Malaysia Producer Prices Surge on Higher Oil and Mining Costs

Malaysia's producer prices accelerated in August, driven by a surge in mining costs and higher crude oil and natural gas prices. The Producer Price Index (PPI) for local production rose 10.7 per cent from a year earlier, up from 9.7 per cent in July.

Mining was the biggest driver of the increase, with producer prices in the sector surging 41.2 per cent, accelerating from 30.5 per cent in July. Crude petroleum extraction jumped 49.8 per cent, while natural gas extraction rose 14.7 per cent.

Manufacturing producer prices also strengthened, rising 8.8 per cent year-on-year from 8.2 per cent in July. The increase was led by a 33.5 per cent gain in coke and refined petroleum products and a 12.4 per cent rise in computer, electronic and optical products.

The index for crude materials for further processing rose 24.8 per cent year-on-year, while intermediate materials, supplies and components increased 9.6 per cent. Finished goods prices rose 3.1 per cent.