Malaysia’s inflation increased slower 1.1 per cent in June 2025

Malaysia’s inflation increased slower at 1.1 per cent in June 2025 with the index points stood at 134.5 as against 133.0 in the same month of the previous year. The slowdown was also reflected by the decline in Producer Price Index (PPI), local production registering negative 3.6 per cent in May 2025.

The Food & Beverages group which contributes 29.8 per cent of the total CPI weight increased 2.1 per cent in June 2025, the same rate as recorded in May 2025. The subgroup of Food away from home showed a higher increase, 4.7 per cent as compared to 4.4 per cent in the preceding month. However, the decrease of Food at home at negative 0.4 per cent to a certain extent offset the inflation from increasing further.

Besides, the group of Education, 2.2 per cent; Housing, Water, Electricity, Gas & Other Fuels, 1.7 per cent; Insurance & Financial Services, 1.5 per cent and Alcoholic Beverages & Tobacco, 0.6 per cent also increased at the same rate as recorded in the previous month. Moreover, Restaurant & Accommodation Services, 2.8 per cent; Recreation, Sport & Culture, 0.8 per cent; Transport, 0.3 per cent and Furnishings, Household Equipment & Routine Household Maintenance, 0.1 per cent registered a slower increase in June 2025.

Ten states recorded increases below the national inflation rate of 1.1 per cent with Kelantan recording the lowest increase at 0.2 per cent in June 2025. However, five states recorded increases above the national inflation level namely Negeri Sembilan (1.6%), Selangor (1.6%), Johor (1.5%), Melaka (1.3%) and Wilayah Persekutuan Kuala Lumpur (1.2%).

The monthly headline inflation increased 0.1 per cent in June 2025 as compared to May 2025. The increase was attributed by the Personal Care, Social Protection & Miscellaneous Goods & Services which rose by 0.4 per cent. Meanwhile, Food & Beverages, Transport and Education recorded an increase of 0.2 per cent respectively. Additionally, both Recreation, Sport & Culture and Restaurant & Accommodation Services increased 0.1 per cent in June 2025.

Core inflation increased 1.8 per cent in June 2025, the same rate as recorded in the previous month. The increase was driven by Personal Care, Social Protection & Miscellaneous Goods & Services (4.2%); Food & Beverages (3.8%); Restaurant & Accommodation Services (2.8%); Transport (2.3%) and Education (2.2%).

In comparison to inflation in other selected countries, inflation in Malaysia (1.1%) was lower than inflation in Viet Nam (3.6%), Republic of Korea (2.2%), Indonesia (1.9%) and Philippines (1.4%). However, the rate was higher than China (0.1%) and Thailand (-0.3%).