KUALA LUMPUR, Aug 28 — Malaysia’s producer price index (PPI) declined to -2.3 per cent in July 2023 (June: -4.8 per cent), according to the Department of Statistics Malaysia (DoSM) today.

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

In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said the mining sector decreased by -10.8 per cent (June 2023: -16.6 per cent), affected by the contraction in the extraction of crude petroleum index (-14.8 per cent).

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

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

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

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

Month-on-month (m-o-m), the mining sector increased by 3.1 per cent following the rise in the index of extraction of crude petroleum (4.2 per cent); while the agriculture, forestry and fishing sector went up by 1.0 per cent m-o-m as the index of growing of perennial crops posted an increase of 2.2 per cent m-o-m, he said.

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

Commenting on the local production PPI by stage of processing, Mohd Uzir said the index for crude materials for further processing continued to decrease by -6.3 per cent in July 2023 (June 2023: -18.7 per cent), with the non-food materials index falling to -8.7 per cent.

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

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

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