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 October 2015 decreased by 2.6 per cent with local production index dropped by 4.8 per cent while the import price index increased by 1.8 per cent. (Table I)

The PPI for domestic economy in October 2015 registered an increase of 1.7 per cent when compared with the previous month. This was due to the increases in local production index (+1.0%) and import price index (+0.7%).

In seasonally adjusted terms, the producer price index for domestic economy in October 2015 increased by 2.3 per cent compared to September 2015.

LOCAL PRODUCTION

Year-on-year comparison showed that the PPI for local production fell 4.8 per cent in October 2015. The highest drop was recorded by Mining index (-31.4%), followed by Electricity & gas (-4.4%) and Manufacturing (-2.0%). Meanwhile, the index for Water supply and Agriculture, forestry & fishing showed an increase of 5.5 per cent and 4.3 per cent respectively. [Table II].

The PPI for local production increased by 1.0 per cent in October 2015 compared to previous month. This was mainly due to the increases in Agriculture, forestry & fishing (+5.3%), Mining (+4.1%), Water supply (+1.2%), Manufacturing (+0.2%) and Electricity & gas (+0.1%).

PPI for Local Production by Stage of Processing

The PPI for local production by stage of processing (SOP) inclined by 1.0 per cent in October 2015 compared to previous month. This inclination was due to the increases in the overall index that is Crude materials for further processing (+4.8%), Intermediate materials, supplies and components (+0.1%) and Finished goods (+0.1%).

As compared with the same month a year ago, the PPI for local production by SOP for October 2015 dropped by 4.8 per cent. This was due to decreases in index for Crude materials for further processing (-11.2%), followed by index for Intermediate materials, supplies and components (-5.3%). However, index for Finished goods increased by 1.5 per cent.

IMPORTS

The import price index went up by 0.7 per cent in October 2015 compared to September 2015. The increase in the index was attributed to the higher prices of goods transacted by importers for nine (9) commodity sections as classified under SITC 4+ i.e Miscellaneous  transactions  and  commodities (+4.8%), Animal & vegetable oils & fats (+1.2%), Machinery & transport equipment (+1.0%), Manufactured goods (+0.7%), Crude materials, inedible (+0.7%), Food (+0.3%), Miscellaneous manufactured articles (+0.3%), Beverages & tobacco (+0.3%) and Chemicals (+0.1%).  Meanwhile, a decrease was recorded for Mineral fuels, lubricants  etc. (-1.0%). [Table III]

On a yearly basis, the import price index for October 2015 increased by 1.8 per cent compared to the same month of preceding year. The inclination in prices were observed in nine (9) commodity sections which comprises of Miscellaneous transactions and commodities (+14.6%), Crude materials, inedible (+4.0%), Chemicals (+3.3%), Machinery & transport equipment (+3.1%), Miscellaneous manufactured articles (+2.6%), Manufactured goods (+2.3%), Animal & vegetable oils & fats (+2.3%), Food (+0.9%) and Beverages & tobacco (+0.5%). Meanwhile, a decrease was recorded for Mineral fuels, lubricants etc (-8.7%).

+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 October 2015 increased by 0.7 per cent compared to the previous month. This was due to increases in two stage of processing namely, index for Intermediate materials supplies and components (+1.1%) and Finished  goods (+0.2%). While, index for Crude  materials  for  further  processing decreased by 0.9 per cent.

The import price index by SOP for October 2015 inclined by 1.8 per cent  compared to October 2014. The increase in the prices was mainly due to  increases in the index for Intermediate materials, supplies and components (+3.2%) and Finished goods (+1.7%). While, index for Crude materials  for  further  processing decreased by 6.2 per cent.

RELEASED BY:

THE OFFICE OF CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS MALAYSIA
30 NOVEMBER 2015

Contact person:

Ho Mei Kei
Public Relation Officer
Corporate and User Services Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : mkho@stats.gov.my

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