Kuala lumpur: Malaysia's Producer Price Index (PPI) declined by 3.4 per cent year-on-year in February 2026, following a 2.9 per cent contraction in the previous month.
According to BERNAMA News Agency, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the decline to continued weaknesses across key sectors, particularly agriculture, mining, and manufacturing. The agriculture, forestry, and fishing sector shrank by 8.7 per cent, influenced by a significant 15.1 per cent drop in the growing of perennial crops index. The mining sector also saw an 8.5 per cent contraction year-on-year, driven by declines in the extraction of natural gas and crude petroleum indices.
The manufacturing sector experienced a 2.7 per cent decrease year-on-year, mainly due to declines in the manufacture of coke and refined petroleum products and food products indices. In contrast, the water supply index rose by 11.9 per cent, while the electricity and gas supply index increased by 4.7 per cent.
On a month-on-month basis, the PPI edged down by 0.5 per cent in February 2026, reversing a 0.1 per cent increase in January 2026. The manufacturing sector fell by 0.8 per cent, influenced by declines in coke and refined petroleum products and food products indices. The water supply index decreased by 0.3 per cent, while electricity and gas supply slipped by 0.1 per cent.
However, the mining sector recorded a slower 0.4 per cent rise, supported by the crude petroleum index. The agriculture, forestry, and fishing sector rose by 1.0 per cent. All stages of processing continued to record negative year-on-year changes in February 2026. The crude materials for further processing index declined by seven per cent, due to a drop in non-food materials.
The intermediate materials, supplies, and components index contracted by 3.1 per cent, weighed down by processed fuel and lubricants. The finished goods index decreased by 1.1 per cent, due to a decline in capital equipment. On a month-on-month basis, the crude materials for further processing index increased by 0.7 per cent, while intermediate materials, supplies and components, and the finished goods indices fell by one per cent and 0.3 per cent, respectively.
A comparison with selected economies showed mixed trends in February 2026. Japan's PPI rose by 2.0 per cent year-on-year, easing from 2.3 per cent previously. China remained in deflation with its PPI declining by 0.9 per cent, marking the 41st consecutive month of contraction. Thailand's PPI also fell by 0.5 per cent, extending its decline for the 12th straight month, a trend similar to Malaysia.
On commodity prices, the World Bank reported that the average Brent crude oil price was US$71.11 per barrel in February 2026, up from US$66.77 a month ago, due to market conditions and geopolitical risks. However, on a year-on-year basis, prices were slightly lower than US$75.16 per barrel in February 2025. Meanwhile, Malaysia's average crude palm oil price rose to RM4,077.50 per tonne in February 2026 from RM4,018.50 in January 2026, marking the first monthly rise since November 2025, as reported by the Malaysian Palm Oil Board.