Malaysia’s producer prices fell 3.4% year-on-year in February 2026, extending a 2.9% decline in January and marking the 12th consecutive monthly drop. It was also the sharpest contraction since July of the previous year, as manufacturing costs weakened further (-2.7% vs -1.7%). This was largely driven by pronounced declines in coke and refined petroleum products (-10.6%) and food products (-5.2%).
Agricultural prices also fell at a slightly faster pace (-8.7% vs -8.3%), mainly reflecting a 15.1% drop in perennial crops. Meanwhile, mining prices continued to contract (-8.5% vs -11.7%), weighed down by lower prices for natural gas (-14.2%) and crude petroleum (-6.4%) extraction.
By contrast, electricity and gas prices rose, though at a marginally slower rate (4.7% vs 4.9%), while inflation in water supply accelerated (11.9% vs 10.2%). On a monthly basis, producer prices declined 0.5%, reversing the 0.1% increase recorded in January.
