Malaysia’s inflation climbs in August 2025 on rising insurance and food costs

Malaysia’s inflation climbs in August 2025 on rising insurance and food costs

KUALA LUMPUR, Sept 23 — Malaysia’s inflation rose 1.3 per cent in August 2025, with the Consumer Price Index (CPI) at 134.9 points compared with 133.2 a year earlier, according to the Department of Statistics Malaysia (DOSM).

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KUALA LUMPUR, Sept 23 — Malaysia’s inflation rose 1.3 per cent in August 2025, with the Consumer Price Index (CPI) at 134.9 points compared with 133.2 a year earlier, according to the Department of Statistics Malaysia (DOSM).

The increase was mainly driven by insurance and financial services, which rose 5.6 per cent from 5.5 per cent in July. Personal care, social protection and miscellaneous goods and services grew 4.0 per cent (July: 3.9 per cent), restaurants and accommodation services increased 3.5 per cent (July: 3.1 per cent), and education climbed 2.4 per cent (July: 2.2 per cent). Food and beverages rose 2.0 per cent compared to 1.9 per cent in July, recreation, sport and culture went up 0.9 per cent (July: 0.8 per cent), while furnishings and household equipment rose 0.2 per cent (July: 0.1 per cent).

The food and beverages group, which carries a 29.8 per cent weight in the CPI, rose 2.0 per cent in August. Inflation for food away from home remained at 4.3 per cent, while food at home eased to –0.1 per cent from –0.3 per cent in July.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said 59.7 per cent of the 573 items in the CPI basket recorded higher prices. Of these, 332 items (97.1 per cent) rose less than or equal to 10 per cent, while 10 items increased by more than 10 per cent. A total of 185 items (32.3 per cent) declined, and 46 remained unchanged.

Inflation for RON97 petrol and diesel remained negative, with RON97 at –9.2 per cent in August (July: –7.8 per cent) and diesel at –5.7 per cent (July: –7.1 per cent). The average price of RON97 was RM3.15 per litre compared to RM3.47 in August 2024 (July: RM3.20), while diesel averaged RM2.90 per litre in Peninsular Malaysia against RM3.27 last year (July: RM2.89). Prices in Sabah, Sarawak and Labuan held at RM2.15 per litre.

At state level, 10 states recorded inflation below the national average of 1.3 per cent, with Kelantan the lowest at 0.1 per cent. Johor posted the highest at 2.0 per cent, followed by Selangor (1.5 per cent), Terengganu (1.5 per cent) and Negeri Sembilan (1.4 per cent). — Bernama

Shoppers pay for their items at a supermarket in Kuala Terengganu, July 23, 2025. — Bernama pic

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