KUALA LUMPUR (April 23): Malaysia’s headline inflation decelerated to its slowest in four years as price gains at restaurants and of other non-food items eased.

The consumer price index (CPI) rose 1.4% in March when compared to the same month in 2024, the Department of Statistics Malaysia (DOSM) said in a statement on Wednesday.

The print was lowest since February 2021, and undershot the median 1.6% rise projected in a Bloomberg survey. 

On a month-on-month basis, the inflation gauge was down 0.1% in March.

The restaurant and accommodation services group eased to 2.9%, down from a 3.5% rise in February. Prices of personal care, social protection and miscellaneous goods and services rose 3.6%, a slight slowdown versus the 3.7% increase in February.

The price increase for housing, water, electricity, gas and other fuels came in slower at 1.9%, compared with the 2.3% jump a month ago. Prices of alcoholic beverages and tobacco increased 0.8%, easing from a 0.9% rise in February.

Prices of furnishing, household equipment and routine household maintenance also increased at a slower rate of 0.2%, versus the 0.3% rise seen in February.

Meanwhile, food and beverages, carrying the largest weight in the index at nearly 30%, remained steady at 2.5% year-on-year in March. Inflation in the transport category stood flat at 0.7%.

Core inflation, which excludes volatile and government-administered price items, was at 1.9% in March, flat when compared to the pace in February.

Bank Negara Malaysia projects headline inflation to range between 2.0% and 3.5% in 2025, while the core print is expected to land in the bounds of 1.5% to 2.5%. In 2024, both headline and core inflation stood at 1.8%.