malaysiang
KUALA LUMPUR, MIDF Amanah Investment Bank Bhd expects selling prices in Malaysia to remain stable following a decline in the producer price index (PPI) in September 2024.
Data released by the Department of Statistics Malaysia on Monday indicated that Malaysia’s PPI, which measures price changes at the producer level, fell by 2.1 per cent year-on-year (y-o-y) last month, marking the first decrease since January 2024.
This decline was primarily driven by a significant cooldown in the PPI for the mining sector, which dropped by 16.1 per cent y-o-y, largely due to reductions in producer prices for the extraction of crude petroleum (down 18.6 per cent y-o-y) and natural gas (unchanged at 7.9 per cent y-o-y), stemming from lower commodity prices.
“We opine that the deflation in producer prices indicates local production costs are more influenced by external factors, such as movements in commodity prices.
“In other words, domestic policy changes have a limited impact on cost pressures thus far,” MIDF said in a n
ote today.
With PPI inflation remaining under control, the investment bank expects Bank Negara Malaysia to maintain the overnight policy rate (OPR) at the current level of three per cent.
Source: BERNAMA News Agency
