Malaysia Oversight

Rising insurance and food prices push Malaysia inflation higher in August 2025

By MalayMail in September 23, 2025 – Reading time 2 minute
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KUALA LUMPUR, Sept 23 — Malaysia’s inflation increased 1.3 per cent in August 2025, with the index points standing at 134.9, against 133.2 in the same month of the previous year, according to the Department of Statistics Malaysia (DOSM).

In releasing the Consumer Price Index (CPI) for August 2025, DOSM stated that the increase was driven by a higher increase in insurance and financial services, up 5.6 per cent from 5.5 per cent in July 2025.

“The growth was also influenced by personal care, social protection and miscellaneous goods and services of 4.0 per cent (July 2025: 3.9 per cent); restaurant and accommodation services at 3.5 per cent (July 2025: 3.1 per cent); and education at 2.4 per cent (July 2025: 2.2 per cent).

“It also includes the rise of food and beverages at 2.0 per cent (July 2025: 1.9 per cent); recreation, sport and culture at 0.9 per cent (July 2025: 0.8 per cent) and furnishings, household equipment and routine household maintenance groups at 0.2 per cent (July 2025: 0.1 per cent),” said DOSM.

It said the food and beverages group, which contributes 29.8 per cent of the total CPI weight, increased 2.0 per cent in August compared to 1.9 per cent in the preceding month.

It noted that the inflation of food away from home remained at 4.3 per cent compared to the previous month, while food at home decreased to negative 0.1 per cent in August from minus 0.3 per cent in July.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin noted that 59.7 per cent of items (342 out of 573) in the CPI basket recorded price increases. He said out of this total, 332 items, or 97.1 per cent, registered an increase of less than or equal to 10 per cent, while only 10 items recorded increases of more than 10 per cent in August 2025. “The remainder 185 items (32.3 per cent) showed a decline, and 46 items remained unchanged,” he said.

DOSM also noted that “both inflation for the unleaded petrol RON97 and diesel remained in negative territory” in August compared to July, recording a negative 9.2 per cent from minus 7.8 per cent and minus 5.7 per cent from negative 7.1 per cent, respectively.

“The average price of RON97 unleaded petrol in August 2025 was RM3.15 per litre compared to RM3.47 per litre in August 2024 (July 2025: RM3.20). Meanwhile, the average price for diesel in Peninsula Malaysia was RM2.90 per litre compared to RM3.27 per litre in August 2024 (July 2025: RM2.89). “However, the average price of diesel for Sabah, Sarawak and Labuan remained at RM2.15 per litre,” it said.

On the state level, Mohd Uzir said 10 states recorded increases below the national inflation rate of 1.3 per cent, with recording the lowest inflation at 0.1 per cent in August.

However, four states recorded increases above the national inflation level, namely Johor at 2.0 per cent, followed by (1.5 per cent), Terengganu (1.5 per cent) and Negeri Sembilan (1.4 per cent). — Bernama



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