Malaysia’s Producer Price Index Falls Further in May

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Malaysia’s producer price index (PPI), which measures the prices of goods at the factory gate, fell 4.6 percent in May, as against a drop of 3 percent in April, official data showed Tuesday.

The Department of Statistics Malaysia (DOSM) said in a statement that the agriculture, forestry and fishing sector recorded a further decline of 27.2 percent in May, mainly due to the oil palm fresh fruit bunches index continuing to drop.

Meanwhile, the mining sector tumbled 10.7 percent, dragged by a fall in the index for the extraction of crude petroleum.

The manufacturing sector, on the other hand, declined by 1.1 percent, due to the significant decrease in the index for the manufacture of food products.

Water supply and electricity and gas supply indices, however, edged up 3 percent and 1.2 percent, respectively.

On a monthly basis, the PPI for local production slipped by 0.4 percent, after an increase of 0.2 percent in the previous month.

According to the DOSM, commodity prices are expected to fall this year, especially energy prices, and the volatility of prices has affected the index of producer prices for most countries.