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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%).
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