DEPARTMENT OF STATISTICS, MALAYSIA PRESS RELEASE PRODUCER PRICE INDEX MALAYSIA SEPTEMBER 2014 EMBARGO: Only to be published or disseminated at 1200 hours, on Friday, 31 October 2014 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 September 2014 increased by 0.2 per cent to 126.2 from 126.0 in August 2014. This was due to the increase in the PPI for local production by 0.3 per cent in contrast to decrease in the import price index by 0.1 per cent (Table 1). However, year-on-year comparison showed that the PPI for domestic economy index increased by 0.6 per cent with local production index moved up by 0.5 per cent and import price index by 0.5 per cent. Table 1: Producer Price Index, Malaysia (2005=100) Index PPI Domestic Economy - Local Production - Import Percentage change Sept 2013 Aug 2014 Sept 2014 Aug 2014 - Sept 2014 Sept 2013 - Sept 2014 125.5 132.1 112.6 126.0 132.4 113.3 126.2 132.8 113.2 0.2 0.3 -0.1 0.6 0.5 0.5 1 Graph 1: Producer Price Index – Domestic Economy, Local Production and Imports, 2009-2014 Local Production 145.0 Domestic Economy 135.0 Index 125.0 115.0 105.0 Imports 95.0 J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A S 2009 2010 2011 2012 2013 2014 Month Graph 2: Producer Price Index (year-on-year) Percentage Change – Domestic Economy, Local Production and Imports, 2009-2014 8.0 Domestic Economy 6.0 4.0 Percentage change 2.0 0.0 -2.0 Imports -4.0 Local Production -6.0 -8.0 J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A S 2009 2010 2011 2012 Month 2 2013 2014 LOCAL PRODUCTION The PPI for local production went up by 0.3 per cent in September 2014 as compared to previous month. The increase in the overall index was mainly due to the positive change in one category (as per classified under MSIC 2000*) which is Mining (+5.4%). In contrast, index for Electricity, gas & water supply went down (-3.8%), Agriculture (-2.4%), Fishing (-1.7%) and Manufacturing (-0.1%) [Table 2]. Year-on-year comparison revealed that the PPI for local production moved up by 0.5 per cent in September 2014 over the same month of previous year. The index for Electricity, gas & water supply surged by 6.9 per cent, Fishing 4.7 per cent and Manufacturing 1.5 per cent. However, index for Agriculture and Mining moved down 4.1 per cent and 3.2 per cent respectively. PPI for Local Production by Stage of Processing The increase of 0.3 per cent in PPI for local production by stage of processing (SOP) from previous month was due to the positive changes in the index for one stage of processing namely, Crude materials for further processing (+2.8%). However, Finished goods decreased (-0.4%) and Intermediate materials, supplies and components moved down (-0.1%). As compared with the same month a year ago, the PPI for local production by SOP for September 2014 increased by 0.5 per cent. The index for Intermediate materials, supplies and components went up by 2.4 per cent followed by Finished goods 0.7 per cent. In contrast, Crude materials for further processing receded 4.5 per cent. *Malaysia Standard Industrial Classification 2000 3 Table 2: Percentage change of PPI (2005=100) for Local Production by category (MSIC 2000) and stage of processing, Malaysia Index Category Code Sept 2013 Aug 2014 Sept 2014 Aug 2014 – Sept 2014 Sept 2013 Sept 2014 100.00 132.1 132.4 132.8 0.3 0.5 6.60 0.81 9.83 80.00 2.76 158.2 157.8 189.4 122.9 122.7 155.5 168.1 173.9 124.9 136.4 151.7 165.2 183.3 124.8 131.2 -2.4 -1.7 5.4 -0.1 -3.8 -4.1 4.7 -3.2 1.5 6.9 100.00 132.1 132.4 132.8 0.3 0.5 1 14.88 176.0 163.5 168.0 2.8 -4.5 2 54.62 131.4 134.7 134.5 -0.1 2.4 3 30.50 111.9 113.2 112.7 -0.4 0.7 Total Agriculture Fishing Mining Manufacturing Electricity, gas and water supply A B C D E PPI by stage of processing Crude materials for further processing Intermediate materials, supplies and components Finished goods Percentage change Weight IMPORTS The import price index went down 0.1 per cent in September 2014 as compared to August 2014. The decrease in the overall index was attributed to the lower prices of goods transacted by importers for seven (7) commodity sections as classified under SITC 3+. The commodity sections that showed decreases were Animal and vegetable oils and fats (-1.8%), Mineral fuels, lubricants, etc. (-0.7%), Miscellaneous transactions and commodities (-0.3%), Machinery and transport equipment (-0.1%), Manufactured goods (-0.1%), Chemicals (-0.1%) and Food (-0.1%) [Table 3]. As compared with the same month of preceding year, the import price index for September 2014 moved up 0.5 per cent to 113.2 from 112.6. The increase in prices were found in four (4) commodity sections which comprised Machinery and transport equipment (+0.8%), Miscellaneous manufactured articles (+0.8%), Food (+0.3%) and Beverages (+0.3%). However, Chemicals remained unchanged at 111.7. + Standard International Trade Classification Rev.3 4 and tobacco Import Price Index by Stage of Processing The decrease (-0.1%) in the import price index by stage of processing (SOP) for September 2014 as compared to previous month resulted from the negative change reported by the index for Crude materials for further processing (-0.2%) and Intermediate materials supplies and components (-0.1%). Meanwhile, index for Finished goods remained unchanged at 108.3. As compared with September 2013, the import price index by SOP for September 2014 went up by 0.5 per cent. The positive changes for overall index was brought about by the increase in the indices for Crude materials for further processing 1.7 per cent, Intermediate materials, supplies and components 0.4 per cent and Finished goods 0.2 per cent. Table 3: Percentage change of Import price index (2005=100) by comodity section (SITC 3) and stage of processing, Malaysia Index Section Total Food Beverages and tobacco Crude materials, inedible Mineral fuels, lubricants, etc. Animal and vegetable oils and fats Chemicals Manufactured goods Machinery and transport equipment Miscellaneous manufactured articles Miscellaneous transactions and commodities Code Weight Sept 2013 Aug 2014 Sept 2014 Aug 2014 Sept 2014 Sept 2013 Sept 2014 0 1 2 3 4 5 6 7 8 9 100.00 3.961 0.202 2.323 8.412 0.467 7.476 9.867 61.518 4.441 1.333 112.6 148.1 105.7 120.0 135.3 148.8 111.7 106.1 107.9 106.4 129.2 113.3 148.6 106.0 119.2 136.1 148.0 111.8 106.1 108.9 107.1 129.2 113.2 148.5 106.0 119.3 135.2 145.3 111.7 106.0 108.8 107.2 128.8 -0.1 -0.1 0.0 0.1 -0.7 -1.8 -0.1 -0.1 -0.1 0.1 -0.3 0.5 0.3 0.3 -0.6 -0.1 -2.4 0.0 -0.1 0.8 0.8 -0.3 1 2 100.00 7.48 70.88 112.6 138.1 111.3 113.3 140.7 111.9 113.2 140.4 111.8 -0.1 -0.2 -0.1 0.5 1.7 0.4 3 21.64 108.1 108.3 108.3 0.0 0.2 PPI by stage of processing Crude materials for further processing Intermediate materials, supplies and components Finished goods Percentage change RELEASED BY: THE OFFICE OF CHIEF STATISTICIAN MALAYSIA DEPARTMENT OF STATISTICS MALAYSIA 31 OCTOBER 2014 5