Kuala lumpur: Malaysia’s inflation increased 1.3 per cent in August 2025, with the index points standing at 134.9, against 133.2 in the same month of the previous year, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, the increase was driven by a higher rise in insurance and financial services, which went up by 5.6 per cent from 5.5 per cent in July 2025. The Consumer Price Index (CPI) for August 2025 also saw growth in personal care, social protection, and miscellaneous goods and services, rising to 4.0 per cent compared to 3.9 per cent in July. Additionally, restaurant and accommodation services increased to 3.5 per cent from 3.1 per cent, while education rose to 2.4 per cent from 2.2 per cent in July.

The food and beverages sector, which makes up 29.8 per cent of the total CPI weight, showed a growth of 2.0 per cent in August, up from 1.9 per cent the previous month. However, there was a mixed trend in food prices, with inflation for food consumed away from home holding steady at 4.3 per cent, whereas food consumed at home saw a slight decrease to negative 0.1 per cent from minus 0.3 per cent in July.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin reported that 59.7 per cent of items in the CPI basket recorded price increases, with 97.1 per cent of these items showing an increase of less than or equal to 10 per cent. Only 10 items registered increases exceeding 10 per cent, while 32.3 per cent of the items showed a decline, and 46 items remained unchanged.

The report also highlighted that inflation for unleaded petrol RON97 and diesel stayed in negative territory in August compared to July, with RON97 recording a negative 9.2 per cent from minus 7.8 per cent and diesel at minus 5.7 per cent from negative 7.1 per cent. The average price of RON97 unleaded petrol was RM3.15 per litre in August 2025, down from RM3.47 per litre in August 2024. Diesel prices in Peninsula Malaysia were RM2.90 per litre compared to RM3.27 per litre in August 2024, while in Sabah, Sarawak, and Labuan, the price remained at RM2.15 per litre.

On a state level, Mohd Uzir noted that 10 states recorded inflation increases below the national rate of 1.3 per cent, with Kelantan having the lowest at 0.1 per cent. Conversely, four states saw increases above the national level, with Johor at 2.0 per cent, followed by Selangor, Terengganu, and Negeri Sembilan at 1.5 per cent and 1.4 per cent, respectively.