Overview

Malaysia’s inflation increased 1.2 per cent in July 2025

Malaysia’s inflation increased 1.2 per cent in July 2025 with the index points stood at 134.7 as against 133.1 in the same month of the previous year. This was driven by the inflation rate for the Insurance & Financial Services group, which rose to 5.5 per cent as compared to 1.5 per cent in the previous month.

The Food & Beverages group which contributes 29.8 per cent of the total CPI weight increased slower at 1.9 per cent in July 2025 as compared to 2.1 per cent in preceding month. This was contributed by the inflation of the Food away from home subgroup, 4.3 per cent (June 2025: 4.7%) and Food at home, which declined to negative 0.3 per cent (June 2025: -0.4%).

Besides, the Personal Care, Social Protection & Miscellaneous Goods & Services group, 3.9 per cent (June 2025: 4.2%) and Housing, Water, Electricity, Gas & Other Fuels, 1.3 per cent (June 2025: 1.7%) also moderated in July 2025. Meanwhile, the Education (2.2%); Health (1.2%); Recreation, Sport & Culture (0.8%); Alcoholic Beverages & Tobacco (0.6%) and Furnishings, Household Equipment & Routine Household Maintenance (0.1%) groups remained unchanged in July 2025. Additionally, Information & Communication and Clothing & Footwear remained at negative territory, registering negative 6.4 per cent and negative 0.2 per cent respectively.

Twelve states recorded increases below the national inflation rate of 1.2 per cent with Kelantan recording the lowest inflation (0.0%) in July 2025. However, four states recorded increases above the national inflation level namely Johor (1.8%), Selangor (1.5%), Negeri Sembilan (1.4%) and Melaka (1.3%).

The monthly headline inflation increased 0.1 per cent in July 2025 as compared to June 2025. The increase was attributed by the Insurance & Financial Services (4.6%), Restaurants & Accommodation Services (0.8%) and Health (0.3%). Meanwhile, the decline of several groups namely Information & Communication (-0.9%); Housing, Water, Electricity, Gas & Other Fuels (-0.4%) and Food & Beverages (-0.1%), to a certain extent offset the inflation from increasing further.

Core inflation increased 1.8 per cent in July 2025, the same rate as recorded in the previous month. The increase was driven by Insurance & Financial Services (5.5%); Personal Care, Social Protection & Miscellaneous Goods & Services (3.9%); Food & Beverages (3.5%) and Restaurants & Accommodation Services (3.1%).

In comparison to inflation in other selected countries, inflation in Malaysia (1.2%) was lower than inflation in Viet Nam (3.2%), Indonesia (2.4%) and Republic of Korea (2.1%). However, the rate was higher than the Philippines (0.9%), China (0.0%) and Thailand (-0.7%).

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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