The department of statistics Malaysia said this was “led by higher prices of primary commodities”.
Chief statistician Uzir Mahidin said the performance was driven by the mining index, which rose 23.3% compared to 34.3% recorded in January 2022.
February’s performance was also due to a higher increase in the agriculture, forestry, and fishing index at 17.7%, compared to 12.5% in January 2022.
The increase was mainly led by the indices of perennial crops at 23.3%, fishing at 9.4%, and animal production at 4.8%.
“The manufacturing index also increased 7.9% compared to 7% recorded in January 2022, supported by an increase in the indices of sub-sectors, namely the manufacture of refined petroleum products at 20.3%, manufacture of vegetable and animal oils and fats (18.6%) and manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics, and synthetic rubber in primary forms (13.1%),” Uzir said in a statement.
In addition, the indices of water supply, as well as electricity and gas supply, increased 1.4% and 0.8% respectively.
On a month-on-month comparison, Uzir said the PPI for local production increased 2% as opposed to 1.3% in the previous month.
“The increase was driven by a 6.9% increase in agriculture, forestry and fishing index, where it was underpinned by the higher price of oil palm fresh fruit bunches,” he added.
Uzir said the rise in crude oil and natural gas prices in February 2022 led to a 3.6% increase in the mining index.
Meanwhile, the manufacturing index increased 1.3%, contributed by the indices of sub-sectors like the manufacture of vegetable and animal oils and fats (3.2%), refined petroleum products (2.1%) and electronic components and boards (0.5%).
In addition, the electricity and gas supply index edged up 0.2%, while, the water supply index declined 0.2%.
On the PPI for local production by stage of processing, Uzir said the index of crude materials for further processing increased 17.7% in February 2022, supported by the indices of non-food materials (20.4%), as well as foodstuffs and feedstuffs (3.7%).
Commenting on the impact of the war between Russia and Ukraine on world primary commodity prices, Uzir said disruptions in the global supply chain for world primary commodities were expected to worsen.
He said prices for primary commodities and raw materials such as crude oil, semiconductors, fertilisers and natural gas were expected to keep rising. This is because these two countries are major producers of raw materials.
“Consequently, prices for end products will also increase, leaving consumers, especially those in the low-income household groups, feeling the pinch,” he said.