Producer prices in Malaysia rose by 0.7 percent year-on-year in October 2018, after a 0.2 percent fall in a month earlier. It marked the first increase in producer inflation since July, driven by rises in cost of mining (30.6 percent vs 28.9 percent in September) and electricity & gas supply (1.0 percent vs 1.0 percent). Meanwhile, cost continued to fall for manufacturing (-0.7 percent vs -1.7 percent) and agriculture, forestry & fishing (-17.6 percent vs - 16.4 percent). At the same time, cost of water supply declined 1.0 percent, following a 0.4 percent growth in a month earlier. On a monthly basis, producer prices went up 0.3 percent, compared to a 1.2 percent jump in September. Producer Prices Change in Malaysia averaged 2.86 percent from 2002 until 2016, reaching an all time high of 22.50 percent in June of 2008 and a record low of -18.20 percent in July of 2009.
Producer Prices Change in Malaysia is expected to be 2.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Malaysia to stand at 1.60 in 12 months time. In the long-term, the Malaysia Producer Prices Change is projected to trend around 2.50 percent in 2020, according to our econometric models.