MALAYSIA’S inflation rate slowed to 1.2 per cent in May 2025, the lowest recorded in 51 months, according to the Department of Statistics Malaysia (DOSM).
The country’s Consumer Price Index (CPI) stood at 134.4 in May, compared with 132.8 a year earlier.
In a statement today, DOSM said Malaysia’s disinflation trend mirrored that of several regional economies, including the Eurozone (1.9 per cent), South Korea (1.9 per cent), Indonesia (1.6 per cent) and the Philippines (1.3 per cent), due in part to falling global oil prices.
“The decline was also reflected in the Producer Price Index, which registered a -3.4 per cent in April 2025,” it said.
The mining sector led the contraction, recording a -17.8 per cent drop (March: -15.0 per cent), largely due to a sharp -19.8 per cent fall in crude petroleum extraction.
Food and beverages, the CPI’s largest component at 29.8 per cent, rose at a slower pace of 2.1 per cent compared to 2.3 per cent in April.
“The subgroup of food-at-home did not record any changes in May 2025 versus April 2025, which increased 0.5 per cent,” the department said, adding that food-away-from-home saw a slightly higher increase of 4.4 per cent (April: 4.3 per cent).
Other CPI components showing higher year-on-year growth included restaurant and accommodation services (3.0 per cent), health (1.1 per cent), and furnishings and household maintenance (0.2 per cent).
Conversely, the information and communication, and clothing and footwear groups continued to decline, falling by -5.2 per cent and -0.2 per cent respectively.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said 342 out of 573 items tracked — or 59.7 per cent — recorded price increases.
“Of the 342 items, 330 items (96.5 per cent) registered an increase of less than or equal to 10 per cent, while 12 items recorded increases of more than 10 per cent in May 2025. However, 180 items (31.4 per cent) showed a decline and 51 items remained unchanged, which, to a certain extent, offsets the inflation from increasing further,” he said.
Fuel prices continued to moderate, with diesel posting a 12.4 per cent year-on-year increase (April: 15 per cent). The average price in Peninsular Malaysia was RM2.81 per litre, compared to RM2.15 in May 2024, while prices in Sabah, Sarawak and Labuan remained unchanged at RM2.15.
RON97 unleaded petrol remained in negative territory, falling 10.4 per cent year-on-year compared to -6.3 per cent in April. The average price in May was RM3.11 per litre, down from RM3.47 the previous year.
Geographically, 11 states posted inflation rates below the national average, with Kelantan recording the lowest at 0.3 per cent. Johor (1.8 per cent), Negeri Sembilan (1.6 per cent), Selangor (1.5 per cent), Melaka (1.5 per cent), and Kuala Lumpur (1.4 per cent) all recorded rates above the national level. - June 24, 2025
