Malaysia’s inflation increased 1.3 per cent in August
2025
Malaysia’s
inflation increased 1.3 per cent in August 2025 with the index points stood at
134.9 as against 133.2 in the same month of the previous year. The increase was
driven by a higher increase in the group of Insurance & Financial Services,
5.6 per cent; Personal Care, Social Protection & Miscellaneous Goods &
Services, 4.0 per cent; Restaurant & Accommodation Services, 3.5 per cent;
Education, 2.4 per cent; Food & Beverages, 2.0 per cent; Recreation, Sport
& Culture, 0.9 per cent and Furnishings, Household Equipment & Routine
Household Maintenance groups, 0.2 per cent.
Meanwhile,
Housing, Water, Electricity, Gas & Other Fuels, 1.2 per cent; Health, 1.1
per cent; Alcoholic Beverages & Tobacco, 0.4 per cent and Transport, 0.2
per cent showed slower increases as compared to July 2025. Additionally,
Information & Communication and Clothing & Footwear remained at
negative territory, registering negative 5.6 per cent and negative 0.1 per cent
respectively.
The
Food & Beverages group which contributes 29.8 per cent of the total CPI
weight increased at 2.0 per cent in August 2025 as compared to 1.9 per cent in
preceding month. The inflation of the Food away from home, remained at 4.3 per
cent as recorded in the previous month. Meanwhile, Food at home decreased to
negative 0.1 per cent in August 2025.
Ten
states recorded increases below the national inflation rate of 1.3 per cent
with Kelantan recording the lowest inflation (0.1%) in August 2025. However,
four states recorded increases above the national inflation level namely Johor
(2.0%), Selangor (1.5%), Terengganu (1.5%) and Negeri Sembilan (1.4%).
The
monthly headline inflation increased 0.1 per cent in August 2025 as compared to
July 2025. The increase was attributed by the Information & Communication
(0.8%) and Restaurant & Accommodation Services (0.4%). The inflation for
Housing, Water, Electricity, Gas & Other Fuels; Recreation, Sport &
Culture; Education and Personal Care, Social Protection & Miscellaneous
Goods & Services increased to 0.2 per cent.
Core
inflation increased higher at 2.0 per cent in August 2025 as compared to the
previous month (1.8%). The increase was driven by Insurance & Financial
Services (5.6%); Personal Care, Social Protection & Miscellaneous Goods
& Services (4.0%); Restaurants & Accommodation Services (3.5%) and Food
& Beverages (3.4%).
In comparison to inflation in other selected countries, inflation in Malaysia (1.3%) was lower than inflation in Viet Nam (3.2%), Indonesia (2.3%) and the Republic of Korea (1.7%). However, the rate was higher than Thailand (-0.8%) and China (-0.4%).
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