FX.co ★ Malaysia Inflation Rate Hits 7-Month High

In September 2025, Malaysia experienced an increase in its annual inflation rate to 1.5%, up from 1.3% in August, reaching the highest level observed since February. This figure slightly exceeded market predictions of a 1.4% increase. Food prices saw a year-over-year rise of 2.1%, marking the most significant climb in three months. Additional upward pressures were noted in several areas: housing costs increased to 1.5% from 1.2%, transportation costs went up to 0.7% from 0.2%, and costs for alcoholic beverages and tobacco edged slightly down to 0.3% from 0.4% in August. The price of furnishings remained steady at 0.2%, while health-related expenses rose to 1.3% from 1.1%. Recreation and education costs remained stable at increases of 0.9% and 2.4%, respectively. Restaurant prices saw a slight decrease to 3.3% from 3.5%, whereas financial services remained consistent with a 5.6% rise. Miscellaneous goods saw a significant increase to 4.8% from 4.0%. Conversely, clothing prices continued to decline to -0.2% from -0.1%, and communication prices also fell, albeit at a slower rate of -4.5% compared to -5.6%. Core inflation, which excludes volatile categories such as fresh food and regulated prices, accelerated to 2.1% year-over-year, the highest rate since October 2023, following a 2.0% increase in August. On a monthly basis, consumer prices increased by 0.2%, a rise from the consistent 0.1% observed over the prior five months, marking the most pronounced monthly gain in seven months.