KUALA LUMPUR: Malaysia's inflation accelerated to 1.5% year-on-year in September 2025, which was a slightly above market expectations.
The median forecast of a Reuters poll of economists had projected a 1.4% increase in the consumer price index (CPI) during the month.
It was also higher than Malaysia's CPI growth of 1.3% in August.
The September monthly headline inflation increase of 0.2% compared to a 0.1% increase in August.
According to the National Statistics Department, the inflation in September was mainly driven by higher costs in personal care, social protection and miscellaneous gods and services (4.8%) during the month, as compared to 4% in August.
This was followed by a 2.1% increase in costs of food and beverages, 1.5% increase in housing, water, electricity, gas and other fuels, and 0.7% in transport.
Sectors that saw a slower rate of inflation included restaurant and accomodation services (3.3%), and alcoholic beverages and tobacco (0.3%).
Chief Statistician Datuk Sri Mohd Uzir Mahidin said the impact of the transition to the Budi Madani RON95 subsidy system, which started in September 30, will become more evident in October 2025.
