Malaysia’s inflation rate rose 1.5 per cent in September 2025, with the Consumer Price Index (CPI) standing at 135.2 points compared with 133.2 in the same month last year, according to the Department of Statistics Malaysia (DOSM).
The increase was primarily driven by higher prices in the Personal Care, Social Protection & Miscellaneous Goods & Services category, which climbed 4.8 per cent from 4.0 per cent in August. Other major contributors included Food & Beverages (2.1%), Housing, Water, Electricity, Gas & Other Fuels (1.5%), Health (1.3%), and Transport (0.7%).
Meanwhile, Restaurant & Accommodation Services (3.3%) and Alcoholic Beverages & Tobacco (0.3%) posted slower increases compared to the previous month. Several categories remained unchanged from August levels, including Insurance & Financial Services (5.6%), Education (2.4%), Recreation, Sport & Culture (0.9%), and Furnishings, Household Equipment & Routine Household Maintenance (0.2%).
However, Information & Communication (-4.5%) and Clothing & Footwear (-0.2%) continued to record price declines, staying in negative territory
Within the Food & Beverages group, inflation edged up to 2.1 per cent from 2.0 per cent in August. Prices for Food away from home rose to 4.4 per cent (August: 4.3%), while Food at home remained unchanged at -0.1 per cent.
Five states recorded inflation above the national average of 1.5 per cent — Johor (2.0%), Negeri Sembilan (1.9%), Melaka (1.8%), Selangor (1.8%), and Terengganu (1.7%).
On the other hand, 11 states saw inflation below the national rate, with Kelantan recording the lowest increase at 0.5 per cent in September.For the third quarter of 2025, Malaysia’s inflation rose 1.3 per cent year-on-year, driven by increases in Insurance & Financial Services (5.6%), Personal Care, Social Protection & Miscellaneous Goods & Services (4.2%), Restaurant & Accommodation Services (3.3%), and Education (2.3%).
On a monthly basis, headline inflation rose 0.2 per cent in September, supported by higher costs in Information & Communication (1.1%), Personal Care, Social Protection & Miscellaneous Goods & Services (0.8%), and Housing, Water, Electricity, Gas & Other Fuels (0.3%).
Core inflation, which excludes volatile items, also increased to 2.1 per cent from 2.0 per cent in August, largely due to continued upward pressure in Insurance & Financial Services (5.6%), Personal Care (4.8%), and Food & Beverages (3.6%).
DOSM noted that the September data reflects continued price stability in most categories but highlighted that specific consumer-related segments, especially personal care and food services, are seeing stronger price pressures amid sustained domestic demand
