KUALA LUMPUR (April 17): Malaysia’s inflation picked up in March, driven mainly by higher transport costs, official data showed on Friday.

The consumer price index (CPI), the country’s main gauge of inflation, rose 1.7% in March compared to the same month in 2025, the Department of Statistics Malaysia said in a statement. The print is a higher the median estimate of 1.5% in a Bloomberg survey and February’s 1.4% year-on-year rise.

The latest data offers an initial read on the impact of the global energy crisis from the geopolitical conflict in the Middle East.

While off highs, prices of oil remain sharply above the levels amid a fragile truce between the US and Iran. However, the US Navy is now blockading the Strait of Hormuz critical for shipping one-fifth of the world’s oil and gas supply.

Brent, the global futures benchmark for crude oil, is trading at US$98.50 (RM389.62) per barrel and nearly 32% higher than the end of 2025.

Inflation of food and beverages, a group which accounts for nearly 30% of the index’s weightage, was lower at 1.1% in March versus a 1.3% gain in February.

The transport index, which measures price changes including that of petrol and public transport services, rose to 1.6% from a contraction of 0.7% in February.

While the Budi95 subsidy scheme protected the average consumers against spikes in prices of petrol and diesel, the index was lifted by prices of other fuels tracking rising global prices as well as surcharges imposed by airlines.

Inflation for a group covering housing, water, electricity, gas and other fuels was also a tad higher.

Other categories saw modest increases, including personal care and miscellaneous goods, insurance and financial services, alcoholic beverages and tobacco, and restaurant and accommodation services. Health, information and communication, housing, and recreation also edged higher.

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