It is the sixth consecutive monthly decline and the lowest rate since November 2023.

According to the PPI Release Month-on-month, producer prices rose by 1.6 per cent between June and July 2025. This means that, on average, producers charged slightly more for their goods and services in July compared to June, even though the overall pace of annual price growth is easing, the statement said.

The Mining and quarrying, the largest sector with a weight of 43.7 per cent saw a notable slowdown.

Inflation in the sector fell from 6.5 per cent in June to 4.6 per cent in July, a reduction of 1.9 percentage points. The Manufacturing, which accounts for 35 per cent of the PPI, also cooled significantly.

Prices in the manufacturing sector dropped from 7.2 per cent to 3.6 per cent, shedding 3.6 percentage points in just one month.

These two sectors, mining and quarrying, and manufacturing, together drove most of the overall fall in producer inflation.

The statement said the combined weight of the two sectors meant that changes had an outsized impact on the national PPI.

Bedides, some sectors were experiencing outright price drops.

"Transport costs fell further from -7.0 per cent in June to -8.1 per cent in July, while prices in accommodation and food services held steady at 2.6 per cent," the statement added.

It said if these cost reductions were passed through to consumers, the benefits could be real and immediate.

The statement said lower costs at the production stage create an opportunity for prices in shops, markets, and services to ease, bringing tangible relief to households.                        

It urged businesses to use lower input costs to innovate and stay competitive, rather than only adjusting margins. Meanwhile, it called on government to lock in stability, while supporting mining and manufacturing with targeted incentives to boost production, protect jobs, and sustain the downward inflation trend.

It urged households and consumers to watch prices closely because when producer costs drop, retail prices should follow.