Producer prices in Malaysia shrank by 4.2% year-on-year in June 2025, following a 3.6% decline in the previous month. This marked the fourth consecutive month of decline and the sharpest drop since June 2023, primarily driven by an 8.0% decrease in the mining sector (vs -15.0% in May), with significant reductions in natural gas (-12.0%) and crude petroleum (-6.7%). The manufacturing sector also contracted by 4.3% (vs -3.0%), weighed down by steep declines in the manufacture of coke and refined petroleum products (-17.7%) and computer, electronic, and optical products (-7.8%). Similarly, both the electricity and gas supply sectors and the water supply sector fell slightly by 0.2%. Meanwhile, the agriculture, forestry, and fishing sector declined by 0.3% (vs +1.8%), mainly due to a 2.9% drop in animal production. On a monthly basis, producer prices fell by 0.7% in June, following a 1.1% decrease in the previous month.