MALAYSIA'S PPI REMAINS HIGH WITH 11 PCT GROWTH IN APRIL 2022 - DOSM

KUALA LUMPUR,  May 31 (Bernama) -- Malaysia's Producer Price Index (PPI) for local production, which measures the costs of goods at the factory gate, continued to register double-digit growth in April 2022 at 11.0 per cent, said the Department of Statistics Malaysia (DOSM). 

It was, however, slightly lower compared to the 11.6 per cent year-on-year (y-o-y) growth recorded in March 2022, the agency said.

In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said the growth in April was driven mainly by the mining index, which rose 18.4 per cent y-o-y (March 2022: 28.2 per cent).

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The index of agriculture, forestry and fishing registered an increase of 18.0 per cent (March 2022: 24.9 per cent), mainly led by an increase in indices of growing of perennial crops (23.8 per cent) and fishing (7.0 per cent). 

Meanwhile, the manufacturing index rose 9.8 per cent (March 2022: 8.9 per cent).

“The growth was supported by an increase in indices of subsectors such as the manufacture of refined petroleum products (23.4 per cent), manufacture of vegetable and animal oils and fats (23.4 per cent), and manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms (13.9 per cent),” Mohd Uzir said.

The water supply index and electricity and gas supply index increased by 1.2 per cent and 0.6 per cent, respectively.

On the month-on-month (m-o-m) comparison, Mohd Uzir said the PPI for local production in April 2022 increased moderately at 0.2 per cent m-o-m compared to the 2.4 per cent m-o-m growth seen in March.

“The moderate rise was supported by the manufacturing index that increased 1.4 per cent, underpinned by an increase in indices of subsectors namely the manufacture of vegetable and animal oils and fats (3.6 per cent), manufacture of refined petroleum products (2.4 per cent), and manufacture of electronic components and boards (1.0 per cent),” he said.

However, he noted that the increase in the PPI local production during April 2022 was offset by the 2.9 per cent m-o-m decline in the agriculture, forestry and fishing index (March 2022: +8.6 per cent) due to a drop in the index of oil palm fresh fruit bunches (-4.3 per cent).

“In addition, the mining index also registered a 6.6 per cent decline in April 2022 (March 2022: + 5.0 per cent), attributed to the 8.6 per cent decline in the crude oil index,” he said.

The indices of electricity and gas supply and water supply edged up 0.7 per cent and 0.2 per cent, respectively.

On the PPI for local production by stage of processing, Mohd Uzir said the index of crude materials for further processing increased 17.1 per cent y-o-y in April 2022 (March 2022: 23.3 per cent).

The increase, he said was contributed by indices of non-food materials (19.9 per cent) and foodstuffs and feedstuffs (2.0 per cent).

The index of intermediate materials, supplies and components also showed growth, rising 13.1 per cent (March 2022: 12.5 per cent), driven by an increase in indices of processed fuel and lubricants (19.5 per cent), materials and components for manufacturing (14.3 per cent), and materials and components for construction (4.5 per cent).

The finished goods index registered a 1.1 per cent increase (March 2022: 0.4 per cent).

In terms of monthly comparisons, the chief statistician said the index of crude materials for further processing contracted 3.5 per cent m-o-m against a 6.7 per cent increase in March 2022 with index of intermediate materials, supplies and components edged up 1.8 per cent, while finished goods index rose moderately 0.3 per cent.

Commenting further, Mohd Uzir said that crude oil price fell slightly to US$105.8 per barrel in April 2022 from US$115.6 per barrel in March 2022 due to several factors, including uncertainties in supply and demand prospects as well as worries over the surge in COVID-19 cases in China, the primary user of the commodity.

The fall was also contributed by the International Energy Agency’s announcement that its 31 member countries agreed on April 1 to another release of oil from emergency reserves in response to the market turmoil caused by Russia’s invasion of Ukraine, he said.

In addition, he said, the price of Malaysia’s primary commodity, which is crude palm oil, also declined from RM6,867.00 per tonne in March 2022 to RM6,678.00 per tonnes last month, largely underpinned by subdued global demand besides the weaker prices of other vegetable oils.

“The fall in commodity prices during April 2022 may relieve inflationary pressures. However, prices are seen to be very high and the uncertainties in price trends for the upcoming months are still raising concerns,” he added.

-- BERNAMA