Malaysia inflation rises 1.3% in August 2025 driven by services
KUALA LUMPUR, 24/09/2025 — Malaysia inflation rate witnessed a rise of 1.3% in August 2025, largely influenced by the services sector. The Consumer Price Index (CPI) reached 134.9 points compared to 133.2 points in the same month last year, as reported by the Department of Statistics Malaysia (DOSM).
Services Sector as Primary Driver
The inflation increase is attributed mainly to the services sector, with insurance and financial services experiencing a climb to 5.6% from 5.5% in July 2025. Other substantial contributors to the inflation trend include personal care, social protection, and miscellaneous goods and services, which grew by 4.0% from 3.9% the previous month.
Rising Costs in Restaurants and Education
Increases were also recorded in restaurant and accommodation services, which rose to 3.5% from 3.1%, alongside education costs, which increased to 2.4% from 2.2%. The food and beverages group, representing a significant 29.8% weight in the total CPI, saw a rise of 2.0% in August compared to 1.9% in July.
Insights from DOSM
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin highlighted that 59.7% of items in the CPI basket, or 342 out of 573, recorded price increases during the month. He stated, ‘A total of 332 items, representing 97.1%, registered increases of 10% or less, while only 10 items saw price jumps exceeding 10%.’
Fuel Prices and Regional Variations
Fuel prices continued to show deflation, with RON97 petrol recording a negative change of 9.2% from negative 7.8% in July. Diesel prices in Peninsular Malaysia also remained negative at minus 5.7%, slightly improving from minus 7.1% the previous month. At the state level, ten states reported inflation rates below the national average of 1.3%, with Kelantan registering the lowest increase at just 0.1%.
State-Specific Inflation Rates
Four states exceeded the national inflation level, led by Johor at 2.0%, followed by Selangor and Terengganu at 1.5% each, and Negeri Sembilan at 1.4%. The regional disparities highlight varying economic dynamics across Malaysia.
