Producer prices in Malaysia fell by 3.8% year-on-year in July 2025, easing from a 4.2% drop in the previous month. This marked the fifth consecutive month of decline, mainly driven by deflation in the mining sector (-8.7% vs -8.0% in June), pressured by lower crude petroleum (-9.8%) and natural gas (-4.7%) extraction. The manufacturing sector also contracted by 4.0% (vs -4.3%), weighed down by coke & refined petroleum products (-15.7%) and computer, electronic & optical products (-7.6%). In contrast, the agriculture, forestry & fishing sector rebounded by 1.1% (vs -0.3%), supported by perennial crops (+3.1%), while electricity & gas supply grew 4.0% (vs -0.2%) and water supply slipped 0.1%. On a monthly basis, producer prices rose 0.3% in July, reversing a 0.7% decline in June, with gains in agriculture (+2.5%), electricity & gas (+3.4%), and water supply (+0.9%) offsetting a slight fall in manufacturing (-0.1%) and flat mining activity.