Kuala Lumpur: Malaysia’s inflation rate increased by 1.8% in 2024, slowing down from 2.5% in 2023, according to the Department of Statistics Malaysia (DOSM). The index points rose to 132.8 in 2024 from 130.4 in the previous year.

According to BERNAMA News Agency, this trend aligns with global inflation, which decreased to 5.7% in 2024 from 6.6% in 2023, based on the International Monetary Fund’s World Economic Outlook Database, April 2025. DOSM attributed the moderation in Malaysia’s inflation to the strengthening of the ringgit, a decline in global commodity prices, government initiatives to regulate prices of goods and services, and subsidies on certain items.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin noted that inflation increased across all groups except for information and communication, which saw a decrease of 1.5%, and clothing and footwear, which fell by 0.3%. The slower inflation increase was driven by sectors such as restaurants and accommodation services (3.1%), food and beverages (2.0%), health (1.8%), education (1.5%), transport (1.0%), and furnishings, household equipment, and routine household maintenance (0.7%).

Mohd Uzir highlighted that the housing, water, electricity, gas, and other fuels sector saw a significant rise of 3.0%, attributed to the increase in sewerage service charges by Indah Water Konsortium in January 2024 and adjustments in water supply service tariffs by the government. Meanwhile, the transport sector recorded a slower increase in inflation due to a moderation in vehicle purchase costs, although operational costs for personal transport rose due to targeted diesel subsidies implemented on June 10, 2024.

At the state level, four states-Penang, Pahang, Sarawak, and Selangor-registered inflation rates exceeding the national average of 1.8%. Wilayah Persekutuan Labuan recorded the lowest increase at 0.7%. All states reported a slower increase in the food and beverages sector.

On a regional level, ASEAN countries saw varying inflation rates, with Lao PDR experiencing the highest at 23.1% and Brunei Darussalam the lowest at negative 0.4%. Five ASEAN countries recorded inflation rates higher than Malaysia, while three had lower rates.