PPI eases further to 6.8% in August

KUALA LUMPUR: Malaysia’s Producer Price Index (PPI) for local production eased further to 6.8% in August compared with 7.6% in the previous month, according to the Statistics Department.

It said the lower reading was attributed to the manufacturing index with a 9.4% expansion (July 2022: 9.9%), followed by the mining index which increased by 5.8%, slower than the 9% posted in July 2022, Bernama reported.

“Meanwhile, the agriculture, forestry and fishing index recorded a decrease of 10.6% in August 2022 (July 2022: minus 10.3%),” it said in a statement yesterday.

It said the water supply and electricity and gas supply indices recorded an increase of 3.0% and 0.9% in August 2022, respectively.

For monthly comparison, it said PPI local production posted a decline for three consecutive months to minus 0.2% in August compared with minus 2.3% in July, driven by the mining index that recorded a decline of minus 3.7% (July 2022: minus 3.6%).

“In addition, the manufacturing index also posted a decrease of negative 0.1% in August 2022. It recorded the first decline since September 2020 (minus 0.2%) after posting an increase for 22 consecutive months.

“On the other hand, the agriculture, forestry and fishing index increased 2.5% in August (July 2022: minus 22.3%).

“For utility indices, the water supply and electricity and gas supply indices recorded an increase of 0.8% and 0.1%, respectively,” it said.

In terms of PPI local production by stage of processing, the department said crude materials for further processing index declined for the first time since January 2021, with minus 0.5% in August 2022.