Malaysia’s Producer Price Index Shows Slower Decline in July 2025

Kuala lumpur: Malaysia's Producer Price Index (PPI) recorded a slower decrease of 3.8 per cent in July 2025 from a 4.2 per cent decline in the previous month, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that the decrease in July 2025 was primarily due to the mining and manufacturing sectors, which have been on a downward trend since the start of the year. The mining sector decreased by 8.7 per cent, influenced by reduced indices in crude petroleum extraction (-9.8 per cent) and natural gas extraction (-4.7 per cent).

In the manufacturing sector, there was a decline of 4.0 per cent, with notable drops in the manufacture of coke and refined petroleum products (-15.7 per cent) and the manufacture of computer, electronic, and optical products (-7.6 per cent). Conversely, the agriculture, forestry, and fishing sector saw an increase of 1.1 per cent, supported by the growing of perennial crops index at 3.1 per cent.

The electricity and gas supply sector experienced a 4.0 per cent rise, while the water supply sector posted a slight decline of 0.1 per cent in July 2025. On a month-to-month basis, the PPI for local production increased by 0.3 per cent, recovering from a 0.7 per cent decrease in the previous month. The agriculture, forestry, and fishing sector rose by 2.5 per cent, driven by a 4.6 per cent increase in the growing of perennial crops index.

The utility sectors, including electricity and gas supply and water supply, saw increases of 3.4 per cent and 0.9 per cent, respectively. However, the mining sector remained unchanged in July 2025, following a 4.6 per cent increase in the prior month. The manufacturing sector recorded a marginal decrease of 0.1 per cent, influenced by declines in the manufacture of computer, electronic, and optical products (-0.5 per cent) and the manufacture of food products (-0.4 per cent).

Looking at selected countries, Malaysia's chief statistician noted mixed trends in the PPI for July 2025. The United States' PPI increased by 3.3 per cent, Japan experienced a 2.6 per cent expansion, while China and Thailand saw declines of 3.6 per cent and 4.2 per cent, respectively.