Malaysia registers 1.3% inflation in August


KUALA LUMPUR: The cost of consumer goods and services in Malaysia rose 1.3% in August 2025, with the consumer price index (CPI) standing at 134.9, against 133.2 in the same month last year.

In its monthly report, the National Statistics Department revealed that inflation in August showed a slightly higher rate of increase as compared to 1.2% in July 2025, although this was in line with economist expectations.

Core inflation, meanwhile, increased 2% in August as compared to 1.8% in the previous month.

Drawing a comparison with other countries, the agency said inflation in Malaysia was lower than in Vietnam (3.2%), Indonesia (2.3%) and South Korea (1.7%).

"However, the rate was higher than Thailand (-0.8%) and China (-0.4%)," it said.

Malaysia's restaurant and accommodation services in August increased at a more rapid pace of 3.5% as compared to 3.1% in July.

According to the agency, the increase was driven by inflation for the subgroup of accommodation services, which rose 2.3% as compared to just 1% in July.

Other sectors that saw higher cost increases over the previous month included insurance and financial services (5.6%), personal care, social protection and miscellaneous goods and services (4%), education (2.4%) food and beverages (2%), recreation, sport and culture (0.9%) and furnishing, household equipment and routine household maintenance (0.2%).

The cost of housing, water, electricity, gas and other fuels rose at a slower rate of 1.2% in August as compared to 1.3% in July. This was owing to the slower increase in the electricy, gas and fuels subgroup following the Automatic Fuel Adjustment (AFA) rate revision for domestic users in Peninsular Malaysia.

Inflation for unleaded petrol RON97 in August was negative at -9.2% as compared to -7.8% in July, while diesel was -5.8% as compared to -7.1% in the previous month.

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