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Malaysia’s inflation rises 1.3% in August 2025 driven by services

KUALA LUMPUR: Malaysia’s inflation rate rose by 1.3% in August 2025, with the Consumer Price Index reaching 134.9 points compared to 133.2 points in the same month last year.

The Department of Statistics Malaysia (DOSM) reported that the increase was primarily driven by a higher rise in insurance and financial services, which climbed to 5.6% from 5.5% in July 2025.

Other significant contributors included personal care, social protection, and miscellaneous goods and services, which grew by 4.0% compared to 3.9% the previous month.

Restaurant and accommodation services inflation increased to 3.5% from 3.1%, while education costs rose to 2.4% from 2.2%.

The food and beverages group, which holds a 29.8% weight in the total CPI, saw a 2.0% increase in August compared to 1.9% in July.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that 59.7% of items in the CPI basket, or 342 out of 573, recorded price increases during the month.

He clarified that 332 of these items, representing 97.1%, registered increases of 10% or less, while only 10 items saw price jumps exceeding 10%.

A further 185 items showed a price decline, and 46 items remained unchanged in price.

Fuel prices continued to show deflation, with RON97 petrol recording a negative 9.2% change from negative 7.8% in July.

Diesel prices in Peninsular Malaysia also remained in negative territory at minus 5.7% compared to minus 7.1% the previous month.

The average price of RON97 unleaded petrol was RM3.15 per litre in August 2025, down from RM3.47 per litre a year earlier.

Diesel averaged RM2.90 per litre in Peninsular Malaysia compared to RM3.27 per litre in August 2024, while the price in Sabah, Sarawak, and Labuan held steady at RM2.15 per litre.

On a state level, ten states recorded inflation rates below the national average of 1.3%, with Kelantan posting the lowest increase at just 0.1%.

Four states exceeded the national inflation level, led by Johor at 2.0%, followed by Selangor and Terengganu at 1.5% each, and Negeri Sembilan at 1.4%. – Bernama

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