Producer Price Index climbs 6.4% in June, mining sees highest increase

KUALA LUMPUR (July 31): The Producer Price Index (PPI) for local production grew 6.4% year-on-year in June 2017 to 106.3 from 99.9, according to the Department of Statistics Malaysia.

The increase was boosted by significant increases in the mining, manufacturing, agriculture, forestry and fishing sectors, as well as in the electricity and gas supply sectors during the period, the department said in a statement.

It said the mining sector posted the highest increase in index at 10.2%, followed by manufacturing at 6.6%, agriculture, forestry and fishing at 5%, and electricity and gas supply at 0.8%.

The water supply sector, meanwhile, recorded negative index growth with a 0.7% decline.

On a monthly basis, PPI for local production decreased 1.1% from 107.5 in May 2017 to 106.3 in June this year. This was due to declines in four industries, namely mining; agriculture, forestry and fishing; manufacturing; as well as water supply.

The largest decline was recorded by the mining industry at 5.2%. This was followed by the agriculture, forestry and fishing at 2.3%, manufacturing at 0.5% and water supply at 0.3%.

“However, electricity and gas supply remained unchanged,” the statistics department said.

Meanwhile, PPI for domestic production by stage of processing (SOP) was also 6.4% higher y-o-y in June 2017, boosted by index growths for intermediate materials, supplies and components, crude materials for further processing and finished products.

“The increases were propelled by the index for intermediate materials, supplies and components (up 9.9%), crude materials for further processing (up 4%), and finished goods (up 1.3%),” the department noted.

On a monthly basis, PPI for local production by SOP in June was down 1.1%, dragged by decreases in indices for crude materials for further processing (down 4.1%), intermediate materials, supplies and components (down 0.5%), and finished goods (down 0.1%).

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