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Malaysia's Producer Inflation Accelerates to 7.8% in May

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The Producer Price Index (PPI) for local production in Malaysia rose 7.8% year over year in May, according to data from the Department of Statistics Malaysia released on Monday.

The latest print accelerated from the 5.4% increase recorded in the previous month, and was the fastest expansion since June 2022. It also beat the Trading Economics forecast for a 7.2% growth.

The year-over-year momentum was driven by a rise in all sectors, particularly by the mining industry, which expanded 52.6%, and the agriculture, forestry and fishing sector, which jumped 8.9%.

The manufacturing sector increased by 3.5%, while the water supply and electricity and gas supply sectors went up by 11.2% and 10.0%, respectively.

On a month-over-month basis, the headline PPI rose 1.1% compared with the 3.2% expansion in the previous month.

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