KUALA LUMPUR, May 29 — The Producer Price Index (PPI) for local production decreased 5.1 per cent in April 2020 to 99.9 from 105.3 in the same month last year, recording the lowest rate of change since November 2015, said the Department of Statistics Malaysia (DOSM).
In a statement today, its chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, said the PPI for local production is a tool to measure inflation from the industry cost or production perspective.
"As this index measures price changes before they reach consumers, it is also seen as an indicator of the inflationary prefix. This index is important to the industry players to obtain the price information by stage of processing in order to gain maximum revenue with the minimum cost," he said.
He said out of 1,063 items covered in the PPI, 42.4 per cent recorded price increase in April 2020 as compared to April 2019.
On the contrary, 49.8 per cent of the items showed a decline while 7.8 per cent of the items were unchanged.
Mohd Uzir said the Mining index registered a higher rate of decline of 58.3 per cent while the Water supply index dropped 1.0 per cent.
He said, in contrast, the index of agriculture, forestry & fishing increased 8.7 per cent, followed by electricity & gas supply index (0.2 per cent) and manufacturing index (0.1 per cent).
On a monthly basis, the PPI local production dropped 2.7 per cent as compared to March 2020, contributed by the decrease in all sectors: mining (-30.6 per cent), agriculture, forestry & fishing (-3.2 per cent), manufacturing (-0.7 per cent), water supply (-0.6 per cent) and electricity & gas supply (-0.3 per cent), he added.
The PPI for local production by stage of processing showed a sharp decline in crude materials for further processing (-28.9 per cent), mainly due to the price decrease in petroleum products.
Meanwhile, intermediate materials, supplies & components and finished goods registered an increase of 0.4 per cent and 1.1 per cent respectively.
— Bernama
