Overview

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%).

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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