KUALA LUMPUR, March 29 ― Malaysia's producer price index (PPI) for local production, which measures the costs of goods at the factory gate, rose 9.7 per cent year-on-year in February 2022, “led by higher prices of the primary commodity,” said the Department of Statistics Malaysia (DOSM).
Chief statistician Datuk Seri Mohd Uzir Mahidin said the better performance was driven by the mining index, which rose 23.3 per cent compared to 34.3 per cent recorded in January 2022.
February's performance was also due to a higher increase in the agriculture, forestry, and fishing index at 17.7 per cent, compared to 12.5 per cent in January 2022, according to DOSM.
The increase was mainly led by the indices of perennial crops at 23.3 per cent, fishing at 9.4 per cent, and animal production at 4.8 per cent.
“The manufacturing index also increased 7.9 per cent compared to 7 per cent recorded in January 2022, supported by an increase in the indices of subsectors, namely the manufacture of refined petroleum products at 20.3 per cent, manufacture of vegetable and animal oils and fats (18.6 per cent) and manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics, and synthetic rubber in primary forms (13.1 per cent),” Mohd Uzir said in a statement.
In addition, the indices of water supply, as well as electricity and gas supply, increased 1.4 per cent and 0.8 per cent, respectively.
On a month-on-month comparison, Mohd Uzir said, the PPI for local production increased 2 per cent as opposed to 1.3 per cent recorded in the previous month.
“The increase was driven by a 6.9 per cent increase in agriculture, forestry and fishing index, where it was underpinned by the higher price of oil palm fresh fruit bunches,” he added.
Mohd Uzir said the rise in crude oil and natural gas prices in February 2022 led to a 3.6 per cent increase in the mining index.
Meanwhile, the manufacturing index increased 1.3 per cent, contributed by the indices of subsectors manufacture of vegetable and animal oils and fats (3.2 per cent), manufacture of refined petroleum products (2.1 per cent) and manufacture of electronic components and boards (0.5 per cent).
In addition, the electricity and gas supply index edged up 0.2 per cent, while, the water supply index declined 0.2 per cent.
On the PPI for local production by stage of processing, Mohd Uzir said the index of crude materials for further processing increased 17.7 per cent in February 2022, supported by the indices of non-food materials (20.4 per cent), as well as foodstuffs and feedstuffs (3.7 per cent).
Commenting on the impact of the war between Russia and Ukraine on world primary commodity prices, Mohd Uzir said disruptions in the global supply chain for world primary commodities are expected to worsen.
He said the prices for primary commodities and raw materials such as crude oil, semiconductors, fertilisers, and natural gas are expected to keep rising as these two countries are major producers of raw materials.
“Consequently, prices for end products will also increase, leaving consumers, especially those in the low-income household groups, feeling the pinch,” he said. ― Bernama
