Producer prices in Malaysia dropped by 3.7 percent year-on-year in December 2018, after a 2.9 percent fall in a month earlier. It was the second straight of decline in producer prices and the steepest since March 2016, dragged by decreases in cost of mining (-4.3 percent vs 4.5 percent in November); agriculture, forestry & fishing (-17.6 percent vs -22.7 percent); and manufacturing (-2.6 percent vs -1.8 percent). Meantime, cost of electricity & gas supply went up faster (1.6 percent vs 1.2 percent) while cost of water supply rebounded (0.8 percent vs -0.1 percent). On a monthly basis, producer prices fell 1.3 percent, compared to a 2.8 percent drop in November. 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 2.30 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 1.60 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.