KUALA LUMPUR (Nov 21): Malaysia’s inflation moderated more than expected in October 2025, driven by slower price increases in food and housing-related expenses, official data showed on Friday.
The consumer price index (CPI) — the country’s main inflation gauge — rose 1.3% when compared to the same month in 2024, according to a statement from the Department of Statistics Malaysia (DOSM). That compares to September’s 1.5% year-on-year pace and below the Bloomberg median forecast.
The latest print marked Malaysia’s 27th consecutive months of headline inflation staying below 2%, providing comfort to policymakers to focus on preserving growth.
The food and beverage index, which accounts for nearly 30% of the index’s weightage — was up 1.5% in October, compared to September’s 2.1% rise.
Food away from home items decelerated, while food-at-home saw no change compared with September, as increases in items such as fish and seafood, oils and fats were offset by declines in vegetables, meat, and cereals.
The pace of inflation in housing, water, electricity, gas and other fuels eased to 1.1% from 1.5% in September. Although rental-related components and water services saw increases, the category was weighed down by a continued decline in electricity, gas and other fuels.
Other major expenditure groups — information and communication, clothing and footwear, and transport — posted year-on-year declines.
However, a category that covers personal care, social protection and miscellaneous goods accelerated to 6%, while restaurants and accommodation services was up over 3%. Both categories were higher when compared to their September levels.
Insurance and financial services rose 5.6%, while education was up 2.4%, but was unchanged from September.
The country’s core inflation — which strips out volatile food and fuel prices as a measure of underlying demand — edged up to 2.2% in October, from 2.1% in September.
Bank Negara Malaysia expects headline inflation to remain within the 1.5%-to-2.3% range for the full year, according to the latest guidance.