2025.09.2304:09:37UTC+00Malaysia Inflation Rate Hits 4-Month High as Expected

In August 2025, Malaysia's annual inflation rate increased marginally to 1.3% from July's 1.2%, marking the highest level since April and meeting market expectations. Food prices saw a 2.0% year-over-year increase, up from July's ten-month low of 1.9%. Price increases were also noted in several sectors: recreation (0.9% up from 0.8%), education (growing to 2.4% from 2.2%), restaurants (3.5% from 3.1%), financial services (5.6% from 5.5%), and miscellaneous goods and services (4.0% from 3.9%). Simultaneously, the rate of price decline slowed for clothing (-0.1% compared to -0.2%) and communication (-5.6% compared to -6.4%). In contrast, inflation rates eased for alcoholic beverages (down to 0.4% from 0.6%), housing (reduced to 1.2% from 1.3%), healthcare (lowered to 1.1% from 1.2%), and transport (down to 0.2% from 0.4%). Core inflation, which excludes volatile fresh food and administered prices, rose by 2.0% year-over-year—the fastest pace in four months—after maintaining a 1.8% rise over the previous three months. On a monthly basis, consumer prices increased by 0.1%, continuing the trend observed over the past four months.