Southeast Asia Information Port (www.dnyxxg.com) – Data released by the Department of Statistics Malaysia on the 29th shows that Malaysia's inflation rate is projected to slow to 1.4% in 2025, lower than the 1.8% in 2024.
The Department of Statistics' analysis report on the 2025 Consumer Price Index, released that day, indicated that the slowdown in inflation was mainly due to the strengthening of the ringgit, stable household consumption, and the government's subsidy for RON95 petrol, which to some extent curbed further inflation.
The report believes that this inflation level is within the 1.0%-2.0% range predicted by Bank Negara Malaysia and the Ministry of Finance.
The Chief Statistician of the Department of Statistics Malaysia stated that inflation in 2025 will be mainly driven by price increases in several sectors, including housing, water, electricity, gas and other fuels (1.6%); healthcare (1.2%); entertainment, sports and culture (1.1%); transportation (0.4%); and furniture, household equipment and routine maintenance (0.2%).
Furthermore, the highest inflation rate in 2025 is expected to occur in January at 1.7%, falling to 1.1% in June, primarily driven by slower inflation in food and beverages, housing, water, electricity, and gas. Inflation is expected to rebound somewhat in the second half of the year.
The report also shows that in Malaysia, food and beverages account for the largest share of household spending, representing 29.8% of the total CPI. The report projects a 2.1% increase in 2025, higher than the 2.0% increase in 2024. This increase is mainly driven by the sub-category of food consumed outside the home, which saw a 4.0% increase (compared to 3.6% in 2024); while the increase in the sub-category of food consumed at home narrowed from 0.6% in 2024 to 0.1%, mitigating the overall increase in food prices to some extent. (End)
