PETALING JAYA: Businesses are likely to maintain their margins going into the new year on lower prices of inputs, given that wholesale prices across the entire value chain have fallen, with government data on Monday showing a contraction in the November producer price index (PPI). The PPI, a gauge of prices at the factory gate, contracted 1.8% in November on a year-on-year (y-o-y) basis and was down 0.3% month-on-month (m-o-m). Lee Heng Guie, executive director of the Socio-Economic Research Centre, noted that this would help businesses preserve their margins as cost pressures eased. However, prices rose at a slower pace y-o-y for water supply as well as electricity and gas compared to October. “This could be partially offset by the continuation of the RON95 subsidy, a firmer ringgit, and easing global food prices.

Source: The Star December 30, 2025 20:44 UTC