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Manufacturing sector is the major component covered in the PPI
The Producer Price Index in 2020 decreased 2.7%
Consumer Price Index fell 1.2% in 2020
Almost 1/3 of CPI weight contributed by Food & Non-Alcoholic Beverages

Producer Price Index Malaysia August 2021

Release Date : Thursday 30, September 2021 1200



The Producer Price Index (PPI) local production edged up 11.3 per cent year-on-year in August 2021 as compared to negative 2.8 per cent recorded in the same month of the preceding year. The PPI local production recorded an increase for the straight seven months. The increase in August 2021 was attributed mainly by the Mining index that surged 51.8 per cent (August 2020: -33.7%), followed by the indexes of Agriculture, forestry & fishing and Manufacturing with year-on-year growth of 27.6 per cent and 7.1 per cent respectively. The utility index also registered an increase of 0.4 per cent for Electricity & gas supply index, while, Water supply index recorded a drop of 0.4 per cent.

A month-on-month comparison showed that the PPI local production rose 0.6 per cent in August 2021, the same growth recorded in July 2021. The index of Agriculture, forestry & fishing moved up 2.8 per cent as opposed to 2.2 per cent recorded in the previous month. The increase of 0.6 percentage points was due to higher prices of Chicken (5.2%) and Fresh Fruit Bunches (3.6%). Nevertheless, the Mining index registered a decline of negative 0.8 per cent (July 2021: 3.9%) attributed by the fall in Crude Oil prices (-2.9%) despite continuous rise in Natural Gas commodity prices (10.1%). On the other hand, the Manufacturing index recorded an increase of 0.4 per cent contributed by an increase in the prices of refined petroleum commodity (2.0%), commodity based on vegetable and animal oils and fats (0.5%) and products related to electronic components and boards (0.4%). Index of Electricity & gas supply also increased 0.1 per cent while Water supply index decreased by negative 0.2 per cent.

Table 1 : Producer Price Index (2010=100) Local Production by Sector (MSIC 2008), Malaysia


In August 2021, the index of Crude materials for further processing increased 30.9 per cent as opposed to negative 8.7 per cent recorded in the same month of the previous year. The rise was contributed by indexes of Non-food materials and Foodstuffs & feedstuffs which moved up 37.5 per cent and 4.4 per cent. Similarly, the index of Intermediate materials, supplies & components also increased 11.2 per cent (August 2020: -2.0%) supported mainly by Processed fuel & lubricants (20.0%) and Materials & components for manufacturing (12.7%) indexes. However, the index of Finished goods registered a decrease of 1.3 per cent.

The same trend can be seen in terms of month-on-month comparison where the indexes of Crude materials for further processing and Intermediate materials, supplies & components increased 0.6 per cent and 1.0 per cent respectively. Meanwhile, the index of Finished goods decreased 0.2 per cent.

Table 2 : Producer Price Index (2010=100) Local Production by Stage of Processing



The full publication of the Producer Price Index Malaysia, August 2021 can be downloaded from  eStatistik portal.



Released by:

 DrUzir_Mahidin    Dr_Uzir

30 September 2021


Contact person:

Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
E-mail : yusrizal.razak[at]dosm.gov.my

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