KUALA LUMPUR, Jan 28 — 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 the Department of Statistics Malaysia.
Chief statistician, Datuk Seri Dr Mohd Uzir Mahidin said the agriculture, forestry and fishing sector decreased by 12.1 per cent from 9.7 per cent in November 2025, mainly due to a 19.6 per cent decline in the growing of perennial crops index.
“The mining sector went down by 8.8 per cent from 7.2 per cent in November 2025, affected by declines in both the extraction of natural gas (-11.5 per cent) and the extraction of crude petroleum (-7.8 per cent) indices.
“The manufacturing sector also contracted by 1.3 per cent from 0.6 per cent in November 2025, with the manufacture of coke and refined petroleum products index declining by 6.2 per cent,” he said in the December 2025 PPI report for local production released today.
Meanwhile, the electricity and gas supply and water supply sectors increased by 4.1 per cent and 10.9 per cent, respectively.
Mohd Uzir said on a month-on-month basis, the PPI for local production recorded a marginal decline of 0.2 per cent in December 2025 from 0.3 per cent 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 and the water supply index increased 0.4 per cent, while the electricity and gas supply index declined by 0.2 per cent during the month,” he added.
Elaborating further on the PPI local production by stage of processing, Mohd Uzir noted that all stages of processing posted negative year-on-year changes in December 2025.
He said 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. In contrast, the intermediate materials, supplies and components index remained unchanged in December 2025,” according to DoSM.
Quarter-on-quarter, the PPI local production continued to ease by 1.5 per cent in the fourth quarter of 2025 (Q4 2025), from a 2.4 per cent decrease in Q3 2025 due to the decline 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,” said Mohd Uzir.
Overall, he noted that PPI local production declined 2.0 per cent in 2025, following an increase of 0.3 per cent in 2024.
Meanwhile, DoSM said that aPPI in several economies showed mixed trends in December 2025, with Japan’s PPI increasing 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, following a 1.6 per cent decline in the previous month. This marked the tenth straight month of year-on-year negative producer inflation, a similar trend in Malaysia,” it said.
Looking at selected Malaysian commodity prices, Mohd Uzir said that according to the World Bank, the average Brent crude oil price in December 2025 stood at US$62.72 per barrel, declining from US$63.61 per barrel in the previous month.
“The decline in global crude oil prices during the month was primarily attributed to persistent oversupply conditions and weak demand growth across global markets,” he said.
Meanwhile, he said Malaysia’s oil palm fresh fruit bunch and crude palm oil (CPO) prices also declined in December 2025, and 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 during the month. Inventories are also expected to remain elevated, which is likely to continue to cap price increases,” he added. — Bernama
