KUALA LUMPUR: Malaysia’s Producer Price Index (PPI) for local production rose 10.7% year-on-year in August 2026, accelerating from a 9.7% increase in July, according to the Department of Statistics Malaysia (DOSM).

In a statement, DOSM said the mining sector recorded the strongest increase, rising 41.2% in August compared with 30.5% in the preceding month.

The increase was mainly driven by the extraction of crude petroleum, which surged 49.8%, while the extraction of natural gas rose 14.7%.

The manufacturing sector increased 8.8%, compared with 8.2% in July, supported by a 33.5% increase in the manufacture of coke and refined petroleum products and a 12.4% rise in the manufacture of computer, electronic and optical products.

Meanwhile, the agriculture, forestry and fishing sector rose 4.6%, moderating from 7.2% in July, with animal production increasing 13.9%.

The water supply index rose 7.8%, while electricity and gas supply increased 6.4%.

On a month-on-month basis, the PPI Local Production increased 1.0% in August, compared with a 0.7% increase in July.

The monthly increase was primarily driven by the mining sector, which climbed 6.7%, accelerating from 1.1% in July. The extraction of natural gas rose 8.9%, while crude petroleum increased 6.1%.

Agriculture, forestry and fishing rose 0.8% month-on-month, supported by a 1.9% increase in animal production.

Manufacturing growth, however, moderated to 0.4% from 0.8% in July. The manufacture of coke and refined petroleum products increased 1.7%, while computer, electronic and optical products rose 1.3%.

The electricity and gas supply and water supply indices each increased 0.5%.

By stage of processing, all three categories recorded year-on-year increases in August.

The crude materials for further processing index rose 24.8%, compared with 24.1% in July, mainly driven by a 28.5% increase in non-food materials.

The intermediate materials, supplies and components index increased 9.6%, accelerating from 8.4% previously, supported by a 20.0% rise in processed fuel and lubricants.

The finished goods index increased 3.1%, compared with 2.5% in July, driven by a 4.3% increase in capital equipment.

On a monthly basis, crude materials for further processing rose 2.3%, while intermediate materials, supplies and components increased 0.9%. The finished goods index edged up 0.1%.