Malaysia's producer price index (PPI) in December 2024 extended a recent trend of moderation, reported the Department of Statistics Malaysia (DOSM) on Tuesday.

The nation's PPI in December rose 0.5% on year in December, after posting a 0.4% decline on year in November. according to DOSM statistics.

On month, Malaysia's PPI rose 0.8% in December from November.

For the full year 2024, Malaysia's PPI rose a modest 0.3% from 2023, according to the DOSM.

Malaysia's PPI, in general, captures the prices of goods at the factory gate, in transactions between producers and large distributors. The PPI is distinct from the consumer price index (CPI) that gauges prices paid at retail by ordinary consumers.

However, the PPI is sometimes considered a leading indicator of pending movements in the CPI, as shopkeepers and others try to recoup costs or pass on savings to consumers.

By sector, Malaysia's agriculture, forestry and fishing PPI posted prices up 23.8% in December, due pressures on perennial crops. Utility bills increased by 0.9% on year, while water charges rose by 6.7% on year in December.

In contrast, the nation's crude petroleum index fell 9.7% on year in December, while the manufacturing PPI logged a 1% decline.

Malaysia's PPI, like that of many other nations, rose during, and in the aftermath, of the pandemic era.

The nation's PPI rose by a recent peak of 13.2% on year in October of 2021, before cooling and actually sinking into deflation by mid-2023. In June of 2023, the PPI posted down 4.8% from a year earlier.

In 2024, the Malaysia PPI has been relatively stable, logging relatively modest gains or loss on year, from month to month.