The new basket contains 1063 products. Updating of basket of goods will ensure that the products selected for PPI computation can measure the average price change as imposed by producers of goods in an industry. For further information, please refer to the baseline note at the end of the press release.
Producer Price Index (2010=100) by Sector (MSIC 2008)
The Producer Price Index (PPI) for local production decreased 1.2 per cent on a year -on- year basis in January 2018, 0.9 points upper as compared to 0.3 per cent in December 2017. Among the sectors which decreased during this period were Agriculture, forestry & fishing (-13.8%), Manufacturing (-0.7%) and Electricity & gas supply (-0.4%). Meanwhile, the index Mining (+8.9%) and Water supply (+1.0%) increased.
On a monthly basis, PPI for local production increased by 0.5 per cent in January 2018. This was due to increases in Mining (+6.3%) and Agriculture, forestry & fishing (+2.7%) sectors. Meanwhile, the index for Manufacturing decreased by 0.4 per cent and Electricity & gas supply 0.3 per cent. Index for Water supply remained unchanged. [Table I].
PRODUCER PRICE INDEX BY STAGE OF PROCESSING
The PPI for local production by stage of processing (SOP) increased by 0.5 per cent in January 2018. This was due to the increase in the index for Crude materials for further processing (+3.5%). Meanwhile, Intermediate materials, supplies and components decreased (-0.4%) and Finished goods (-0.1%).
As compared with the same month a year ago, the PPI for local production by SOP for January 2018 decreased 1.2 per cent. The decreased was fuelled by the index for Intermediate materials, supplies and components (-1.5%) Crude materials for further processing (-1.0%) and Finished goods (-0.4%). [Table II].
UPDATING PRODUCER PRICE LOCAL PRODUCTION INDEX BASKET 2010=100
The weights for updating PPI 2010=100 is updated using data from Economic Census (BE) 2016 and relevant government agencies.
Preparation of the PPI (2010=100) used the "Fixed Basket" method. The PPI arrangement is used the Chain Index method by updating its basket without changing the base year each time the Economic Census (BE) is conducted. Starting January 2018, index is released using the Chain Link method. The updated PPI basket (2010 = 100) used the latest BE 2016.
Rebasing is very different from the process of updating basket. The rebasing is only changing its base period. It is a purely mechanical operation in forming a more convenient series for performances and comparisons or estimates. Products are selected based on relative product and contribution to the industry's sales value and only products with significant weights are selected for inclusion in the PPI basket.
The new weight of local production according to MSIC and the commodity section (SITC) for updating basket (2010 = 100) using the Economic Census 2016 is as follows:
PPI (2010=100) Weights by Commodity Section (SITC)
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
28 February 2018
Ho Mei Kei
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : mkho[at]stats.gov.my