Malaysia’s Producer Inflation Reaches 10.7% as Mining Leads

Kuala Lumpur, 28 September 2026 – Malaysia’s producer prices rose 10.7% year on year in August, accelerating from 9.7% in July as mining costs climbed sharply, according to the producer-price report citing the Department of Statistics Malaysia. The Producer Price Index measures prices received by producers at an early stage of the supply chain. It is not the consumer inflation rate, and the increase does not mean every household item became 10.7% more expensive.

Mining recorded the largest annual increase at 41.2%, up from 30.5% in July. Within that sector, crude-petroleum extraction rose 49.8% and natural-gas extraction increased 14.7%. These energy-linked movements can have a disproportionate effect on the headline index because they reflect commodity prices at the production stage. Their eventual impact on consumers and company margins depends on contracts, subsidies, competition and how quickly costs are passed through.