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Fuel Prices Drop, But Services Push Malaysia’s Inflation Higher

1 min read
Fuel Prices Drop, But Services Push Malaysia’s Inflation Higher
Photo by Joachim Schnürle on Unsplash.

Malaysia’s inflation rose 1.3% in August 2025, with the Consumer Price Index reaching 134.9 points. The increase was driven by higher costs in insurance, financial services, personal care, and restaurant sectors.

Fuel Price Drop, Service Pushing Inflation Higher

Food and beverages, which make up nearly 30% of the CPI, rose 2.0%. Chief Statistician Dr Mohd Uzir Mahidin said nearly 60% of CPI items saw price hikes, though most were under 10%. Fuel prices continued to decline, with RON97 down 9.2% and diesel falling 5.7%. Johor recorded the highest state-level inflation at 2.0%, while Kelantan posted the lowest at 0.1%, below the national average.

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Fuel Prices Drop, But Services Push Malaysia’s Inflation Higher
Photo by Joachim Schnürle on Unsplash.

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