Undercut by oil prices, Malaysia's producer prices extended a run of mild deflation in October, reported the Department of Statistics Malaysia (DOSM) on Wednesday.

The nation's producer price index (PPI) declined 2.4% in October from a year earlier, and declined 0.7% from September, said the DOSM.

The PPI in September had fallen 2.1% on year, and by 1.5% on month.

The PPI measures prices at the factory gate, or the price of goods sold into wholesale markets. It is distinct from consumer price indices (CPIs) that measure inflation or deflation at the retail level, to ordinary consumers.

The PPI is considered one precursor to pending changes in the CPI, as retailers try to recoup costs or pass on savings to customers.

Malaysia's manufacturing sector PPI fell by 2.6% on year in October, as finished petroleum and related products fell in price, said the DOSM.

The nation's mining sector PPI declined by 17.3% on year in October, also pulled lower by crude oil prices.

Malaysia's agriculture, forestry and fishing sector PPI rose by 13.8% on year in October, due to higher perennial crop prices, while electric and gas utility bills rose 0.8% on year.

The crude materials for further processing PPU decreased by 8.7% on year in October, and the intermediate materials, supplies and components index fell by 1.9% in the period.

However, Malaysia's finished goods PPI went up 1.1% on year, led by a 3.1% rise in the cost of capital equipment, reported DOSM.

In mid-November, Malaysia's central bank, Bank Negara Malaysia, noted the nation's CPI averaged up 1.8% through 2024, on year.

"The outlook for inflation will depend on the implementation of further domestic policy measures on subsidies and price controls, as well as global commodity prices and financial market developments," advised Bank Negara Malaysia.