FX.co ★ Malaysia Producer Inflation at 4-Year High

Malaysia’s producer prices rose 9.7% year-on-year in July 2026, up from 9.2% in June, marking a fifth consecutive month of gains and the fastest annual increase since June 2022. The acceleration reflected mounting cost pressures on producers as supply disruptions related to the Middle East conflict continued.

Manufacturing prices picked up (8.2% vs 7.2% in June), led by sharper cost increases for coke & refined petroleum products (30.4%) and computer, electronic & optical products (10.5%). The mining sector also gathered pace (30.5% vs 29.0%), underpinned by stronger growth in crude petroleum extraction (39.6%).

By contrast, price growth in agriculture eased (7.2% vs 9.1%), even as prices for animal production (11.3%) and perennial crops (6.2%) continued to rise. Price gains in utilities also moderated, though both water supply (10.2% vs 12.7%) and electricity & gas (6.7% vs 10.2%) still posted robust increases.

On a month-on-month basis, producer prices advanced 0.7% in July, following a 0.6% increase in June.