KUALA LUMPUR: The producer price index (PPI) for local production, which measures prices of goods at the factory gate, grew at a slower pace of 1.3% year-on-year (y-o-y) in January 2023 compared with 3.5% y-o-y in December 2022, according to the Statistics Department.
Based on its infographic, the slower growth was partly due to a larger decrease in the agriculture, forestry and fishing sector PPI, which shrank 20.9% y-o-y versus the 17.5% contraction posted in the previous month.
Moreover, the mining index slipped 2.2% y-o-y last month after growing 3.7% in December 2022.
However, the department said January’s growth was supported by the manufacturing sector PPI, which expanded 4.5% y-o-y, albeit moderating from 6.1% in December 2022, as well as the electricity and gas supply sector PPI, which inched up 1.2% y-o-y from 1% previously.
The water supply index was unchanged at 3.8% y-o-y in January 2023, it said.
On a monthly basis, the Statistics Department said the PPI for local production, which shrank 0.3% in December 2022, eased further by 0.8% last month.
It was dragged down mainly by the mining index, which shrank 2.2% from a growth of 3.7% in the previous month, and the manufacturing index, which slipped 0.7% after staying flat in December 2022.
As for the PPI for selected countries, the infographic showed the United States’ PPI also continued to climb to 6% y-o-y in January 2023 albeit at a slower pace compared with 6.5% the month before; Germany’s PPI went up 17.8% y-o-y from December 2022’s 21.6%, and China’s PPI contraction widened by 0.8% y-o-y from 0.7% in December 2022.
On the outlook, chief statistician Datuk Seri Mohd Uzir Mahidin said that based on global economic projections, commodities are expected to experience a modest decline in 2023 compared to last year due to disruptions caused by Russia’s invasion of Ukraine, coupled with sluggish global demand and geopolitical pressure between the United States and China.
He noted a Fitch Solutions’ 2023 Market Outlook report that said out of 26 commodities, 19 commodities are expected to record lower market prices on a y-o-y basis, including Malaysia’s main export of palm oil.
“Other commodities like sugar and rice are projected (to see) higher market prices,” he said in a separate statement yesterday. — Bernama
