MALAYSIA’S inflation rate eased to 1.1 per cent in June 2025, according to the Department of Statistics Malaysia (DoSM), with the Consumer Price Index (CPI) standing at 134.5 points, up from 133.0 a year earlier.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the moderation was reflected in the overall basket of goods, with 59.2 per cent of items—339 out of 573—recording price increases.
“Nonetheless, of this total, 329 items (97.1 per cent) recorded an increase of less than or equal to 10 per cent, while only 10 items posted increases exceeding 10 per cent in June 2025,” he noted. “The remaining 192 items (33.5 per cent) recorded a decline, and 42 items remained unchanged.”
The Producer Price Index (PPI) for local production also showed downward movement, falling by 3.6 per cent in May 2025, underscoring softening cost pressures at the producer level.
Food and non-alcoholic beverages, which account for 29.8 per cent of the total CPI, rose by 2.1 per cent year-on-year. Within this group, food away from home prices rose 4.7 per cent, slightly up from 4.4 per cent the previous month, while food at home prices fell by 0.4 per cent, helping to contain broader inflation.
Several expenditure groups posted unchanged inflation compared to May, including education (2.2 per cent), housing, utilities and fuels (1.7 per cent), and insurance and financial services (1.5 per cent).
Other categories showed slowing momentum: restaurant and accommodation services rose by 2.8 per cent (May: 3.0 per cent); recreation, sport and culture increased by 0.8 per cent (May: 0.9 per cent); transport edged up by 0.3 per cent (May: 0.7 per cent); and furnishings and household maintenance increased by 0.1 per cent (May: 0.2 per cent).
However, some segments recorded slightly faster increases, including personal care, social protection and miscellaneous goods and services at 4.2 per cent (May: 3.7 per cent), and health at 1.2 per cent (May: 1.1 per cent).
The information and communication, as well as clothing and footwear categories, remained in deflation, with price drops of 5.4 per cent and 0.3 per cent respectively.
At the state level, inflation varied significantly. Ten states reported inflation below the national average, with Kelantan recording the lowest at 0.2 per cent. Conversely, five states posted higher inflation—Negeri Sembilan and Selangor (1.6 per cent), Johor (1.5 per cent), Melaka (1.3 per cent), and Kuala Lumpur (1.2 per cent).
“All states recorded an increase in food and beverage inflation, except Kelantan (-0.1 per cent),” said Mohd Uzir. “The highest was in Negeri Sembilan at 3.3 per cent, followed by Selangor (3.1 per cent), Putrajaya (2.9 per cent), Terengganu (2.6 per cent), Johor (2.2 per cent) and Labuan (2.1 per cent).”
For the second quarter of 2025, the CPI rose 1.3 per cent year-on-year, a moderation from 1.5 per cent in the first quarter. On a monthly basis, headline inflation edged up by 0.1 per cent in June compared to May, while core inflation remained steady at 1.8 per cent. - July 22, 2025
