Malaysia: Malaysia’s inflation increased by 1.2 per cent to 134.7 in July 2025 from 133.1 in the same month last year, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, DOSM stated that the increase was driven by the inflation rate for the insurance and financial services group, which rose to 5.5 per cent compared to 1.5 per cent in the previous month. The rise in inflation was also influenced by the restaurants and accommodation services group, which saw an increase of 3.1 per cent, up from 2.8 per cent in June 2025, and transport, which rose to 0.4 per cent from 0.3 per cent.

DOSM noted that the significant rise in the inflation rate for the insurance and financial services group was largely due to higher premium charges for hospital benefit insurance, which surged by 14.7 per cent compared to a marginal 0.4 per cent increase in June 2025. Premiums, including service charges for motorcycles and scooters insurance, also contributed with an increase of 1.8 per cent in July, up from 1.3 per cent in June.

The food and beverages group, which makes up 29.8 per cent of the total Consumer Price Index (CPI) weight, recorded a growth of 1.9 per cent in July 2025 compared to 2.1 per cent in June 2025. This was influenced by the food away from home subgroup, which showed a 4.3 per cent increase, though it was a decrease from 4.7 per cent in June, while food at home saw a slight decline to -0.3 per cent from -0.4 per cent in the previous month.

Chief statistician Datuk Sri Dr Mohd Uzir Mahidin highlighted that 58.3 per cent of items in the CPI basket recorded price increases. Among these, 322 items registered an increase of less than or equal to 10 per cent, and only 12 items saw increases of more than 10 per cent in July 2025. Meanwhile, 189 items showed a decline, and 50 items remained unchanged.

Mohd Uzir also reported that inflation for unleaded petrol RON97 and diesel remained negative, with RON97 at -7.8 per cent and diesel at -7.1 per cent. The average price of RON97 unleaded petrol in July 2025 was RM3.20 per litre, down from RM3.47 per litre in July 2024. The average price for diesel in Peninsular Malaysia stood at RM2.89 per litre, compared to RM3.35 per litre in the previous year, while the average price of diesel for Sabah, Sarawak, and the Federal Territory of Labuan remained at RM2.15 per litre.

On the state level, Mohd Uzir mentioned that 12 states recorded inflation increases below the national rate of 1.2 per cent, with Kelantan experiencing no inflation change. However, four states recorded inflation rises above the national level, namely Johor (1.8 per cent), Selangor (1.5 per cent), Negeri Sembilan (1.4 per cent), and Melaka (1.3 per cent).