KUALA LUMPUR: Malaysia’s producer price index (PPI), which measures changes in prices of goods at the producer level, fell year-on-year to 2.1 percent in September after seven consecutive months of growth, according to the Department of Statistics Malaysia (DoSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the largest percentage decline was recorded in the mining sector, which recorded a double-digit decline of 16.1 percent (August 2024: -8, 3 percent).

“The crude oil extraction and natural gas extraction indices decreased by 18.6 percent and 7.9 percent, respectively.

“At the same time, the manufacturing sector contracted by 1.5 percent (August 2024: increase of 1.0 percent), attributed to the coking and refined petroleum products manufacturing index (-18, 7 percent),” he said.

Meanwhile, Mohd Uzir said the agriculture, forestry and fisheries sector grew by 5.8 percent (August 2024: 2.7 percent), the perennial crop growth index recording an increase of 11.2 percent.

“For the utility sectors, the water supply index increased slightly by 7.8 percent, while the electricity and gas supply index increased by 0.3 percent” , he added.

On a monthly basis, Mohd Uzir said the local production PPI continued to decline by 1.5 percent in September (August 2024: -0.9 percent).

All sectors recorded a decline except the agriculture, forestry and fishing sector (up 1.6 percent).

For the third quarter of 2024, the PPI recorded a slight decline of 0.2 percent compared to 1.6 percent in the second quarter of 2024, mainly attributed to the performance of the mining sector (-7.7 percent).

“The PPI decreased by 1.6 percent quarter-on-quarter, compared to 1.1 percent in the second quarter of 2024, attributed to all sectors except water supply,” it said .

Regarding some countries, Mohd Uzir said the United States’ PPI grew at a slower pace, 1.8 percent in September, compared to 1.9 percent in August 2024.

“Japan’s PPI continued to rise by 2.8 percent, compared with a 2.6 percent increase in the previous month, contributed by the cost of transportation equipment and food and beverages,” he said. he declared.

On current prices of selected raw materials in Malaysia, he noted that global oil prices have stabilized at $74 per barrel – the lowest level since December 2021 – following a revision of demand forecasts by the Organization oil exporting countries and its allies (OPEC+). for this year and 2025.

“Meanwhile, the Malaysian Palm Oil Board expects the price of crude palm oil to remain around RM4,000 per tonne by the end of the year.

“However, it is possible that the price of this product could increase further, due to a decrease in production, which could lead to lower stock levels in the country and positively affect prices,” he said. declared. – Bernama

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