Malaysia's Producer Prices Rise in September, Driven by the Mining Sector

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Producer prices rise in September

Highlights

Malaysia's producer price index (PPI) rose 12.0% year on year in September 2026, driven by a 54.1% surge in the mining sector.
Malaysia's monthly PPI rose 1.6% in September, above August's 1.0%, as mining surged 10.3%, driven by a 13.6% increase in crude petroleum prices.
In the third quarter of 2026, the PPI rose 10.8% year on year, with mining up 41.9% and manufacturing up 8.8%, although quarter-on-quarter growth slowed to 2.8%.

This article was translated from the original. Read the original version by our correspondent here.

September increase and key sector drivers

As reported by The Edge Malaysia, citing the Department of Statistics Malaysia, the producer price index (PPI) for Malaysia's domestic production rose 12.0% in September 2026, compared with 10.7% in August 2026.

Year on year, the mining sector recorded a sharp increase of 54.1% in September, up from 41.2% in the previous month. The department said the rise was driven mainly by crude petroleum extraction, which increased 74.2%.

The PPI measures changes in the prices received by domestic producers for their goods and services before they reach consumers. DOSM also reported that manufacturing rose 9.4%, compared with 8.8% in August, driven mainly by the manufacture of coke and refined petroleum products, up 35.0%, and the manufacture of computer, electronic and optical products, up 12.9%.

Agriculture, forestry and fishing rose by a more modest 2.9%, compared with 4.6% in the previous month, with animal production increasing 11.9%. Utilities also recorded increases, with electricity and gas supply rising 5.5% and water supply up 3.2%.

Monthly trend and third-quarter overview

On a monthly basis, the PPI for domestic production rose 1.6% in September, above the 1.0% increase in August. The mining sector rose 10.3%, compared with 6.7% in August, driven by a 13.6% increase in the crude petroleum extraction index.

In the third quarter, the PPI for domestic production rose 10.8%, compared with a 7.4% increase in the previous quarter. DOSM said the rise was driven by all sectors, particularly mining, up 41.9%, and manufacturing, up 8.8%.

However, quarter on quarter, the PPI rose 2.8%, slower than the 6.8% increase in the second quarter, with manufacturing, which expanded 3.6%, providing the main support.

In our earlier report on oil prices surging to around $110 a barrel, we highlighted how the increase added to inflation concerns and could complicate the Fed's monetary policy outlook. The article also explained that inflation risks and higher financing costs are increasing market uncertainty, prompting investors to become more cautious about risk assets.

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