Malaysia’s Inflation Eases to 1.5% in February 2025, Core CPI Sees Mild Uptick

KUALA LUMPUR, March 23, 2025 — Malaysia’s headline inflation softened to 1.5% year-on-year (yoy) in February 2025, dipping below the anticipated 1.6% yoy, driven by slower price increases in food and non-food items, according to recent data. Urban areas recorded a slight decline to 1.6% yoy from January’s 1.7%, while rural inflation held steady at 1.2% yoy. Despite a modest rise in core CPI, analysts have revised their full-year forecast, now projecting inflation to climb to 2.5% in 2025—down from an earlier 2.8% estimate—due to anticipated impacts from government subsidy rationalization policies.

Inflation Eases

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