27.08.2021 (www.thestar.com.my) - https://cdn.thestar.com.my/Content/Images/Digital_ach_2708_Producer_Price_Index.jpg

PETALING JAYA: Malaysia’s Producer Price Index (PPI) for local production increased 11.7% year-on-year (y-o-y) in July 2021, mainly supported by prices of primary commodities, namely, crude oil (64.4%), fresh fruit bunches (FFB) (57.3%) and crude palm oil (42.7%).

The PPI, which measures the costs of goods at the factory gate, rose 11.5% y-o-y in June 2021.

Chief statistician Datuk Seri Mohd Uzir Mahidin (pic below) said the growth was mainly contributed by the mining index, which jumped 57.7% y-o-y due to higher prices of natural gas and the continuous increase in crude oil commodity prices.

This was followed by the agriculture, forestry and fishing index which expanded 31.5% y-o-y (June 2021: 29.8%), attributed to the increase in prices of FFB and other commodities.

 “Meanwhile, the manufacturing index rose 7.1% y-o-y due to higher prices of primary commodities and construction-related commodities,” he said in a statement yesterday.

n terms of utility indices, Mohd Uzir said water supply as well as the electricity and gas supply indices improved by 1.3% y-o-y and 0.2% y-o-y, respectively.

On a month-on-month (m-o-m) basis, he said the PPI in July 2021 registered a marginal increase of 0.6% versus a 0.2% growth in the previous month.

“This positive growth was due to the mining index which grew 3.9% m-o-m, followed by the agriculture, forestry and fishing as well as the manufacturing indices which increased by 2.2% m-o-m and 0.2% m-o-m, respectively,” he said.

However, Mohd Uzir said both the electricity and gas supply as well as the water supply indices declined 0.2% m-o-m.

Meanwhile, he noted that the increase in the PPI local production by stage of processing was mainly due to the 35.8% y-o-y growth in the crude materials for further processing index.

“Similarly, the index of intermediate materials, supplies and components also increased 10.5% y-o-y.

“However, the index of finished goods registered a decrease of 0.4% y-o-y,” he said. ― Bernama