Business

National inflation slows to 1.3% in October amid strong trade and credit growth

BNM attributed the moderation in overall inflation largely to falling prices of non-essential items

Updated 6 months ago · Published on 28 Nov 2025 6:59PM

National inflation slows to 1.3% in October amid strong trade and credit growth
Malaysia’s trade surplus remained substantial at RM19 billion - November 28, 2025

MALAYSIA’S overall inflation eased to 1.3 per cent in October 2025, down from 1.5 per cent in September, as the country benefited from lower non-core price pressures, Bank Negara Malaysia (BNM) reported today.

Core inflation, by contrast, edged slightly higher to 2.2 per cent.

In a statement, BNM attributed the moderation in overall inflation largely to falling prices of non-essential items.

“This includes a continued decline in electricity inflation following rebates reflecting lower generation costs, as well as lower fuel prices during the month,” the central bank noted.

The country’s exports rose 15.7 per cent, led by a 26.5 per cent surge in the electrical and electronics sector, while imports grew 11.2 per cent, boosted by higher imports of capital goods related to data centre investments.

Malaysia’s trade surplus remained substantial at RM19 billion.

Private sector credit, excluding the financial sector, expanded 5.7 per cent, with business and household loans remaining stable.

The banking system maintained a robust liquidity buffer, and the ringgit strengthened 0.5 per cent against the US dollar following easing uncertainties over tariffs after the announcement of the Malaysia–United States trade agreement. - November 28, 2025

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