Overview
Malaysia’s Producer Price
Index continued to increase by 7.8 per cent in May 2026
- Malaysia’s
Producer Price Index (PPI) continued to increase by 7.8 per cent in May 2026,
after a 5.4 per cent increase in the previous month. All sectors recorded
increases in May 2026, with Mining sector continued to register a significant
increase of 52.6 per cent, following a 53.4 per cent rise in April 2026. This
double-digit increase was fueled by the Extraction of crude petroleum index,
which surged by 74.5 per cent. The Agriculture, forestry & fishing sector
went up by 8.9 per cent, compared to 2.7 per cent in the previous month. The
increase was supported by Fishing (15.2%) and Growing of perennial corps
(11.0%) indices. At the same time, the Manufacturing sector increased by 3.5 per cent, from a 1.1 per cent increase in April 2026, mainly due to Manufacture
of coke & refined petroleum products (12.3%) and Manufacture of computer,
electronic & optical products (5.7%) indices. Meanwhile, Water supply and
Electricity & gas supply sector went up by 11.2 per cent and 10.0 per cent,
respectively.
- On
a month-on-month basis, the PPI Local Production edged up by 1.1 per cent,
after a 3.2 per cent increase in the previous month. The Agriculture, forestry
& fishing sector rose by 0.3 per cent (April 2026: 2.4%), supported by the
Animal production (3.0%) index. The Manufacturing sector increased by 1.8 per
cent (April 2026: 1.4%), attributed to the Manufacture of coke and refined
petroleum products (6.8%). Meanwhile, the Water supply and Electricity &
gas supply and indices inclined by 0.6 per cent and 0.1 per cent, respectively.
In contrast, the Mining sector decreased by 2.8 per cent (April 2026: 19.8%),
weighed down by decreases in both Extraction of natural gas (-5.9%) and
Extraction of crude petroleum (-2.1%) indices.
- The
Crude materials for further processing index increased by 31.5 per cent (April
2026: 26.1%), mainly due to the Non-food materials (38.1%). The Intermediate
materials, supplies & components index went up by 3.0 per cent (April 2026:
0.8%), supported by Materials and components for construction (5.3%) and
Supplies (5.7%). Meanwhile, the Finished good index went up by 1.7 per cent (April 2026: 0.7%) driven by the Capital equipment (2.1%).
- On
a month-on-month basis, all stages of processing recorded increases in May
2026. The Intermediate materials, supplies & components rose by 1.6 per
cent. Similarly, Finished goods and Crude materials for further processing
index increased by 0.7 per cent and 0.4 per cent, respectively.
Technical Notes / Methodology
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