KUALA LUMPUR (Aug 28): Malaysia’s producer price index (PPI) rose by 1.3% year-on-year in July, continuing its growth, according to the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said all sectors in PPI local production had been increasing since March this year.

“The agriculture, forestry and fishing sector went up by 3.4%, with the growing of perennial crops index recording an 8.0% increase.

“The mining sector edged up 2.2%, contributed by a rise in the extraction of crude petroleum index (3.0%),” he said in a statement on Wednesday.

Likewise, Mohd Uzir said the manufacturing sector marginally increased by 0.9% (June: 1.1%) due to the indices of computer, electronic and optical products (7.0%) and food products (1.2%).

Meanwhile, increases were recorded in the indices of water supply (9.0%) and electricity and gas supply (0.3%).

Monthly PPI local production fell further by 0.2% in July, from -0.1% in June, due to the manufacturing sector, which was down by 0.3%.

Simultaneously, the electricity and gas supply index was also down by 0.8% (June: -1.1%).

“Conversely, the agriculture, forestry and fishing sector rose by 1.1% (June: 1.1%), with the growing perennial crops index posting a 2.7% rise.

“The mining sector was up by 0.7% (June: -3.4%), contributed by the extraction of crude petroleum index (2.7%),” the chief statistician said, adding that the water supply sector also increased by 0.8% from 0.1% in June.

Mohd Uzir said looking at selected countries, the US PPI rose by 2.2% in July against 2.7% in June.

“Japan’s PPI continued to increase, by 3.0% from a 2.9% rise in the prior month, driven by further rises in the cost of transport equipment, beverages and food, chemicals and petroleum and coal.

“Factory gate prices of goods produced in the UK also rose by 0.8%, slowing from 1.0% in June, due to refined petroleum products,” he said, while China’s producer prices declined further by 0.8%, similar to the previous month.

“Although indicating producer deflation, the latest figure remained the lowest since January 2023, contributed by multiple support measures by the government,” Mohd Uzir added.

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