Malaysia’s producer price index rose 1.6 percent in June 2024 – DOSM

KUALA LUMPUR: Malaysia’s Producer Price Index (IHPR) increased by 1.6 percent in June 2024 compared to 1.4 percent in the previous month, according to the Department of Statistics Malaysia (DOSM).

IHPR measures changes in the price of goods at the producer level.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said all sectors in the IHPR of local production recorded an increase since March 2024.

“The mining sector increased by 4.6 percent (May 2024: 6.6 percent), with the index of natural gas extraction and crude petroleum extraction increasing by 4.6 percent and 4.5 percent, respectively.

“The agriculture, forestry, and fisheries sectors increased by 3.4 percent from 1.3 percent in the previous month, contributed by the permanent crop planting index (7.5 percent) and livestock production (1.7 percent),” he said in a statement on the Local Production IHPR, Malaysia, June 2024, issued on Monday.

He said at the same time, the manufacturing sector increased by 1.1 percent in June 2024 (May 2024: 1.0 percent), driven by the computer, electronic, and optical product manufacturing index (9.2 percent).

For the utility sector, the water supply index increased by 7.8 percent (May 2024: 8.7 percent), while the electricity and gas supply index increased by 1.0 percent (May 2024: 1.5 percent), he said.
Mohd Uzir said on a monthly basis, the IHPR of local production fell slowly to negative 0.1 percent in June 2024 (May 2024: -0.9 percent).

“This decrease was influenced by the mining sector, which fell by a negative 3.4 percent (May 2024: -5.5 percent) due to the index of natural gas extraction (-3.7 percent) and crude petroleum extraction (-3.3 percent),” he said.
Mohd Uzir said in addition, the average price of crude palm oil (CPO) was around RM3,960 per tonne in June 2024, an increase from around RM3,900 per tonne in the previous month.

“This price increase is due to the expected limited supply from Malaysia and Indonesia by the end of 2024, coupled with increased palm oil exports.

“The Malaysian Palm Oil Council (MPOC) also informed us that although the price may experience a slight increase, it is expected to remain below RM4,150 per ton. This limit is due to the projection of excess oil seed production by the United States Department of Agriculture (USDA) for 2024 and 2025,” he said.