According to the Department of Statistics Malaysia (DOSM), Malaysia's Producer Price Index (PPI), which is a benchmark for changes in the price of goods at the producer level, increased by 1.9% in April 2024, recording the highest figure since December 2022.
Last March, the country's IHPR increased by 1.6% on an annual basis.
In his latest monthly report on Local Production PPI for April 2024, the Head of Statistics, Dr Uzir Mahidin, said all sectors recorded an increase in the month.
He added that the mining sector continued to jump 10.0% when it was contributed by the increase in crude petroleum extraction (12.3%) and natural gas extraction index (3.5%).
The agriculture, forestry and fisheries sectors also increased by 5.4% with the crop growth index and animal husbandry increasing by 9.2% and 2.9% respectively.
In addition, the manufacturing sector recorded a small increase of 0.8% due to the computer, electronics and optical products manufacturing index (8.9%).
For the utility sector, the electricity and gas supply index increased by 1.0%. The water supply index recorded an increase of 7.2%.
The crude palm oil (CPO) futures contract on Bursa Malaysia hovered above RM4,000 per ton following a surge in crude oil prices at a time when other rival oil prices were rising.
Fresh bunch prices have also continued to rise since early 2024 leading to positive growth in the agriculture, forestry and fisheries sectors.
Crude oil price index is at the highest level worldwide. The prices of some commodities, especially energy resources, started to rise at the end of February 2022 following Russia's invasion of Ukraine.
Geopolitical tensions in the Middle East also pushed up the price of major commodities such as oil and gold.
According to the April 2024 Commodity Market Outlook, commodity prices are projected to moderate slightly in 2024 and 2025 which are expected to remain above pre-pandemic levels.
The main risk to commodity price projections concerns the escalating conflict in the Middle East which could result in significantly higher oil prices and global inflationary pressures.
