Malaysia’s producer price index (PPI), which measures price changes at the producer level, went down further by 4.2% in June, after a 3.6% decline in the previous month, said the Department of Statistics Malaysia on Monday.
Its chief statistician Datuk Seri Dr Mohd Uzir Mahidin said all sectors registered year-on-year declines in June, with mining and manufacturing sectors emerging as the primary contributors to the overall negative trend of the index.
The mining sector declined by 8.0%, compared with -15% in May, affected by declines in the extraction of natural gas (-12.0%) and extraction of crude petroleum (-6.7%) indices.
At the same time, the manufacturing sector went down by 4.3%, against 3.0% in May, contributed by significant downturns in the manufacture of coke and refined petroleum products (-17.7%) and manufacture of computer, electronic and optical products (-7.8%) indices, he said in a statement on Monday.
The agriculture, forestry and fishing sector also recorded a slight decrease of 0.3% against 1.8% in May, with the animal production index declining by 2.9%.
For the utility sector, both electricity and gas supply and water supply posted marginal decreases of 0.2% last month.
On a month-on-month basis, the PPI for local production recorded a decline of 0.7% in June, following a 1.1% decrease in the previous month, Mohd Uzir said.
“The manufacturing sector went down by 1.2% (May: -0.5%) due to the manufacture of coke and refined petroleum products (-4.2%) and manufacture of food products (-3.0%) indices,” he said.
Similarly, the agriculture, forestry and fishing sector declined by 1.0% (May: -5.4%), weighed down by declines in the growing of perennial crops (-1.2%) and animal production (-0.8%) indices.
In contrast, the mining sector rose by 4.6%, rebounding from a 2.3% contraction in May, mainly driven by the extraction of crude petroleum, which rose by 7.0%.
Meanwhile, the water supply index edged up by 0.2%, while the electricity and gas supply index decreased by 0.2% in June.
The PPI for local production declined by 3.7% in the second quarter of 2025, compared with a 0.3% decrease in the first quarter of 2025.
The mining sector fell by 13.7%, followed by the manufacturing (-3.4%) and electricity and gas supply (-0.6%) sectors.
However, the agriculture, forestry and fishing sector increased by 1.4% and water supply inched up 0.2%.
Meanwhile, on a quarter-on-quarter basis, the PPI registered a decline of 2.3%, in contrast to the 1.0% increase recorded in the previous quarter, primarily driven by contractions in the agriculture, forestry and fishing, mining, and manufacturing sectors.
Source: theedgemalaysia