Overview

Malaysia's inflation eased to 1.4 per cent in 2025

Malaysia’s inflation increased at 1.4 per cent in 2025 with the index points increased to 134.6 from 132.8 in the previous year. Inflation in 2025 was contributed by the inflation of Housing, Water, Electricity, Gas & Other Fuels (1.6%); Health (1.2%); Recreation, Sports & Culture (1.1%); Transport (0.4%) and Furnishings, Household Equipment & Routine Household Maintenance (0.2%). However, Personal Care, Social Protection & Miscellaneous Goods & Services recorded a higher increase at 4.4 per cent (2024: 3.0%). This was followed by Insurance & Financial Services, 3.4 per cent (2024: 0.3%); Restaurants & Accommodation Services, 3.2 per cent (2024: 3.1%); Education, 2.3 per cent (2024: 1.5%); Food & Beverages, 2.1 per cent (2024: 2.0%) and Alcoholic Beverages & Tobacco, 0.9 per cent (2024: 0.7%). Meanwhile, Information & Communication and Clothing & Footwear recorded a decline of negative 4.3 per cent and negative 0.2 per cent in 2025, respectively.

Most states registered a slower increase in inflation, with four states exceeding the national inflation rate of 1.4 per cent in 2025, namely Johor (2.0%), Selangor (1.7%), Negeri Sembilan (1.7%) and Melaka (1.5%). Meanwhile, Kelantan recorded the lowest increase at 0.3 per cent. Almost all states recorded an increase in the inflation of Food & Beverages group in 2025. The highest increase was recorded by Negeri Sembilan (3.2%), followed by Selangor (2.8%), Wilayah Persekutuan Putrajaya (2.7%), while Johor, Melaka, Terengganu and Wilayah Persekutuan Labuan showed an increase by 2.4 per cent respectively. In addition, other states showed an increase below the national inflation Food & Beverages group, which was 2.1 per cent in 2025.

In terms of inflation for urban and rural areas, inflation in urban area in 2025 increased at a higher rate than in rural area. The inflation in urban area recorded 1.5 per cent as compared to 1.8 per cent in 2024. Among the groups that contributed to the increase were Personal Care, Social Protection & Miscellaneous Goods & Services, 4.4 per cent (2024: 3.0%); Insurance & Financial Services, 3.5 per cent (2024: 0.3%); Restaurants & Accommodation Services, 3.3 per cent (2024: 3.2%); Education, 2.4 per cent (2024: 1.7%) and Food & Beverages, 2.2 per cent (2024: 2.1%). Concurrently, inflation in rural areas also moderated to 1.0 per cent in 2025 (2024: 1.7%). This increase was mainly due to the inflation of Personal Care, Social Protection & Miscellaneous Goods & Services, 4.3 per cent (2024: 3.1%); Insurance & Financial Services, 2.6 per cent (2024: 0.2%) and Education, 1.2 per cent (2024: 0.6%). 

In comparison to inflation in other selected countries, the inflation rate in ASEAN countries ranged from negative 0.3 per cent to 7.7 per cent in 2025. Lao PDR recorded the highest inflation at 7.7 per cent, while Brunei Darussalam recorded the lowest inflation at negative 0.3 per cent. Besides, other four countries registered an inflation rate higher than Malaysia (1.4%) namely Viet Nam (3.3%), Cambodia (2.5%), Indonesia (1.9%) and Philippines (1.7%). Meanwhile, Singapore (0.9%), Timor-Leste (0.5%), Thailand (-0.1%) and Brunei Darussalam (-0.3%) recorded inflation rates lower than Malaysia.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

Not found what you looking for? Request data from us, through
Go to eStatistik
Email: data[at]dosm.gov.my
Phone: 03 8885 7128 (data request)