Affin Hwang Research said across the value chain, production players will be the first to benefit from higher oil prices due to their oil-producing fields.
KUALA LUMPUR: Local production costs as measured by the Producer Price Index jumped 10.2% in January 2017 from a year ago, driven by the mining sector and agriculture.
The Statistics Department said on Tuesday the highest increase was recorded by mining index (+42.8%) followed by agriculture, forestry & fishing (+33.4%), manufacturing (+5.6%) and electricity & gas supply (+3.2%).
However, the index for water supply remained unchanged.
“The PPI for local production rose by 2% in January 2017 compared to December 2016,” it said.
The higher costs was due to increases in three sectors where mining increased 6.3%, agriculture, forestry & fishing (+2.7%) and manufacturing (+1.5%). The water supply index fell 1.4% while electricity & gas supply was down 0.1%.
The department said the PPI for local production by stage of processing rose 2% in January 2017 from December due to increases in the indices for crude materials for further processing (+3.1%), intermediate materials, supplies and components (+2.1%) and finished goods (+0.4%).
It said when compared with a year ago, the PPI for local production for January 2017 increased by 10.2%.
This was due to increases in index for crude materials for further processing (+39.1%), intermediate materials, supplies and components (+6.0%) and finished goods (+0.4%).
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