Producer prices in Malaysia dropped by 1.5 percent year-on-year in May 2019, the seventh straight month of yearly decline, following a 1.4 percent fall in a month earlier. Cost of mining declined (-0.4 percent vs 1.4 percent in April) and prices of agriculture, forestry & fishing fell further (-12.8 percent vs -11.9 percent). Also, cost of electricity & gas supply slowed (1.2 percent vs 1.5 percent). Meanwhile, prices decreased at a softer pace for manufacturing (-0.6 percent vs -0.8 percent) and water supply (-2.3 percent vs -2.6 percent). On a monthly basis, producer prices rose by 0.2 percent in May, slowing from a 0.6 percent gain in April. Producer Prices Change in Malaysia averaged 2.86 percent from 2002 until 2016, reaching an all time high of 22.50 percent in June of 2008 and a record low of -18.20 percent in July of 2009.
Producer Prices Change in Malaysia is expected to be -0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Malaysia to stand at 1.80 in 12 months time. In the long-term, the Malaysia Producer Prices Change is projected to trend around 2.50 percent in 2020, according to our econometric models.