KUALA LUMPUR (Jan 22): Inflation in Malaysia eased slightly and was marginally slower than expected in December as prices of non-food items and services rose at a more moderate pace, official data released on Wednesday showed.

The consumer price index — Malaysia’s main gauge of inflation — rose 1.7% in December from a year earlier, the Department of Statistics said in a statement. This compares to the median 1.8% increase in a Bloomberg poll. The inflation rate has remained steady at 1.8% since September.

On a month-on-month basis, the index was up 0.1% in December.

For 2024, the annual inflation rate was 1.8%, slowing for the second consecutive year.

The food and beverages category, which accounts for nearly 30% of the CPI's weight, rose 2.7% in December, while the restaurant and accommodation services index climbed 2.9%.

Housing, water, electricity, gas and other fuels increased by 3.2%, while transport — covering vehicle purchases and public transport services — rose 0.4%. Both maintain the same pace as in November.

However, clothing and footwear prices declined 0.5% in December, and the information and communication category saw a sharper drop of 5.4%.

State-level inflation increases were generally below the national rate, except for Penang, Pahang, Selangor, Johor and Sarawak.

Core inflation, which excludes volatile and price-controlled items, came in at 1.6% in December.

Official forecasts have projected headline inflation for 2025 to range between 2% and 3.5%. The government and the central bank expect inflation to remain manageable amid easing global costs and limited domestic demand pressures.