22.08.202504:12:32UTC+00Malaysia Inflation Inches Up from Over 4-Year Low

Malaysia witnessed a slight increase in its annual inflation rate, reaching 1.2% in July 2025, up from the previous month's over four-year low of 1.1%. This aligns with market forecasts. Food prices experienced their slowest growth rate in ten months, rising by 1.9% compared to 2.1% in June. The pace of cost increases also slowed for housing (1.3% versus 1.7%) and miscellaneous goods and services (3.9% versus 4.2%). Meanwhile, prices for clothing and communication continued to decline, with clothing decreasing by 0.2% from the previous -0.3%, and communication seeing a 6.4% drop compared to June’s 5.4% decrease. Inflation rates for alcoholic beverages (0.6%), healthcare (1.2%), recreation (0.8%), and education (2.2%) showed no change. On the flip side, transportation costs rose more sharply at 0.4% compared to 0.3%, while restaurants saw price growth of 3.1% over 2.8%, and financial services experienced a significant rise to 5.5% from 1.5%. Core inflation, excluding volatile fresh food and regulated prices, remained steady at 1.8% year-on-year for the third consecutive month, marking the highest level since November 2023. On a monthly basis, consumer prices increased by 0.1%, consistent with the rise observed in the previous three months.