Producer price index numbers

THE Statistics Department is expected to release the May 2026 producer price index (PPI) for local production in an otherwise quiet week for economic data.

According to Trading Economics, Malaysia’s PPI is projected to reach 7.2% by the end of the second quarter of 2026.

The PPI rose 5.4% year-on-year (y-o-y) in April, accelerating from 1.1% in March and marking its fastest increase since August 2022.

Also due this week is Bank Negara Malaysia’s detailed disclosure of international reserves as at end-May 2026 and the latest money supply (M3) data.

The S&P Global Malaysia manufacturing purchasing managers’ index (PMI) is due this week as well.

Trading Economics projects the PMI to reach 50.8 by the end of the second quarter.

The PMI fell to 49.9 in May from 51.6 in April, returning to contraction territory as weaker demand and declining export orders weighed on the sector.

Inflation figures

INDONESIA, South Korea and Vietnam are expected to release their June consumer price index (CPI) data this week.

Bloomberg estimates Indonesia’s headline CPI at 0.24% month-on-month (m-o-m) and 3.14% y-o-y, compared with 0.28% m-o-m and 3.08% y-o-y in May, while core inflation is expected to ease to 2.51% from 2.59%.

ING expects Indonesia’s CPI inflation to edge slightly higher in June.

This is driven by second-round effects from elevated oil prices and the rupiah’s depreciation.

The data will offer insight into the extent to which higher energy costs are feeding through to domestic prices.

For South Korea, Bloomberg forecasts headline CPI at 0.2% m-o-m and 3.2% y-o-y, compared with 0.5% m-o-m and 3.1% y-o-y in May.

Core inflation, meanwhile, is seen rising to 2.6% from 2.5%.

China data dump

KEY Chinese releases this week include the June official manufacturing and non-manufacturing PMIs and the RatingDog June manufacturing PMI, while the People’s Bank of China or PBOC is expected to conduct overnight reverse repurchase operations in open market operations. The interest rate it sets will be watched closely by markets.

A Bloomberg survey estimates China’s official manufacturing PMI to edge up to 50.1 in June from 50 in May, while the non-manufacturing PMI is expected to ease to 49.9 from 50.1, returning to contraction territory.

ING expects China’s official PMI figures to hover near the 50-point threshold separating expansion from contraction, with the manufacturing PMI seen edging up to 50.1 and the non-manufacturing PMI slipping to 49.9.