Malaysia’s producer prices rose 7.8% year-on-year in May 2026, up from 5.4% in April and marking a third consecutive month of gains. This was the fastest increase since June 2022, as producer-level cost pressures intensified amid ongoing disruptions related to the Middle East conflict.
Manufacturing prices accelerated (3.5% vs 1.1% in April), driven by higher costs for coke and refined petroleum products (12.3%) and for computer, electronic and optical products (5.7%). The mining sector also remained robust (52.6% vs 53.4%), supported by a strong rise in crude petroleum extraction (74.5%).
The agriculture sector strengthened (8.9% vs 2.7%), buoyed by gains in fishing (8.9%) and perennial crops (11.0%). Utilities continued to add upward pressure, with the water supply index staying high (10.0% vs 10.8%), while electricity and gas prices accelerated (11.2% vs 10.8%).
On a monthly basis, producer prices increased 1.1% in May, a sharp slowdown from the 3.2% rise recorded in April.
