KUALA LUMPUR: Malaysia's Producer Price Index (PPI) declined by 0.4 per cent in November 2024, a slower decrease compared to the 2.4 per cent drop in October 2024, mainly due to the continued contraction in the mining sector, according to the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the mining sector fell by 8.3 per cent in November 2024, compared to a sharper decline of 17.3 per cent in October 2024, driven by a 14.8 per cent decrease in the extraction of crude petroleum index.

"The manufacturing sector recorded a smaller decline, a drop of 1.8 per cent compared to a 2.6 per cent decrease in October 2024.

"This was largely due to lower prices in the index of manufacture of coke and refined petroleum products (-16.8 per cent); manufacture of chemicals and chemical products (-5.1)," he said in a statement today.

Conversely, Mohd Uzir noted that the agriculture, forestry, and fishing sector surged by 21.8 per cent, up from 13.8 per cent in October, led by a 37.7 per cent increase in the growing of perennial crops index.

Month-on-month, the chief statistician said the PPI rose by 1.4 per cent, supported by an 8.5 per cent gain in agriculture and a 5.7 per cent rebound in mining, with notable increases in the extraction of natural gas (14.2 per cent) and crude petroleum (2.7 per cent).

Elaborating further on the PPI local production by stage of processing, Mohd Uzir said the finished goods index rose by 0.4 per cent in November 2024, driven by a 1.3 per cent increase in the capital equipment index.

Meanwhile, the crude materials for further processing index declined by 2.0 per cent, primarily due to a 2.4 per cent drop in non-food materials, and the intermediate materials, supplies and components index fell slightly by 0.2 per cent due to the 4.2 per cent decrease in processed fuel and lubricants.

Looking at selected countries, Mohd Uzir said the PPI of the United States rose by 3.0 per cent, driven by the final demand index, while Japan's 3.7 per cent increase was attributed to higher costs in agriculture, forestry, and fishery products.

He added that the United Kingdom recorded a 0.6 per cent decline due to lower chemical costs, while China continued its deflationary trend with a 2.5 per cent contraction, marking its 26th consecutive month of deflation as Beijing implemented measures to stabilise the economy ahead of the year-end.

Regarding Malaysia's current selected commodity prices, Mohd Uzir noted that global crude oil prices experienced fluctuations due to factors such as supply decisions by major oil producers and concerns over global demand, as reported in the International Energy Agency's (IEA) November 2024 Oil Market Report.

"Overall, Brent crude oil prices ranged between US$71 to US$75 per barrel during the month. While global crude oil prices declined due to oversupply and economic concerns, Malaysia's prices increased, supported by currency strength and regional demand dynamics.

"Meanwhile, according to the Malaysian Palm Oil Council (MPOC), Malaysia's crude palm oil prices are hovering around RM5,000 per tonne this month, supported by uncertainties in export supply and a decline in production," he added.