Malaysia's producer inflation reaches 12 per cent in September

Malaysia recorded producer inflation of 12 per cent in September, up from August's 10.7 per cent, the Statistics Department said. Higher mining and manufacturing prices drove the acceleration as global crude oil prices surged.

For the third quarter of 2026, the producer price index increased 10.8 per cent, compared with 7.4 per cent in the second quarter. Mining prices climbed 41.9 per cent and manufacturing prices rose 8.8 per cent. Quarterly growth in the overall index slowed to 2.8 per cent from 6.8 per cent, with manufacturing providing the main support.

Mining led September's annual sector increases at 54.1 per cent, against 41.2 per cent in August. Prices for crude petroleum extraction jumped 74.2 per cent. Manufacturing inflation reached 9.4 per cent from 8.8 per cent, including increases of 35 per cent for coke and refined petroleum products and 12.9 per cent for computer, electronic and optical products.

Agriculture, forestry and fishing prices increased 2.9 per cent annually, easing from 4.6 per cent, while animal production prices rose 11.9 per cent. Electricity and gas supply prices were up 5.5 per cent, and water supply prices increased 3.2 per cent.

Compared with August, mining prices rose 10.3 per cent in September, with crude petroleum extraction up 13.6 per cent. Manufacturing prices increased 0.9 per cent, while agriculture, forestry and fishing recorded a 0.5 per cent rise.

Global crude oil reached US$116.80 per barrel in September, compared with US$90.90 in August. Crude palm oil rose to RM4,614.50 per tonne from RM4,548.50. The department said higher prices for both commodities continued to put pressure on commodity-related industries.