Malaysia Producer Prices Drop the Most in 3 Months

Malaysia’s producer prices fell 2.7% year-on-year in December 2025, following a 1.8% decline in the previous month, marking the tenth consecutive month of producer price deflation. The latest reading also marked the steepest decline since August, with prices in agriculture, forestry, and fishing plunging 12.1% year-on-year, compared with a 9.7% drop in November, dragged down by weaker output of perennial crops (-19.6%). Mining prices also fell faster (-8.8% vs -7.2%), affected by declines in both natural gas extraction (-11.5%) and crude petroleum (-7.8%). Similarly, manufacturing prices contracted by 1.3% after a 0.6% fall, weighed down by a 6.2% decline in coke and refined petroleum products. In contrast, inflation in water supply accelerated (10.9% vs 10.1%), while electricity and gas supply prices were steady at 4.1%. On a monthly basis, producer prices fell 0.2%, following a 0.3% decline in November, amid contractions across three sectors.

Malaysia’s producer prices fell 1.8% year-on-year in November 2025, accelerating from a 0.1% decline in the previous month and marking the steepest drop since August. The latest reading extended a nine-month streak of contraction, with mining prices slumping (-7.2% vs -1.0% in October), dragged by weaker output of natural gas (-11.4%) and crude petroleum (-5.5%). Manufacturing prices remained soft (-0.6% vs -0.6%), weighed by a 6.6% fall in coke and refined petroleum products. Agriculture, forestry, and fishing swung sharply lower (-9.7% vs 2.7%), pressured by a 16.2% drop in perennial crop production. Meanwhile, inflation in electricity and gas supply eased (4.1% vs 4.3%), and water supply inflation also moderated (10.1% vs 10.8%). On a monthly basis, producer prices slipped 0.3%, following a flat reading in October, underscoring broad weakness across key sectors.

Malaysia’s producer prices fell 0.1% year-on-year in October 2025, easing from a 0.8% decline in the previous month and marking the mildest drop in an eight-month streak of decreases. The manufacturing sector shrank at a slower pace (-0.6% vs -2.1% in September), amid declines in the manufacture of coke and refined petroleum products (-5.1%) and in computers and electronics (-1.6%). Meanwhile, mining output remained weak (1.0% vs 1.1%), weighed by the extraction of crude petroleum (-2.2%). At the same time, the agriculture, forestry, and fishing sector expanded at a softer rate (2.7% vs 7.8%), mainly supported by a rise in the growing of perennial crops (10.8%). Electricity and gas supply rose modestly (4.3% vs 4.6%), while water supply growth accelerated (10.8% vs 9.1%). On a monthly basis, producer prices were unchanged, following a 0.5% increase in September.