Malaysia’s Inflation Rate Drops to 1.3 Percent in October 2025


Kuala lumpur: Malaysia’s inflation rate eased to 1.3 percent in October 2025, a decrease from 1.5 percent in September 2025.



According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) reported this change in their release of the Consumer Price Index (CPI) for October 2025. The moderation was largely due to slower price increases in the food and beverages sector, which rose by 1.5 percent compared to 2.1 percent in September, and the housing, water, electricity, gas, and other fuels sector, which recorded a 1.1 percent increase from the previous 1.5 percent.



Meanwhile, other sectors experienced price increases. Personal care, social protection, and miscellaneous goods and services saw a 6.0 percent rise, up from 4.8 percent in September. Restaurants and accommodation services rose by 3.4 percent, health by 1.5 percent, recreation, sport, and culture by 1.2 percent, and furnishings, household equipment, and routine household maintenance by 0.3 percent. Additionally, insurance and financial services, education, and alcoholic beverages and tobacco maintained the same rates as September. On the other hand, declines were noted in information and communication (-2.4 percent), clothing and footwear (-0.3 percent), and transport (-0.1 percent).



According to DOSM, core inflation increased to 2.2 percent in October 2025, slightly up from 2.1 percent in September. This rise was driven by higher prices in several sectors, including personal care, social protection, and miscellaneous goods and services; restaurants and accommodation services; health; recreation, sport, and culture; and furnishings, household equipment, and routine household maintenance. Conversely, food and beverages and transport saw slower increases compared to the previous month.



DOSM highlighted that about 60 percent of items, accounting for 344 out of 573, recorded price increases. Of these, 335 items rose by 10 percent or less, while only nine items saw increases exceeding 10 percent in October 2025. Additionally, 181 items showed a decline, and 48 items remained unchanged. Some administered items that eased the inflation rate included cooking gas for domestic use, cigarettes, unleaded petrol RON95, and government hospital medical expenses. However, significant price hikes were noted in goods like gold jewelry, grated coconuts, fresh coconut milk, lemons, and plumbing services.



At the state level, most states recorded inflation rates below the national average of 1.3 percent, with Kelantan registering the lowest at 0.1 percent. However, six states-Johor, Negeri Sembilan, Selangor, Wilayah Persekutuan Kuala Lumpur, Melaka, and Terengganu-recorded inflation above the national level. All states experienced increases in food and beverages prices, with Kelantan seeing the lowest at -0.6 percent. Eight states, including Negeri Sembilan, WP Labuan, Melaka, Pahang, WP Kuala Lumpur, Johor, Selangor, and Terengganu, recorded food and beverages inflation above the national average.



When compared to selected countries in the Asia Pacific region, Malaysia’s inflation rate of 1.3 percent was lower than the Philippines (1.7 percent), Indonesia (2.9 percent), and South Korea (2.4 percent), but higher than China’s 0.2 percent rate.