Stats Dept: Malaysia’s Producer Price Index rises 6.7pc in March, highest increase since Aug 2017

KUALA LUMPUR, April 28 ― The Producer Price Index (PPI) for local production recorded an increase of 6.7 per cent in March 2021 from 2.7 per cent in February, the highest rise since August 2017.

Department of Statistics Malaysia (DOSM) chief statistician Datuk Seri Mohd Uzir Mahidin said the growth was driven by the increase in the mining index which rebounded to 32.0 per cent compared to negative 11.0 per cent in February 2021.

“The agriculture, forestry and fishing index marked a new high growth of 41.1 per cent as commodities recorded higher prices this month,” he said in a statement today.

Subsequently, he said the manufacturing index also registered an increase of 2.2 per cent resulted from a higher price of petroleum and agriculture commodities.

However, the electricity, as well as gas supply and water supply indices recorded a decline of 1.4 per cent and 0.1 per cent, respectively.

On a monthly basis, he pointed out that the PPI local production recorded an increase of 0.7 per cent in March 2021, down from 1.5 per cent in February 2021.

“All four indices continued their momentum of growth; agriculture, forestry and fishing (2.3 per cent), mining (one per cent), electricity and gas supply (0.8 per cent), and manufacturing (0.6 per cent), while, the water supply index fell 0.2 per cent.” Mohd Uzir said.

For the first quarter, he said the PPI local production rose 3.0 per cent to 108.5 from 105.3 in the same quarter of the previous year.

“The growth was due to the higher indices of agriculture, forestry and fishing (32.6 per cent), manufacturing (1.6 per cent) and water supply (0.4 per cent),” he said, adding that mining, and electricity and gas supply indices recorded a decline of 7.3 per cent and 1.7 per cent, respectively.

For quarterly comparison, he added that the PPI local production increased 5.1 per cent from 2.0 per cent in the fourth quarter of 2020.

For stages of processing, the DOSM reported that the index of crude materials for further processing surged to 31.8 per cent from 10.0 per cent in February 2021 while index of intermediate materials, supplies and components increased 2.8 per cent.

In contrast, the finished goods recorded a negative 0.2 per cent. ― Bernama