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Malaysia’s Producer Price Index Declines by 0.8 Percent in September


Kuala lumpur: Malaysia’s Producer Price Index (PPI), which measures price changes at the producer level, fell by 0.8 percent in September 2025, easing from a 2.8 percent decline in the previous month.



According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) attributed the decline to various sectoral performances.



Its chief statistician, Datuk Seri Dr. Mohd Uzir Mahidin, highlighted that the manufacturing sector contracted by 2.1 percent in September 2025, a less severe contraction compared to August 2025’s 4.0 percent decline. This sector’s performance significantly impacted the overall index.



The decline in the manufacturing sector was primarily due to lower indices in the manufacture of coke and refined petroleum products, which fell by 8.9 percent, and the manufacture of computer, electronic, and optical products, which decreased by 4.6 percent.



Conversely, all other sectors recorded increases during the month. The agriculture, forestry, and fishing sector saw a growth of 7.8 percent, up from August 2025’s 7.3 percent, driven by an 11.7 percent rise in the growing of perennial crops index.



The mining sector increased by 1.1 percent, rebounding from a 3.4 percent decline in the previous month, supported by an 8.9 percent rise in the extraction of natural gas index.



The utilities sector also showed an upward trend, with the electricity and gas supply index climbing 4.6 percent, and the water supply index rising by 9.1 percent.



On a month-on-month basis, the PPI for local production rose by 0.5 percent in September 2025, following a 0.1 percent increase in August. The agriculture, forestry, and fishing sector expanded by 2.1 percent, mainly due to higher indices for animal production at 2.6 percent and perennial crops at 2.2 percent.



The mining sector also witnessed a 1.1 percent increase, supported by an 11.1 percent climb in the extraction of natural gas index. The manufacturing sector recorded a 0.3 percent increase, attributed to the manufacture of coke and refined petroleum products, which rose by 1.8 percent, and the manufacture of food products, which increased by 0.9 percent.



Additionally, the water supply and electricity and gas supply sectors saw increases of 4.8 percent and 0.1 percent, respectively.

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