Malaysia’s Producer Price Index which measures the prices of goods at factory gate eased further to record 4.9 per cent increase in September 2022 as compared to 6.8 per cent recorded in August 2022.
The increase was attributed by Manufacturing index with 8.1 per cent (August 2022: 9.4%), supported by increases in indices of Manufacture of refined petroleum products (19.3%), Manufacture of vegetable & animal oils & fats (8.6%), Manufacture of electronic components & boards (7.8%) and Manufacture of basic chemicals, fertilisers & nitrogen compounds, plastics & synthetic rubber in primary form (6.3%) subsectors.
The increase was offset by a decline in the index of Agriculture, forestry & fishing (-15.5%). On the other hand, Mining index remained unchanged as in the same month of the previous year.
The Index was released today (Oct 28) by the Department of Statistics Malaysia (DOSM) in its Producer Price Index Malaysia September 2022 report.
For a monthly comparison, PPI Local Production posted a decline for four consecutive months to record negative 1.4 per cent in September 2022 (August 2022: -0.2%). All sectors recorded a decline except for Water supply index that rose 1.1 per cent.
The index of Agriculture, forestry & fishing fell negative 5.3 per cent and was followed by the indices of Mining (-4.9%), Manufacturing (-0.7%) and Electricity & gas supply (-0.2%).
In addition, PPI Local Production recorded an increase of 6.5 per cent in the third quarter of 2022, down from 11.1 per cent posted in the second quarter of 2022.
The increase was supported by the indices of Manufacturing (9.1%), Mining (4.9%), Water supply (3.1%) and Electricity & gas supply (0.9%). However, the incline was also offset by a decrease of negative 12.1 per cent posted by Agriculture, forestry & fishing index. Meanwhile, PPI Local Production fell negative 2.6 per cent in the third quarter of 2022 (Q2 2022: 3.3%) on a quarter-on-quarter basis.
In terms of PPI Local Production by stage of processing, Crude materials for further processing index continued to decline with negative 6.4 per cent in September 2022 (August 2022: -0.5%). Furthermore, Intermediate materials, supplies & components index increased 10.0 per cent (August 2022: 11.3%) while Finished goods index edged up 3.1 per cent.
For a monthly comparison, the index of Crude materials for further processing declined by negative 5.4 per cent, followed by Intermediate materials, supplies & components index (-0.8%).
However, Finished goods index increased 0.2 per cent.