Malaysia Inflation Rate Lowest Since 2021

Malaysia’s annual inflation rate stood at 1.1% in June 2025, slightly below market consensus and May’s reading of 1.2%. This was the lowest print since February 2021, with costs slowing for transport (0.3% vs 0.7% in May), recreation (0.8% vs 0.9%), and restaurants (2.8% vs 3.0%). At the same time, food prices rose 2.1%, keeping the same pace for the second month while remaining at their softest pace in eight months. Meanwhile, costs fell further for clothing (-0.3% vs -0.2%) and communication (-5.4% vs -5.2%). On the other hand, inflation remained stable for alcoholic beverages (at 0.6%), housing (at 1.7%), education (at 2.2%), and financial services (at 1.5%), while prices of miscellaneous goods and services accelerated (4.2% vs 3.7%). Core inflation, which excludes volatile fresh food and administered prices, held steady at 1.8% yoy for the second month, staying at its highest since November 2023. Monthly, consumer prices edged up 0.1%, matching rises in the prior two months.