Malaysia Producer Prices Drop the Most in 7 Months

Malaysia’s producer prices fell 3.4% year-on-year in February 2026, deepening from a 2.9% drop in the previous month and marking the 12th straight monthly decline. The latest reading was also the steepest contraction since last July, as manufacturing costs declined further (-2.7% vs -1.7%), mainly due to sharp decreases in coke & refined petroleum products (-10.6%) and food products (-5.2%). Also, agricultural prices slipped at a faster pace (-8.7% vs -8.3%), driven by a 15.1% drop in perennial crops. Moreover, mining prices continued to contract (-8.5% vs -11.7%), pressured by lower natural gas (-14.2%) and crude petroleum (-6.4%) extraction. In contrast, electricity and gas prices rose at a slightly softer pace (4.7% vs 4.9%), while water supply inflation accelerated (11.9% vs 10.2%). On a monthly basis, producer prices dipped 0.5%, reversing a 0.1% increase in January.

Malaysia’s producer prices declined by 2.9% year-on-year in January 2026, marking the sharpest decline since July and slipping further from a 2.7% drop in the previous month. The latest reading also marked the eleventh consecutive month of producer price deflation, with mining costs dropping further (-11.7% vs -8.8%) due to lower prices of crude petroleum (-11.8%) and natural gas extraction (-11.5%). Costs for agriculture, forestry, and fishing (-8.3% vs -12.1%) also continued to decline, affected mainly by a 14.7% fall in perennial crops. Additionally, manufacturing prices contracted by 1.7% after a 1.3% fall, weighed down by reductions in manufacture of coke & refined petroleum products (-5.8%) and manufacture of food products (-4.2%). Conversely, within the utility sector, producer inflation increased for electricity & gas (4.9% vs 4.1%) and water supply (10.2% vs 10.9%). On a monthly basis, producer prices rose by 0.1% in January, rebounding from a 0.2% fall in December.

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.