Malaysia’s Producer Price Index (PPI) continued its upward momentum, rising 7.8% in May 2026 compared with a 5.4% increase in the previous month, driven largely by a sustained surge in the mining sector alongside broad-based gains across other key industries, according to Department of Statistics Malaysia (DOSM).
The mining sector recorded a 52.6% increase, slightly easing from 53.4% in April, with the extraction of crude petroleum index surging 74.5%, remaining the dominant driver of producer price inflation. The agriculture, forestry and fishing sector also strengthened, rising 8.9% compared with 2.7% previously, supported by gains in fishing at 15.2% and growing of perennial crops at 11.0%.
Manufacturing continued to edge higher at 3.5%, up from 1.1% in April, underpinned by higher prices in the manufacture of coke and refined petroleum products at 12.3% and computer, electronic and optical products at 5.7%. Water supply and electricity and gas supply sectors rose 11.2% and 10.0% respectively.
On a month-on-month basis, PPI local production increased 1.1%, moderating from 3.2% in April. Manufacturing rose 1.8% while agriculture gained 0.3%, supported by animal production at 3.0%. In contrast, the mining sector fell 2.8% after a sharp 19.8% rise previously, weighed down by declines in both natural gas and crude petroleum extraction.
By stage of processing, crude materials for further processing surged 31.5% year-on-year, driven by non-food materials at 38.1%. Intermediate materials rose 3.0% while finished goods increased 1.7%, reflecting steady cost pressures across production layers. Monthly, all stages recorded gains, with intermediate materials up 1.6%, finished goods rising 0.7% and crude materials increasing 0.4%.
