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       PETALING JAYA: The country’s Producer Price Index (PPI), which measures the costs of goods at factory gate, increased 9.2% in January this year compared with a decrease of 0.1% in January 2021.

       The increase was lower than a 10% year-on-year (y-o-y) incline registered in December last year, according to the Statistics Department.

       Chief Statistician Datuk Seri Mohd Uzir Mahidin in a statement said: “The increase in the PPI local production in January 2022 was supported by a mining index that rose 34.3% from a decline of 28.3% recorded in January last year.

       “The prices of crude oil and natural gas that registered an increase of 33.5% and 39% respectively also contributed to the increase.“

       The index of agriculture, forestry and fishing increased moderately at 12.5% as opposed to an increase of 22.6% recorded in January 2021. The increase was due to the incline in the indices of growing of perennial crops (14.6%) and fishing (13.3%).

       Manufacturing index also registered an increase of 7% (January 2021: 1.1%), largely due to the increase in the indices of sub-sectors namely manufacture of refined petroleum products (19.2%), manufacture of vegetable and animal oils and fats (17%) and manufacture of electronic components and boards (0.4%).In addition, the indices of other sub-sectors such as manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms, manufacture of basic iron and steel and manufacture of plastics products also inclined.

       Similarly, the indices of water supply and electricity and gas supply increased 1.2% and 0.9% respectively.

       In terms of a month-on-month comparison, Uzir said: “In January 2022, the PPI for local production registered an increase of 1.3% after posting a decline for the first time in 14 months in December 2021.

       “The increase was supported by a marginal incline of 4.5% in agriculture, forestry and fishing index.

       “The increase in this sector was mainly attributed to a rise in the price of oil palm fresh fruit bunches that recorded an increase of 7.1%.“Mining index also registered an increase of 3.1% in January 2022.

       The price of crude oil rose in the same month after recording a decline in two months in a row, underpinned by demand that outstripped supply.

       It is expected that demand on this commodity would continue to be strong despite worries on the spread of Omicron as many countries are reluctant to implement strict restrictions again, according to Uzir.

       Comparing the inflation at the producer level in several other countries, the PPI in China increased 9.1% in January, down from 10.3% y-o-y increase recorded in December 2021. The PPI in Taiwan posted an increase of 10.8% as compared to an incline of 12.5% registered in December 2021.

       The PPI in the United States moved up 9.7% y-o-y against 9.8% in December 2021.