Malaysia’s Producer Price Index (PPI) increased by 0.2 per cent in September 2023 as compared to a negative 2.2 per cent in August 2023.
The Department of Statistics Malaysia (DoSM), in its release today (Oct 26) entitled Producer Price Index-Local Production said the marginal increase was contributed by all sectors except the Manufacturing sector.
The Agriculture, forestry & fishing sector increased by 3.2 per cent (August 2023: -1.0%) due to the increase in Animal production (5.7%) and Growing of perennial crops (3.3%).
At the same time, the Mining sector increased by 6.9 per cent (August 2023: -3.8%) supported by Extraction of crude petroleum (8.1%).
Both utility sectors recorded incline, with the Electricity & gas supply sector increased 0.5 per cent and the Water supply increased by 0.9 per cent.
Meanwhile, the Manufacturing sector remained negative in five consecutive months recording a negative 0.8 per cent (August 2023: -2.3%) affected by Manufacture of coke & refined petroleum products (-7.1%) and Manufacture of food products (-5.3%).
On a monthly basis, PPI local production went up by 0.9 per cent in September 2023 (August 2023: 0.0%). The Mining sector increased by 5.6 per cent owing to Extraction of crude petroleum (6.6%) and Extraction of natural gas (1.9%) indices.
The Manufacturing sector increased slightly by 0.8 per cent after recording negative changes since May 2023, attributed to the Manufacture of refined petroleum products (6.1%).
Similarly, the Electricity & gas supply sector also inched up 0.4 per cent. However, the Agriculture, forestry & fishing sector declined by negative 1.4 per cent with the index of Growing of perennial crops posting a decrease of negative 2.3 per cent.
The Water supply sector also recorded a decrease of negative 0.4 per cent in this month.
In terms of PPI Local Production by stage of processing, the index of Crude materials for further processing index increased by 5.4 per cent in September 2023 (August 2023: -4.0%). The Intermediate materials, supplies & components index dropped by negative 2.7 per cent (August 2023: -3.7%), while the Finished goods index remained positive to post 3.1 per cent.
Crude materials for further processing, Intermediate materials, supplies & components and Finished goods indices increased by 3.9 per cent, 0.2 per cent and 0.1 per cent, respectively in September 2023.
The PPI Local Production continued to decline by negative 1.4 per cent in the third quarter of 2023 (Q2 2023: -4.1%). The decline was attributed to Mining (-2.8%) and Manufacturing (-1.7%) sectors.
On the contrary, the Agriculture, forestry and fishing increased by 2.0 per cent, and both Water supply and Electricity & gas supply sectors recorded increases of 2.3 per cent and 0.2 per cent, respectively.
However, a quarter-on-quarter comparison showed that PPI Local Production marginally inclined by 0.2 per cent (Q2 2023: -0.1%).
