Malaysia’s producer prices fell by 2.9% year-on-year in January 2026, the steepest decline since July and deeper than the 2.7% drop recorded in December. This was the eleventh consecutive month of producer price deflation. Mining costs continued to weaken (-11.7% vs -8.8% previously), reflecting lower prices for crude petroleum (-11.8%) and natural gas extraction (-11.5%). Prices in agriculture, forestry, and fishing also remained in decline (-8.3% vs -12.1%), driven primarily by a 14.7% decrease in perennial crops. Manufacturing prices contracted further, down 1.7% after a 1.3% fall in the prior month, pressured by lower prices in the manufacture of coke and refined petroleum products (-5.8%) and food products (-4.2%). In contrast, producer prices in the utilities sector rose, with inflation accelerating in electricity and gas (4.9% vs 4.1%) and remaining elevated in water supply (10.2% vs 10.9%). On a monthly basis, producer prices edged up 0.1% in January, recovering from a 0.2% decline in December.