KUALA LUMPUR, 22 August 2025 – Malaysia’s consumer inflation edged higher in July, rising 1.2 per cent year-on-year as service-related costs gained momentum, according to the Department of Statistics Malaysia (DOSM). The Consumer Price Index (CPI) climbed to 134.7 from 133.1 a year earlier, marking steady but contained price pressures.
The uptick was largely fuelled by a surge in the insurance and financial services sector, which accelerated sharply to 5.5 per cent from 1.5 per cent in June. Inflation in restaurants and accommodation services also quickened to 3.1 per cent, while the transport category saw a marginal increase to 0.4 per cent.
In contrast, food and beverages — the single largest CPI component with a 29.8 per cent weight — eased to 1.9 per cent from 2.1 per cent in June. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that more than half of the items tracked, or 58.3 per cent, recorded higher prices, though most increases were modest. Nearly all of the 322 items that rose in July saw price growth of 10 per cent or less, while only 12 items recorded double-digit increases.
Food at home prices fell into negative territory at -0.3 per cent, reflecting cheaper vegetables, dairy products, eggs, meat, cereals and fruits. Prices for food consumed away from home also slowed, rising 4.3 per cent compared to 4.7 per cent in June.
Inflation varied across states, with Kelantan recording the lowest rate at 0.0 per cent, while Johor (1.8 per cent), Selangor (1.5 per cent), Negeri Sembilan (1.4 per cent) and Melaka (1.3 per cent) outpaced the national average. Food and beverage prices increased in nearly all states, except Kelantan which posted a slight decline. Negeri Sembilan saw the steepest rise at 3.3 per cent.
Regionally, Malaysia’s July inflation was comparatively moderate. At 1.2 per cent, it remained lower than Vietnam (3.2 per cent), Indonesia (2.4 per cent) and South Korea (2.1 per cent), but higher than the Philippines (0.9 per cent), China (0.0 per cent) and Thailand (-0.7 per cent).
The data highlights a picture of steady price growth, with services outpacing food as the key inflation driver. Policymakers are expected to continue balancing growth-supportive measures with efforts to contain potential upward cost pressures in the months ahead.
