KUALA LUMPUR (July 28): Malaysia’s business inflation in June accelerated to the fastest pace in four years amid higher energy costs, official data released on Tuesday showed.
The producer price index, which tracks inflation at the wholesale level before it reaches consumers, rose 9.2% in June when compared to the same month in 2025, the Department of Statistics Malaysia said in a statement. The index climbed 0.6% when compared to May.
While crude oil eased on a month-on-month basis, prices remained elevated on a year-on-year basis due to geopolitical uncertainties in the Middle East while global energy demand remained unabated, the department said.
Global crude oil prices remained higher at US$81.90 per barrel in June 2026. Brent, the global benchmark for crude oil, averaged US$92.50 in the first six months of 2026.
The jump also tracks gains in other major exporter economies, driven also by sustained demand for technology-related products. In Taiwan, factory-gate prices surged 15.1% in June on strong global demand for semiconductors, artificial intelligence-related products and electronic components.
For consumers, however, inflation has eased thanks to a system of subsidies and price control on essential goods and services. Consumer prices — the preferred gauge of inflation for the government and the central bank — slowed to 1.9% year-on-year in June.
The mining sector sub-index increased 29% in June, moderating from a 53% surge in May, while the agriculture, forestry and fishing sector was up by 9.1% versus the 8.9% gain in the previous month.
The producer price index for the manufacturing sector rose 7.2% in June compared to May’s rate of 3.5% mainly due to coke and refined petroleum products as well as computer, electronic and optical products.