Inflation in Malaysia, August 2025: How Prices Affect Daily Life
MALAYSIA – The Department of Statistics Malaysia (DOSM) has released the latest monthly Consumer Price Index (CPI) data.
As of August 2025, Malaysia’s inflation rate increased to 1.3%, up slightly from 1.2% July 2025.
Scope
- Source: Consumer Price Index August 2025 (Link)
- Focus Area: Covers national trends, key inflation components, and state-level breakdowns.
KEY HIGHLIGHTS: Inflation
National Inflation Trend (1.3% in August 2025)
In August 2025, Malaysia’s headline CPI grew by 1.3% year-on-year (YoY).
On a month-on-month (MoM) basis, inflation has been inching up by 0.1% each month since April 2025.
What drives the inflation?
Inflation by Components (August 2025)
Insurance & Financial Serives recorded the highest inflation at 5.6% YoY. Followed by Personal Care & Miscellaneous at 4%. Restaurant & Accommodation Services also saw an increase of 3.5%. Other components: education (2.4%), food & beverages (2%), housing & utilities (1.2%), health (1.1%), recreation, sport & culture (0.9%), alcoholic beverages & tobacco (0.4%), transport (0.2%) and furniture & household (0.2%).
State-Level Highlights
Johor recorded the highest YoY inflation at 2%. Selangor and Terengganu (1.5%), Negeri Sembilan (1.4%), Melaka and Sabah (1.3%), Pahang (1.1%), Pulau Pinang and W.P. Kuala Lumpur (1%), Perak, W.P. Labuan and W.P. Putrajaya (0.8%), Perlis (0.7%), Kedah and Sarawak (0.5%).
Kelantan meanwhile experienced the lowest inflation at 0.1%
