Malaysia’s CPI Inflation Inches Up to 1.3% in August

KUALA LUMPUR, Sept 23 — Malaysia’s headline consumer price index (CPI) inflation rose slightly to +1.3% year-on-year in August 2025, compared to +1.2% in July. The increase signals a gradual pick-up in inflationary pressures from June’s +1.1%, the lowest reading this year.

Food away from home remained a key driver, recording +4.3% inflation, unchanged from July, while food at home prices continued to contract though at a slower pace (-0.1% versus -0.3% previously).

CPI Inflation Inches Up

By location, urban inflation inched up to +1.3% while rural inflation strengthened to +1.0%, reflecting broader price increases.

Despite the uptick, inflation remains relatively mild. Economists have revised their 2025 CPI forecast lower to +1.4%, from +1.8% previously, citing subdued cost pressures and the delayed implementation of targeted RON95 fuel subsidies. Policy changes such as the expansion of SST coverage, however, may contribute to future price increases.

Business News