FX.co ★ Malaysia Inflation Rate Unexpectedly Slows

In October 2025, Malaysia's annual inflation rate decreased to 1.3%, a change from the seven-month high in September and below the market forecast of 1.5%. Food prices saw their smallest increase in over four years, rising just 1.5% compared to 2.1% in September. Housing costs also declined, growing at a slower rate of 1.1% compared to the previous month's 1.5%. There were drops in the prices of transport (-0.1% from 0.7%), clothing (-0.3% from -0.2%), and communication (-2.4% from -4.5%). However, inflation remained unchanged for alcoholic beverages & tobacco (0.3%), education (2.4%), and financial services (5.6%). Meanwhile, prices rose for furnishings (0.3% from 0.2%), health (1.5% from 1.3%), recreation (1.2% from 0.9%), restaurants (3.4% from 3.3%), and miscellaneous items (6.0% from 4.8%). Core inflation, excluding the more unpredictable fresh food and regulated prices, accelerated at a yearly rate of 2.2%, marking the quickest rise in two years, following a 2.1% increase in September. Month-on-month, consumer prices decreased by 0.1%, reversing the 0.2% rise observed in September, which had been the most significant increase in seven months.