KUALA LUMPUR (July 17): Malaysia’s inflation slowed slightly in June thanks to a smaller rise in transport costs while food prices were steadily higher, data out on Friday showed.
The consumer price index, the main gauge of inflation in Malaysia, rose 1.9% in June when compared to the same month in 2025, according to the Department of Statistics Malaysia. A Bloomberg poll predicted a 2% year-on-year increase. In May, inflation was 2.0%.
On a seasonally-adjusted basis, the index was unchanged month-on-month in June.
Inflation in Malaysia has remained relatively more benign than in many other Asian countries grappling with shortages of energy and industrial materials amid the raging Middle East war.
Subsidies on essential goods have partially shielded the average Malaysians against spikes in prices of global commodities.
Year-on-year, the transport index rose at a slower rate of 2.8% in June compared to 3.8% in the previous month, helped by falling retail prices for unsubsidised fuels like RON97 and diesel. Prices for personal care and education also saw smaller increases.
However, consumers were seeing accelerating inflation in insurance and financial services, which climbed to 5.7% in June from 4.9% in the preceding month. Dining out and lodging also became slightly more expensive, with the restaurant and accommodation services group ticking up to 2.6%.
Meanwhile, utility and housing was 1.4% higher, partly driven by a higher electricity surcharge imposed on heavier domestic users in Peninsular Malaysia.
Food and beverage, which accounts for about 30% of the index’s weightage, climbed 1.4% year-on-year in June and matched the pace in May.
Food-at-home inflation picked up while the price gain was marginally lower for food away from home that covers meals such as in restaurants.
On the other hand, food costs remained stable, holding at a 1.4% growth rate for the second consecutive month. Prices of vegetables continued to drop, with garlic and brinjal seeing double-digit declines, while that of meat jumped.
Standard chicken prices bounced after shrinking the month before, averaging RM10.77 per kilogramme nationwide.
Core inflation — a measure of underlying inflation by stripping out volatile prices of items such as fresh food, as well as administered prices of goods — was a smidge lower at 1.9% in June.