29.07.2021 (www.theedgemarkets.com) - KUALA LUMPUR (July 29): The Producer Price Index (PPI) for local production increased 11.5% year-on-year (y-o-y) in June 2021, marking the fifth consecutive month of an upward trend, the Department of Statistics Malaysia (DOSM) said.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the mining index increased 64.4% due to higher prices of natural gas, as well as a continuous increase for crude petroleum.

He said the index of agriculture, forestry and fishing inclined at a slower pace of 29.8% because of lower prices of crude palm oil (CPO) and livestock.

“In addition, the manufacturing index, which was influenced by a rise in prices of primary and construction-related commodities, also showed a significant increase of 6.7%,” he said in a statement today.

In terms of the utility indices, he said water supply rose 1.6%, while electricity and gas supply declined 0.2%.

On a monthly basis, Mohd Uzir said the PPI for local production registered a marginal increase of 0.2% in June 2021, compared with 1% in the previous month, in which the increase was supported by the indices of mining (8.2%) and manufacturing (0.8%).

However, the agriculture, forestry and fishing; electricity and gas supply; and water supply indices declined 10.5%, 0.8% and 0.2% respectively.

Meanwhile, he said the PPI for local production in the second quarter of 2021 (2Q21) rose 11.3% to 111.3 from 100.0 in the same quarter of the previous year.

The increase, Mohd Uzir said, was contributed by the index of mining (74%), agriculture, forestry and fishing (46%), manufacturing (5%) and water supply (1.4%), while that of electricity and gas supply declined 0.3%.

On a quarterly basis, he said the PPI for local production rose 2.6%, compared with 5.1% in 1Q21.

The DOSM also reported that the PPI for local production for all stages of processing recorded an increase in prices for June 2021.

“The index of crude materials for further processing increased 39.2%, compared with 53.6% in the previous month,” it said.

It also added that the index of intermediate materials, supplies and components also increased 9%, while the finished goods index edged up 0.3%.

https://www.theedgemarkets.com/article/ppi-local-production-115-yoy-june-%E2%80%94-dosm