Malaysia’s Producer Price Index (PPI) for local production rose 10.7% year-on-year in August 2026, accelerating from a 9.7% increase in July, driven mainly by a sharp rise in mining prices, according to the Department of Statistics Malaysia (DOSM).
The Mining index jumped 41.2% in August, compared with 30.5% in the previous month, led by a 49.8% increase in crude petroleum extraction and a 14.7% rise in natural gas extraction.
Manufacturing prices increased 8.8%, up from 8.2% in July, supported by a 33.5% increase in coke and refined petroleum products and a 12.4% rise in computer, electronic and optical products.
The Agriculture, forestry and fishing index rose 4.6%, moderating from 7.2% in July, with animal production increasing 13.9%.
Utility-related prices also remained higher, with the Water Supply index rising 7.8% and Electricity and Gas Supply increasing 6.4%.
On a month-on-month basis, the PPI rose 1.0% in August, compared with a 0.7% increase in July.
Mining again recorded the strongest monthly increase at 6.7%, supported by gains in natural gas and crude petroleum extraction. Agriculture, forestry and fishing rose 0.8%, while manufacturing increased at a slower pace of 0.4%.
By stage of processing, all three categories recorded year-on-year increases.
The index for crude materials for further processing rose 24.8%, led by non-food materials, while intermediate materials, supplies and components increased 9.6%, supported by processed fuel and lubricants.
Finished goods prices increased 3.1%, with capital equipment rising 4.3%.
On a monthly basis, crude materials for further processing increased 2.3%, intermediate materials rose 0.9%, while finished goods edged up 0.1%.
