Kuala lumpur: Malaysia’s Producer Price Index (PPI), which measures price changes at the producer level, experienced a further decline of 4.2 percent year-on-year in June 2025, following a 3.6 percent decline in May, as reported by the Department of Statistics Malaysia (DOSM).
According to BERNAMA News Agency, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that all sectors registered year-on-year declines in June, with the mining and manufacturing sectors being the main contributors to the overall negative trend. The mining sector saw an 8.0 percent fall, following a significant 15 percent contraction in May. This decline was influenced by decreased indices in the extraction of natural gas (-12.0 percent) and crude petroleum (-6.7 percent).
The manufacturing sector also recorded a drop of 4.3 percent, worsening from a 3.0 percent dip in May. This downturn was driven by declines in the manufacture of coke and refined petroleum products (-17.7 percent) and computer, electronic, and optical products (-7.8 percent).
The agriculture, forestry, and fishing sector saw a slight decrease of 0.3 percent, compared to a 1.8 percent decrease in May, with the animal production index declining by 2.9 percent. The utility sector experienced marginal decreases, with both electricity and gas supply and water supply falling by 0.2 percent last month.
On a month-on-month basis, the PPI for local production declined by 0.7 percent in June, following a 1.1 percent decrease in the previous month. The manufacturing sector fell by 1.2 percent, influenced by downturns in the manufacture of coke and refined petroleum products (-4.2 percent) and food products (-3.0 percent).
The agriculture, forestry, and fishing sector declined by 1.0 percent, following a 5.4 percent drop in May, weighed down by decreases in the growing of perennial crops (-1.2 percent) and animal production (-0.8 percent). In contrast, the mining sector experienced a 4.6 percent rise, recovering from a 2.3 percent contraction in May, driven by a 7.0 percent increase in crude petroleum extraction.
The water supply index showed a slight increase of 0.2 percent, while the electricity and gas supply index decreased by 0.2 percent in June.
For the second quarter of 2025, the PPI for local production decreased by 3.7 percent compared to a 0.3 percent decrease in the first quarter. The mining sector fell by 13.7 percent, with declines also seen in the manufacturing (-3.4 percent) and electricity and gas supply (-0.6 percent) sectors. However, the agriculture, forestry, and fishing sector increased by 1.4 percent, and water supply inched up by 0.2 percent.
On a quarter-on-quarter basis, the PPI registered a decline of 2.3 percent, contrasting with a 1.0 percent increase recorded in the previous quarter, primarily driven by contractions in the agriculture, forestry, and fishing, mining, and manufacturing sectors.