Overview

The Producer Price Index (PPI) comprises of indices for local production, imports and domestic economy. The domestic economy price index is a composite index based on the price data derived from the local production and import price indices.

DOMESTIC ECONOMY

Year-on-year comparison showed that the PPI for domestic economy in August 2015 decreased by 5.4 per cent with local production index dropped by 8.5 per cent while the import price index inclined by 0.8 per cent. (Table I)

The PPI for domestic economy in August 2015 registered a decrease of 0.6 per cent when compared with the previous month. This was due to the decreases in local production index (-0.8%) and import price index (-0.1%).

In seasonally adjusted terms, the producer price index for domestic economy in August 2015 decreased by 0.3 per cent compared to July 2015.

LOCAL PRODUCTION

Year-on-year comparison showed that the PPI for local production fell 8.5 per cent in August 2015. The highest drop was recorded by Mining index (-40.9%), followed by Electricity & gas (-9.2%), Manufacturing (-4.1%) and Agriculture, forestry & fishing (-2.2%). Meanwhile, the index for Water supply increased (+5.0%). [Table II].

The PPI for local production decreased by 0.8 per cent in August 2015 compared to previous month. This was mainly due to the decreases in Agriculture, forestry & fishing (-5.0%), Mining (-4.7%), Electricity & gas (-0.4%) and Manufacturing (-0.1%). However, index for Water supply showed an increase of 1.4 per cent.

PPI for Local Production by Stage of Processing

The PPI for local production by stage of processing (SOP) declined by 0.8 per cent in August 2015 compared to previous month. The decline was due to the decrease in the index for Crude materials for further processing (-8.1%). However, indices for Intermediate materials, supplies and components and Finished goods showed an increase of 1.2 per cent and 0.2 per cent respectively.  

As compared with the same month a year ago, the PPI for local production by SOP for August 2015 dropped by 8.5 per cent. This was due to decreases in index for Crude materials for further processing (-24.5%), followed by index for Intermediate materials, supplies and components (-6.6%). However, index for Finished goods increased by 1.1 per cent.

IMPORTS

The import price index went down by 0.1 per cent in August 2015 compared to July 2015. The decrease in the index was attributed to the lower prices of goods transacted by importers for three (3) commodity sections as classified under SITC 4+ i.e Mineral fuels, lubricants etc. (-1.2%), Miscellaneous transactions and commodities (-0.9%) and Machinery & transport equipment (-0.2%). Meanwhile, increases were recorded for Miscellaneous manufactured articles (+0.6%), Food (+0.3%), Crude materials, inedible (+0.1%) and Animal & vegetable oils & fats (+0.1%). However, index for Manufactured goods, Chemicals and Beverages & tobacco remained unchanged. [Table III]

On a yearly basis, the import price index for August 2015 increased by 0.8 per cent compared to the same month of preceding year. The incline in prices were observed in eight (8) commodity sections which comprises of Miscellaneous transactions and commodities (+4.9%), Crude materials, inedible (+3.2%), Machinery & transport equipment (+2.6%), Chemicals (+2.6%), Miscellaneous manufactured articles (+2.3%), Animal & vegetable oils & fats (+1.6%), Manufactured goods (+0.5%) and Food (+0.3%). Meanwhile, decreases were recorded for Mineral fuels, lubricants etc (-10.0%). However, index for Beverages & tobacco remained unchanged.

(+Standard International Trade Classification Rev.4)

Import Price Index by Stage of Processing

On a monthly basis, the import price index by stage of processing (SOP) for August 2015 decreased by 0.1 per cent compared to the previous month. This was due to decreases of 0.6 per cent in the index for Crude materials for further processing and 0.1 per cent in Intermediate materials supplies and components, while index for Finished goods recorded an increase by 0.2 per cent.

The import price index by SOP for August 2015 inclined by 0.8 per cent compared to August 2014. The increase in the prices was mainly due to increases in the index for Intermediate materials, supplies and components (+2.1%) and Finished goods (+1.2%), while index for Crude materials for further processing decreased by 7.4 per cent.

RELEASED BY:

THE OFFICE OF CHIEF STATISTICIAN MALAYSIA

DEPARTMENT OF STATISTICS MALAYSIA

30 SEPTEMBER 2015

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Norrita binti Amran
Public Relation Officer
Corporate and User Services Division
Department of Statistics, Malaysia
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