Kuala lumpur: Malaysia's producer price index (PPI), which measures price changes at the producer level, continued to decline by 2.7 per cent in December 2025, following a 1.8 per cent decrease in the previous month.
According to BERNAMA News Agency, the Department of Statistics Malaysia (DoSM) reported these findings.
Chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, highlighted that the agriculture, forestry, and fishing sector saw a decrease of 12.1 per cent from 9.7 per cent in November 2025, largely driven by a 19.6 per cent decline in the growing of perennial crops index. The mining sector dropped by 8.8 per cent from 7.2 per cent in November 2025, with reductions observed in both the extraction of natural gas (-11.5 per cent) and crude petroleum (-7.8 per cent) indices. Additionally, the manufacturing sector contracted by 1.3 per cent from 0.6 per cent in November 2025, due to a 6.2 per cent decline in the manufacture of coke and refined petroleum products index.
Meanwhile, the electricity and gas supply and water supply sectors recorded increases of 4.1 per cent and 10.9 per cent, respectively. On a month-on-month basis, the PPI for local production marginally declined by 0.2 per cent in December 2025, compared to a 0.3 per cent decline in November 2025. The mining sector decreased by 2.0 per cent, and the agriculture, forestry, and fishing sector also declined by 1.1 per cent. Conversely, the manufacturing sector increased marginally by 0.1 per cent, the water supply index rose by 0.4 per cent, and the electricity and gas supply index declined by 0.2 per cent during the month.
Mohd Uzir elaborated on the PPI local production by stage of processing, noting that all stages posted negative year-on-year changes in December 2025. The crude materials for further processing index decreased by 8.3 per cent, the intermediate materials, supplies, and components index eased by 1.6 per cent, and the finished goods index declined by 0.7 per cent. On a month-on-month basis, the crude materials for further processing index decreased by 0.8 per cent, while the finished goods index dropped by 0.2 per cent. The intermediate materials, supplies, and components index remained unchanged in December 2025.
Quarter-on-quarter, the PPI local production continued to ease by 1.5 per cent in the fourth quarter of 2025 (4Q 2025), from a 2.4 per cent decrease in 3Q 2025. This was due to declines in the agriculture, forestry, and fishing (-6.7 per cent), mining (-5.7 per cent), and manufacturing (-0.8 per cent) sectors. However, the electricity, as well as gas and water supply sectors, recorded increases of 4.1 per cent and 10.6 per cent, respectively. Overall, Mohd Uzir noted that PPI local production declined 2.0 per cent in 2025, following an increase of 0.3 per cent in 2024.
DoSM also stated that PPI in several economies showed mixed trends in December 2025. Japan's PPI increased by 2.4 per cent year-on-year, while China remained in producer deflation, with its PPI declining by 1.9 per cent. Similarly, Thailand's PPI decreased by 1.8 per cent, marking the tenth consecutive month of year-on-year negative producer inflation, mirroring the trend in Malaysia.
In terms of selected Malaysian commodity prices, Mohd Uzir, citing the World Bank, stated that the average Brent crude oil price in December 2025 stood at US$62.72 per barrel, a decline from US$63.61 per barrel in the previous month. The decline in global crude oil prices was attributed to persistent oversupply conditions and weak demand growth across global markets. Malaysia's oil palm fresh fruit bunch and crude palm oil (CPO) prices also declined in December 2025. Data from the Malaysian Palm Oil Board showed that the average price of CPO decreased to RM4,042.50 per tonne, down from RM 4,089.50 per tonne in November 2025. The decrease in the average price of CPO was mainly due to rising palm oil inventories, which are expected to remain elevated and continue to cap price increases.