Overview

The Producer Price Index decreased by 2.0 per cent, while Services Producer Price Index increased by 0.9 per cent in 2025

Producer Price Index (PPI) Local Production

• The PPI Local Production declined by 2.0 per cent in 2025, compared to an increase of 0.3 per cent in 2024. The annual decline was mainly attributed to contractions in Mining (-8.2%) and Manufacturing (-2.1%) sectors. Meanwhile, the Agriculture, forestry and fishing increased by 3.2 per cent, while Water supply and Electricity and gas supply sectors recorded increases of 4.7 per cent and 1.9 per cent, respectively.
• The Agriculture, forestry and fishing sector recorded a 3.2 per cent increase in 2025, following an increase of 7.9 per cent in 2024. This was primarily due to the Growing of perennial crops index, which increased by 5.3 per cent (2024: 14.1%), largely due to the Oil palm fresh fruit bunches index (5.4%). The remaining subsectors recorded increases in 2025 were Growing of non-perennial crops (2.0%), Fishing (1.6%), Aquaculture (0.2%) and Animal production (0.1%). In contrast, Logging index declined by 6.9 per cent.
• The Mining sector recorded a decline of 8.2 per cent in 2025, following a 2.0 per cent decrease in the previous year. The Extraction of crude petroleum index fell by 8.6 per cent (2024: -2.8%). Besides, the Extraction of natural gas index recorded a decrease of 6.9 per cent (2024: -0.2%). Meanwhile, the Manufacturing sector continued to record a decline of 2.1 per cent in 2025, after a 0.3 per cent decrease in the previous year. The decline was due to a significant drop in the Manufacture of coke and refined petroleum products index (-12.8%). The Manufacture of chemicals and chemical products and Manufacture of computer, electronic and optical products index also posted a decline of 5.0 per cent and 4.4 per cent, respectively. However, these declines were partially offset by the increase in the Manufacture of food products by 5.8 per cent.
• All stages of processing recorded decreases in 2025. The Crude materials for further processing index decreased by 3.7 per cent (2024: 0.7%). Meanwhile, the Intermediate materials, supplies and components index declined by 1.8 per cent (2024: -0.5%) and the Finished goods index decreased by 1.2 per cent in 2025 (2024: 1.9%).

Services Producer Price Index (SPPI)

• The SPPI averaged 116.9 points in 2025, an increase of 0.9 per cent, compared to 0.7 per cent in 2024. The increase was primarily driven by Accommodation and food & beverage service activities (3.4%), Arts, entertainment & recreation index (1.8%) and Education (1.3%) indices. Other subsectors that recorded increases were Health (0.7%), Professional (0.6%) and Real estate activities (0.2%) indices. In contrast, the Transportation index declined by 0.4 per cent, followed by the Information & Communication index, which recorded a slight decrease of 0.1 per cent.

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