Malaysia's PPI (May) Continues To Record High Growth

Although rate of PPI inflation for agriculture, forestry & fishing industry slowed to +16.7%yoy, the double-digit increase highlights the ongoing upward pressures especially for food prices.

Malaysia's PPI (May) Continues To Record High Growth

According to the Department of Statistics Malaysia, Malaysia's Producer Price Index (PPI) local production, which measures the costs of goods at the factory gate, remained high in May with a growth of 11.2% year over year (y-o-y), up from 11.0 % y-o-y in April 2022.

MIDF says Malaysia’s producer prices rose slightly faster at +11.2%yoy in May-22 (Apr-22: +11%yoy) as local suppliers continued to face challenges from rising cost pressures.

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PPI inflation

In particular, the mining and manufacturing sectors recorded faster PPI inflation at +20.6%yoy and +10.1%yoy, respectively.

Although rate of PPI inflation for agriculture, forestry & fishing industry slowed to +16.7%yoy, the double-digit increase highlights the ongoing upward pressures especially for food prices.

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Factors such as rising import costs, shortages of labour, and high commodity prices add to the inflationary pressures experienced by local producers, on top of other supply constraints and disruption in the global supply chain.

"With PPI inflation remaining above CPI inflation, we opine businesses may pass on more cost increases to their consumers.

"In other words, apart from growing demand, the rise in selling prices continued to be underpinned by pressures from the supply side."

@BusinessNewsMy