28.08.202504:17:53UTC+00Malaysia Producer Prices Down 3.8% in July

Producer prices in Malaysia declined by 3.8% in July 2025 compared to the previous year, following a 4.2% decrease in June. This represents the fifth consecutive month of falling prices, largely due to deflation in the mining sector, which declined by 8.7% after an 8.0% drop in June. This decline was primarily influenced by reduced extraction activities in crude petroleum, which fell by 9.8%, and natural gas, which decreased by 4.7%. The manufacturing sector also experienced a contraction of 4.0%, following a 4.3% decrease in the previous month. This was affected by a significant drop in coke and refined petroleum products, which fell by 15.7%, and in the computer, electronic, and optical products category, which saw a decline of 7.6%. Conversely, the agriculture, forestry, and fishing sector recovered, posting a 1.1% growth after a 0.3% decrease, supported by perennial crops, which increased by 3.1%. Meanwhile, the electricity and gas supply sector grew by 4.0%, compared to a previous 0.2% drop, though water supply saw a slight decrease of 0.1%. On a month-to-month basis, producer prices rose by 0.3% in July, recovering from a 0.7% decline in June. This growth was driven by increases in agriculture (up 2.5%), electricity and gas (up 3.4%), and water supply (up 0.9%), which more than compensated for a slight 0.1% fall in manufacturing and stagnation in mining activity.