Malaysia's inflation rate continues to decline, hitting 1.4% in 2025, says Armizan


KUALA LUMPUR: Malaysia's inflation rate has been on a steady downward trajectory since 2022, falling from 3.3% to 1.4% in 2025, says Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali (pic).

Armizan said the country's Cost of Living Index also recorded a rate of 1.9% in 2024, lower than the 3.1% recorded in 2023.

"Several socio-economic indicators are used globally as benchmarks and measures of current cost-of-living conditions, including the cost of living index, inflation rate and household income.

"In Malaysia, the Cost of Living Index recorded a rate of 1.9% in 2024, lower than the 3.1% recorded in 2023.

"Meanwhile, the national inflation rate has continued to moderate, standing at 1.4% in 2025, compared with 1.8% in 2024, 2.5% in 2023 and 3.3% in 2022," he said in a written parliamentary reply dated Wednesday (June 24).

He added that household income has also continued to rise, with average household disposable income increasing to RM7,584 in 2024 from RM7,111 in 2022.

The increase indicates that household incomes continue to grow, strengthening people's ability to meet their daily needs, he said.

"Improvements in public well-being can also be seen through the implementation of various targeted assistance programmes, price stabilisation initiatives, continuous enforcement efforts and market interventions to ensure that the benefits are directly enjoyed by the people, particularly those in the B40 and M40 income groups," he said.

He also said Putrajaya's success in addressing the cost of living should be assessed holistically and not solely based on reductions in food prices, housing rents and service costs.

This was because the prices of goods and services are influenced by market forces, which are affected by a range of external and domestic factors, including global economic conditions, geopolitical developments, exchange rate movements, climate change and supply chain disruptions.

"In addition to ensuring that cost-of-living pressures remain well managed, it is equally important to ensure that the supply of goods remains adequate, services remain widely accessible, and people's incomes continue to improve," he said.

He added that the government would continue to enhance and strengthen existing assistance mechanisms to ensure they remain relevant to current needs.

"At the same time, the government will take responsive and appropriate measures to mitigate the impact of any crisis, disaster or unforeseen economic shock that may pose a risk of significantly increasing the cost of living," he said.

 

 

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