Overview

Malaysia's inflation increased 1.6 per cent in December 2025

Malaysia’s inflation increased 1.6 per cent in December 2025 with the index points stood at 135.5 as against 133.4 in the same month of the previous year. The increase was driven by higher inflation for the groups of Personal Care, Social Protection & Miscellaneous Goods & Services, 5.7 per cent; Education, 2.8 per cent; Alcoholic Beverages & Tobacco, 2.5 per cent; Housing, Water, Electricity, Gas & Other Fuels, 0.9 per cent; Information & Communication, 0.9 per cent; Furnishings, Household Equipment & Routine Household Maintenance, 0.3 per cent and Clothing & Footwear, 0.1 per cent.

Nevertheless, the Transport group, 0.1 per cent; Recreation, Sport & Culture, 0.8 per cent and Restaurant & Accommodation Services, 3.1 per cent recorded a slower increase in December 2025 as compared to the previous month. Besides, Insurance & Financial Services (5.6%); Food & Beverages (1.5%) and Health (1.5%) remained at the same rate as recorded in November 2025.

Five states recorded increases above the national inflation level (1.6%) namely Johor (2.3%), Negeri Sembilan (2.2%), Pahang (1.8%); Wilayah Persekutuan Labuan (1.8%) and Selangor (1.7%). However, the remainder 11 states increased below and equal to the national inflation rate with Kelantan recorded the lowest inflation (0.5%) in December 2025. All states registered an increase in inflation of Food & Beverages except Kelantan (-0.3%).

The monthly headline inflation in December 2025 registered an increase of 0.3 per cent as compared to November 2025 (0.0%). This was driven by the Information & Communication (0.6%) and Food & Beverages group (0.4%) which recorded higher increases as compared to the previous month. Besides, the groups of Housing, Water, Electricity, Gas & Other Fuels; Health and Transport increased to 0.2 per cent respectively also recorded the same trend in December 2025.

The annual inflation rate for 2025 recorded at 1.4 per cent, a slower rate as compared to 1.8 per cent in 2024. This was contributed by a slower incline of Housing, Water, Electricity, Gas & Other Fuels, 1.6 per cent (2024: 3.0%); Health, 1.2 per cent (2024: 1.8%); Recreation, Sport & Culture, 1.1 per cent (2024: 1.8%); Transport, 0.4 per cent (2024: 1.0%) and Furnishings, Household Equipment & Routine Household Maintenance, 0.2 per cent (2024: 0.7%). The Information & Communication and Clothing & Footwear registered decreases at negative 4.3 per cent and negative 0.2 per cent in 2025. However, there are groups which increased higher in 2025 such as Personal Care, Social Protection & Miscellaneous Goods & Services (4.4%); Insurance & Financial Services (3.4%); Restaurant & Accommodation Services (3.2%); Education (2.3%) and Food & Beverages (2.1%).

In comparison to inflation in other selected countries, inflation in Malaysia in December 2025 (1.6%) was lower than inflation in Viet Nam (3.5%), Indonesia (2.9%) and Republic of Korea (2.3%). However, the rate was higher than China (0.8%) and Thailand (-0.3%).

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

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