0 per cent recorded in the previous month.
It said that the increase was driven by an 8.6 per cent increase in Agriculture, forestry & fishing index (February 2022: 6.9%), where it was underpinned by the higher price of Oil palm fresh fruit bunches (12.7%).
Meanwhile, prices of Crude oil and Natural gas continued to rise in March 2022, which led to a 5.0 per cent increase in Mining index.
It said that the manufacturing index also increased 1.5 per cent (February 2022: 1.3%), contributed by an increase in indices of subsectors namely Manufacture of vegetable & animal oils & fats (3.7%), Manufacture of refined petroleum products (2.9%) and Manufacture of electronic components & boards (0.5%). In addition, indices of Electricity & gas supply and Water supply each edged up 0.2 per cent and 0.1 per cent.
DOSMsaid that the index of Crude materials for further processing continued to post higher increase of 23.3 per cent in March 2022 in comparison to 17.7 per cent recorded in February 2022.
It said that the increase was contributed by indices of Non-food materials (27.1%) and Foodstuffs & feedstuffs (3.4%). Similarly, index of Intermediate materials, supplies & components increased 12.5 per cent (February 2022: 11.4%) driven by an increase in indices of Processed fuel & lubricants (20.1%), Materials & components for manufacturing (12.8%) and Materials & components for construction (4.6%). Finished goods index also registered an increase in March 2022 with 0.4 per cent, after posting a decline for eight consecutive months.
