MALAYSIA’S Producer Price Index (PPI) declined by -2.3% in July 2023 (June: -4.8%), according to the Statistics Department Malaysia (DOSM) today. 

The PPI measures the prices of goods at the factory gate.

In a statement today, chief statistician Mohd Uzir Mahidin said the mining sector decreased by -10.8% (June: -16.6%), affected by the contraction in the extraction of crude petroleum index (-14.8%).

The manufacturing sector declined by -2.1%, dragged down by the manufacture of coke and refined petroleum products (-11.7%) and manufacture of food products (-8.9%).

“Meanwhile, the agriculture, forestry and fishing sector posted its first increase in 2023, rising by 3.6% after a double-digit decrease of - 20.4% in June, attributed to the increase in the indices of animal production (6.8%) and growing of perennial crops (1.2%).

“As for the utility sector, the water supply and electricity and gas supply indices went up 3.1% and 0.1%, respectively,” he said.

On a monthly basis, Uzir said the local production PPI increased marginally by 0.2% in July 2023 (June: -0.3%).

Month on month (m-o-m), the mining sector increased by 3.1% following the rise in the index of extraction of crude petroleum (4.2%), while the agriculture, forestry and fishing sector went up by 1% m-o-m as the index of growing of perennial crops posted an increase of 2.2% m-o-m, he said.

“On the other hand, the manufacturing sector index decreased by -0.2% m-o-m in July 2023. For the utility sector, the electricity and gas supply and water supply indices went down by -0.1% m-o-m and -0.3% m-o-m, respectively,” he said.

Commenting on the local production PPI by stage of processing, Uzir said the index for crude materials for further processing continued to decrease by -6.3% in July (June: -18.7%), with the non-food materials index falling to -8.7%.

The intermediate materials, supplies and components index also declined to -3.3% due to the decrease in processed fuel and lubricants (-7.1%) as well as materials and components for manufacturing (-6.2%) indices, he said.

Meanwhile, he pointed out that the finished goods index edged up 3.4%, attributed to the increase in capital equipment (4.7%) and finished consumer goods (1.7%).

On a monthly basis, he said both crude materials for further processing and finished goods indices increased by 1.9% m-o-m and 0.1% m-o-m, respectively, while the intermediate materials, supplies and components index went down by -0.4% m-o-m in July 2023. – Bernama, August 28, 2023.