Malaysia Inflation Inches Up from Over 4-Year Low

Malaysia’s annual inflation rate inched up to 1.2% in July 2025, from June’s over 4-year low of 1.1%, matching market expectations. Food prices rose at the slowest pace in ten months (1.9% vs 2.1% in June), while cost increases eased for housing (1.3% vs 1.7%) and miscellaneous goods and services (3.9% vs 4.2%). At the same time, prices continued to decline for clothing (-0.2% vs -0.3%) and communication (-6.4% vs -5.4%). On the other hand, inflation remained unchanged for alcoholic beverages (at 0.6%), healthcare (at 1.2%), recreation (at 0.8%), and education (at 2.2%). Meanwhile, price growth accelerated for transport (0.4% vs 0.3%), restaurants (3.1% vs 2.8%), and financial services (5.5% vs 1.5%). Core inflation, which excludes volatile fresh food and administered prices, held steady at 1.8% yoy for the third month, remaining at its highest since November 2023. Monthly, consumer prices ticked up 0.1%, matching rises in the prior three months.