Malaysia’s inflation rate holds steady at 1.7% in January 2025

MALAYSIA’S inflation rate remained unchanged at 1.7% in January 2025, according to the latest data from the Department of Statistics Malaysia (DOSM).

The Consumer Price Index (CPI) stood at 133.6 points, compared to 131.4 points in the same period the previous year.

Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin explained that the inflation rate was largely driven by increased prices in key sectors, particularly restaurant and accommodation services, which saw a rise of 3.5%, personal care, social protection, and miscellaneous goods and services, up by 3.3%, recreation, sport, and culture, which rose by 1.8%, and education, which increased by 1.6%.

Other sectors also saw price hikes, including health services (1.2%), transport (0.9%), alcoholic beverages and tobacco (0.9%), insurance and financial services (0.6%), and furnishings, household equipment, and routine maintenance (0.5%).

However, certain sectors reported a reduction in inflation, such as information and communication, where inflation decreased to -5.3% in January 2025 from -5.4% in December 2024.

This decline was attributed to a drop in the inflation rate for information and communication services, which fell by 5.9%.

The clothing and footwear sector also remained in negative territory with a slight reduction of -0.3%, although this was an improvement from the -0.5% recorded in December.

Housing, water, electricity, gas, and other fuels recorded a slower inflation rate of 2.8%, while food and beverages saw a 2.5% increase compared to 3.2% and 2.7% in the previous month, respectively.

Mohd Uzir also pointed out the increase in diesel prices, with the average price of diesel in Peninsular Malaysia rising to RM3.06 per litre, up from RM2.15 per litre in January 2024. In contrast, diesel prices in Sabah, Sarawak, and the Federal Territory of Labuan remained unchanged at RM2.15 per litre.

At the state level, most states recorded inflation rates below the national average of 1.7%. However, four states saw inflation rates above the national average: Penang (2.4%), Selangor (2.0%), Johor (1.9%), and Pahang (1.9%).

In a regional comparison, Malaysia’s inflation rate of 1.7% was lower than that of several countries in the region, including Vietnam (3.6%), the Philippines (2.9%), and South Korea (2.2%). On the other hand, Malaysia’s inflation was higher than in Thailand (1.3%), Indonesia (0.8%), and China (0.5%).

Overall, Malaysia's inflation rate for January 2025 remained relatively stable compared to previous months, with the government's careful monitoring of key sectors contributing to a controlled economic environment. - February 21, 2025