FX.co ★ Malaysia Producer Prices Drop the Most in 4 Months

In December 2025, Malaysia experienced a 2.7% year-on-year decrease in producer prices, accelerating from a 1.8% decline the month before. This marks the tenth consecutive month of deflation in producer prices and signifies the sharpest downturn since August. Notably, prices in the agriculture, forestry, and fishing sectors plummeted by 12.1% compared to a 9.7% decline in November, largely due to a significant reduction in perennial crop output, which decreased by 19.6%. The mining sector also experienced a faster decline, registering an 8.8% drop relative to a 7.2% decrease previously, impacted by reductions in both natural gas extraction (down 11.5%) and crude petroleum (down 7.8%). Manufacturing prices saw a shrinkage of 1.3% after a previous decline of 0.6%, influenced by a notable 6.2% fall in the prices of coke and refined petroleum products. On the other hand, inflation in the water supply sector increased to 10.9% from 10.1%, while electricity and gas supply prices remained steady at 4.1%. On a month-to-month basis, producer prices slipped by 0.2%, slightly improving from a 0.3% decrease in November, with contractions observed across three sectors.