The statistics department said the distribution of RON95 petrol subsidies helped curb further increases in Malaysia’s inflation to a certain extent.
“This rate is within the inflation range projected by Bank Negara Malaysia and the finance ministry, between 1% and 2% for 2025,” Bernama quoted it as saying in its consumer price index analysis for 2025.
Chief Statistician Uzir Mahidin said inflation in 2025 was mainly driven by housing, water, electricity, gas and other fuels (1.6%); health (1.2%); recreation, sports and culture (1.1%); transport (0.4%); as well as furnishings, household equipment, and routine household maintenance (0.2%).
He said personal care, social protection, and miscellaneous goods and services recorded a higher increase at 4.4% compared with 2024’s 3.0%, followed by insurance and financial services (3.4%), restaurants and accommodation services (3.2%), education (2.3%), and food and beverages (2.1%).
In contrast, information and communication and clothing and footwear recorded declines of -4.3% and -0.2% in 2025, respectively.
“The highest inflation throughout 2025 was recorded in January at 1.7%, edging down to 1.1% in June, due to a slower trend in the inflation of food and beverages, and housing, water, electricity, gas, and other fuels.
“The inflation trend picked up in the second half of 2025,” he said.
Uzir said core inflation rose 2% in 2025 compared with 1.8% in 2024, driven by personal care, social protection, and miscellaneous goods and services (4.4%); food and beverages (3.4%); insurance and financial services (3.4%); and restaurants and accommodation services (3.2%).
He said most states registered slower inflation, with four states exceeding the national inflation rate of 1.4% in 2025: Johor (2%), Selangor (1.7%), Negeri Sembilan (1.7%), and Melaka (1.5%).
“Kelantan recorded the lowest increase at 0.3%,” he said.
Uzir said that compared with other selected countries, the inflation rate in Asean countries ranged from -0.3% to 7.7% in 2025.
“Laos recorded the highest inflation at 7.7%, while Brunei recorded the lowest inflation at -0.3%,” he added.