The Edge Malaysia (27/04/2026) - Malaysia’s factory-gate prices rose for the first time in a year amid a surge of crude oil, water and electricity in March, according to official data released on Monday.

The producer price index, which tracks inflation at the wholesale level before it reaches the consumers, increased 1% year-on-year in March. When compared to February, the index climbed 4.1%, the biggest month-on-month rise in more than two decades, according to the Department of Statistics Malaysia. 

Despite the surge, earlier data on consumer prices — the preferred gauge of inflation for the government and the central bank — have only accelerated slightly during the same month thanks to a system of subsidies and price control on essential goods and services.

The jump also tracks gains in other economies from rising energy costs following the outbreak of the Iran war, which may point to additional price pressures in the months ahead.

The mining sector surged 26.5% year-on-year, reversing an 8.5% contraction previously, largely driven by higher crude petroleum extraction. Within utilities, the water supply index climbed 11.3%, while the electricity and gas supply index rose 9.6%.

The manufacturing sector, however, contracted at slower pace, easing to a 0.8% decline from 2.7% previously on lower prices in the manufacture of coke and refined petroleum products, as well as food products.

Meanwhile, the agriculture, forestry and fishing sector shrank 5.6% year-on-year, improving from an 8.7% decline in the previous month, weighed by a drop in the growing of perennial crops index. Prices of palm oil averaged RM4,321 per tonne in March versus RM4,077.50 per tonne in February.

The rise was largely in line with global energy market trends, as higher crude oil prices boosted demand for biodiesel, while “tighter supply conditions and rising production costs further supported the upward momentum in prices,” said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.

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