KUALA LUMPUR (June 30): Malaysia's Producer Price Index (PPI) for local production stood at a new high of 111.6 index points after registering an increase of 11.9% in May 2021 as compared to the same period last year, the Department of Statistics Malaysia (DOSM) said.

In a statement, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was driven by a substantial increase in primary industry products, which led to a spike in mining (68.5%) as well as agriculture, forestry and fishing (60%).

“Additionally, the manufacturing index, which was influenced by a rise in primary and construction-related commodities prices, also showed a significant increase of 5%,” he said.

Meanwhile, the utility indices comprising water supply and electricity and gas supply also increased by 1.5% and 0.1% respectively.

On a monthly basis, Mohd Uzir said the PPI for local production rose 1% in May 2021 as compared to 0.8% in the previous month.

“The increase was supported by the mining index (2.1%), followed by agriculture, forestry and fishing (2%), manufacturing (0.7%), electricity and gas supply (0.7%) and water supply (0.1%),” he explained. 

The DOSM also reported the PPI for local production by stages of processing, in which all stages of processing recorded an increase in prices for May 2021.

It said the crude materials index for further processing rose 53.6%, while the index of intermediate materials, supplies and components also increased 6.9%.

“Subsequently, with higher prices of raw and intermediate materials, the finished goods index edged up 0.2%, mainly involving consumer goods which as a result may be reflected in the upcoming monthly Consumer Price Index (CPI),” it added.