PPI for local production up 11.7% y-o-y in July 2021 — DOSM - MIDA | Malaysian Investment Development Authority
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PPI for local production up 11.7% y-o-y in July 2021 — DOSM

PPI for local production up 11.7% y-o-y in July 2021 — DOSM

26 Aug 2021

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 (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 Dr Mohd Uzir Mahidin 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 a 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%), attributable to an increase in prices of fresh fruit bunches 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 today.

In terms of the 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 by 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’s local production by stage of processing was mainly due to a 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. 

Source: Bernama