Kuala lumpur: Malaysia's inflation moderated to 1.4 percent in 2025 as compared to 1.8 percent in the previous year, supported by the firmer ringgit, sustained household spending, and initiatives by the government.
According to BERNAMA News Agency, government initiatives to distribute RON95 petrol subsidies to Malaysians helped curb further increases in Malaysia's inflation. 'This rate is within the inflation range projected by Bank Negara Malaysia and the Ministry of Finance, between 1.0 percent and 2.0 percent for 2025,' it said in a statement regarding the analysis of Consumer Price Index (CPI) 2025.
Chief statistician Datuk Seri Dr. Mohd Uzir Mahidin said the country's inflation in 2025 was contributed by the inflation of housing, water, electricity, gas, and other fuels (1.6 percent); health (1.2 percent); recreation, sports, and culture (1.1 percent); transport (0.4 percent) and furnishings, household equipment and routine household maintenance (0.2 percent).
He said personal care, social protection, and miscellaneous goods and services recorded a higher increase at 4.4 percent compared to 2024's 3.0 percent, followed by insurance and financial services (3.4 percent), restaurants and accommodation services (3.2 percent), education (2.3 percent), and food and beverages (2.1 percent).
In contrast, information and communication and clothing and footwear recorded declines of negative 4.3 percent and negative 0.2 percent in 2025, respectively.
'The highest inflation throughout 2025 was recorded in January 2025 at 1.7 percent and edged down to 1.1 percent in June 2025, contributed by a slower trend in the inflation of food and beverages, and housing, water, electricity, gas, and other fuels. Nevertheless, the inflation trend picked up in the second half of the year 2025,' he said.
Mohd Uzir noted that the core inflation rose 2.0 percent in 2025 as compared to 1.8 percent in 2024, contributed by personal care, social protection, and miscellaneous goods and services (4.4 percent), food and beverages (3.4 percent), insurance and financial services (3.4 percent), and restaurant and accommodation services (3.2 percent).
Meanwhile, most states registered slower inflation, with four states exceeding the national inflation rate of 1.4 percent in 2025, namely Johor (2.0 percent), Selangor (1.7 percent), Negeri Sembilan (1.7 percent), and Melaka (1.5 percent). 'Kelantan recorded the lowest increase at 0.3 percent,' he said.
Mohd Uzir added that, compared with inflation in other selected countries, the inflation rate in ASEAN countries ranged from negative 0.3 percent to 7.7 percent in 2025. 'Laos recorded the highest inflation at 7.7 percent, while Brunei recorded the lowest inflation at negative 0.3 percent,' he added.