Malaysia's Producer Price Index (PPI) for local production dropped 0.2 percent year-on-year in September, dragged mainly by agriculture, forestry and fishing as well as manufacturing, official data showed Wednesday.

Malaysian Statistics Department said in a statement that agriculture, forestry and fishing index plunged up to 16.4 percent for the month, while manufacturing index declined 1.7 percent.

Meanwhile, the index for mining surged up to 28.9 percent, electricity and gas supply rose 1 percent, and water supply increased by 0.4 percent.

On a monthly basis, the PPI for local production grew 1.2 percent in September, the highest increase since rising 2 percent in January last year.

The growth was mainly supported by the index of mining, which jumped 10.3 percent, and manufacturing that expanded 0.3 percent, water supply which rose 0.2 percent.

However, the index for agriculture, forestry and fishing decreased 0.5 percent. The index for electricity and gas supply also fell 0.1 percent.