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

The PPI for domestic economy in February 2015 increased by 0.4 per cent due to the increase in both  local production (+0.5%) and import price indices (+0.1%). (Table 1)

Year-on-year comparison showed that the PPI for domestic economy index decreased by 5.4 per cent with local production index dropped by 7.8 per cent and the import price index declined by 0.4 per cent. 

IMPORTS

The import price index went up by 0.1 per cent in February 2015 compared to January 2015. The increase in the index was attributed to the higher prices of goods transacted by importers for three (3) commodity sections as classified under SITC 4⁺ i.e Miscellaneous manufactured articles (+0.4%), Animal and vegetable oils and fats (+0.4%) and Machinery and transport equipment (+0.2%). However, decreases were recorded for Crude materials, inedible (-3.1%), Miscellaneous transactions and commodities (-0.4%), Mineral fuels, lubricants etc. (-0.3%), Food (-0.3%), Chemicals (-0.2%) and Manufactured goods (-0.1%). Meanwhile, index for Beverages & tobacco remained unchanged. [Table 3]

On a yearly basis, the import price index for February 2015 decreased by 0.4 per cent compared to the same month of preceding year. The decline in prices were observed in three (3) commodity sections which comprises of Mineral fuels, lubricants etc (-11.0%), Animal and vegetable oils and fats (-3.8%) and Chemicals (-0.7%). However, increases were recorded for Miscellaneous transactions and commodities (+3.0%), Machinery and transport equipment (+1.7%), Miscellaneous manufactured articles (+0.9%), Crude materials, inedible (+0.4%), Food (+0.3%) and Manufactured goods (+0.2%). Meanwhile, index for Beverages and tobacco remained unchanged.

Import Price Index by Stage of Processing

On a monthly basis, the import price index by stage of processing (SOP) for February 2015 increased by 0.1 per cent compared to the previous month. This was due to increases by the index for Finished goods (+0.2%) and Intermediate materials supplies and components (+0.1%). Meanwhile, index for Crude materials for further processing decreased by 0.3 per cent.

The import price index by SOP for February 2015 declined by 0.4 per cent compared to February 2014. The drop in the prices was mainly due to the decrease in the index for Crude materials for further processing (-8.3%). However, indices for Intermediate materials, supplies and components and Finished goods increased by 0.7 per cent and 0.4 per cent respectively.

Released By:

THE OFFICE OF CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
31 March 2015