Cooled by declines in oil and gas bills, Malaysia's producer price index (PPI) rose 0.3% on year in February, slowing from the 0.8% on-year rise logged in January, reported the Department of Statistics on Thursday.

Crude petroleum bills fell by 9.8% on year in February, and natural gas charges fell 9.4%.

The manufacturing sector PPI posted a modest decline of 0.3%, reported the Department of Statistics. The electricity and gas supply sector PPI recorded a slight decline of 0.2%.

In contrast, the agriculture, forestry and fishing sector PPI rose 15.2% on year in February, pushed by perennial crop prices, said officials.

Malaysia's PPI gauges prices of goods and services sold by manufacturers and producers at the wholesale level to other business and distributors. It is distinct from the consumer price index (CPI), that measures prices in retail locations faced by shoppers.

Movements in the PPI are sometimes a prelude to later movements in the CPI, as retailers try recoup costs or pass on savings to consumers.

In general, the outlook for inflation in Malaysia is tempered, according to a recent statement from the nation's central bank.

In its monetary policy statement issued in early March, Bank Negara Malaysia said it expected the nation's inflation situation to remain under control through 2025.

"Headline and core inflation stood at 1.7% and 1.8% respectively in January 2025. Overall, inflation in 2025 is expected to remain manageable, amid the easing global cost conditions and the absence of excessive domestic demand pressures," reported Bank Negara Malaysia.