Malaysia Inflation Rate Hits 4-Month High, as Expected

Malaysia’s annual inflation rate edged up to 1.3% in August 2025 from 1.2% in the previous month, marking the highest reading since April and aligning with market forecasts.

Food prices rose by 2.0% yoy, inching higher from the softest pace in ten months of 1.9% in July.

Price growth also accelerated for recreation (0.9% vs 0.8%), education (2.4% vs 2.2%), restaurants (3.5% vs 3.1%), financial services (5.6% vs 5.5%), and miscellaneous goods and services (4.0% vs 3.9%).

At the same time, prices fell at a slower rate for clothing (-0.1% vs -0.2%) and communication (-5.6% vs -6.4%).

Meanwhile, inflation softened for alcoholic beverages (0.4% vs 0.6%), housing (1.2% vs 1.3%), healthcare (1.1% vs 1.2%), and transport (0.2% vs 0.4%).

Core inflation, which excludes volatile fresh food and administered prices, rose 2.0% yoy, the steepest pace in four months, after rising by 1.8% in the prior three months.

Monthly, consumer prices ticked up 0.1%, matching rises in the preceding four months.