Malaysia’s inflation holds steady at 1.7% in January 2025

This rate was lower than Vietnam's (3.6%), the Philippines', (2.9%), and South Korea's (2.2%), but higher than Thailand's (1.3%), Indonesia's, (0.8%), and China's (0.5%).

Malaysia’s inflation rate remained at 1.7% in January 2025, with the consumer price index increasing from 131.4 in the same month last year, to 133.6 this year.

According to the Department of Statistics' Consumer Price Index (CPI), January 2025, the rise in inflation was mainly driven by price increases in several areas as compared to December 2024:

• Restaurant & accommodation services: Increase by 3.5%
• Personal care, social protection & miscellaneous goods: Increase by 3.3%
• Recreation, sport & culture: Increase by 1.8%
• Education: Increase by 1.6%
• Health group: Increase by 1.2%
• Transport: Increase by 0.9%
• Alcoholic beverages & tobacco: Increase by 0.9%
• Insurance & financial services: Increase by 0.6%
• Furnishings, household equipment & routine household maintenance: Increase by 0.5%

The food & beverages group showed a slower rise in prices, increasing by 2.5% in January, down from 2.7% in December. Some food items, such as vegetables, saw price decreases due to better weather conditions.

Inflation in the information & communication sector dropped slightly to -5.3%, while for clothing & footwear, it stood at -0.3% (December 2024: -0.5%). Price increases for housing, water, electricity, gas & other fuels and food & beverages slowed down, rising 2.8% and 2.5%, compared to 3.2% and 2.7% in December 2024.

The above aside, inflation in the transport sector also rose to 0.9%, up from 0.4% in December 2024. This was mainly due to higher costs in personal transport equipment, including a 17.1% increase in Diesel costs, and a 6.1% rise in car servicing.

At the state level, most areas saw inflation below the national rate of 1.7%, but Pulau Pinang (2.4%), Selangor (2.0%), Johor (1.9%), and Pahang (1.9%) had higher inflation rates. In these areas, food prices also went up, with Selangor seeing the highest food inflation at 4.3%.

Comparing the overall figure to neighbouring countries, Malaysia’s inflation rate of 1.7% was lower than Vietnam's (3.6%), the Philippines', (2.9%), and South Korea's (2.2%), but higher than Thailand's (1.3%), Indonesia's, (0.8%), and China's (0.5%).

Read the full press release here for more details on the CPI.

Infographic / Ministry of Economy Department of Statistics Malaysia