KUALA LUMPUR, Feb 13 — Malaysia’s headline and core inflation in 2025 averaged at 1.4 per cent and two per cent, respectively, compared with 1.8 per cent in 2024, said Bank Negara Malaysia (BNM).
BNM governor Datuk Seri Abdul Rasheed Ghaffour said in the fourth quarter of 2025, headline inflation remained stable at 1.3 per cent (3Q 2025: 1.3 per cent) while core inflation increased to 2.3 per cent (3Q 2025: 2.0 per cent).
The increase was mainly driven by faster price increases in certain core items (jewellery and watches) and base effects from mobile communication services inflation.
“This was largely offset by lower prices for selected administered items, particularly for electricity (4Q 2025:-10.3 per cent; 3Q 2025: -4.6 per cent) and petrol (4Q 2025: -2 per cent; 3Q 2025: -0.6 per cent), in line with larger discounts related to electricity generation costs during the quarter and the targeted RON95 fuel subsidy implemented beginning October 2025,” he said in a statement today.
He said inflation pervasiveness — measured by the share of consumer price index (CPI) items registering monthly price increases — declined to 39.6 per cent during the quarter (3Q 2025: 43.8 per cent), remaining below the historical fourth-quarter average of 41.7 per cent.
Going forward, Abdul Rasheed said headline inflation is expected to remain moderate in 2026 amid the continued easing in global cost conditions.
“The modest commodity price outlook would help to contain cost pressures on inflation.
“Core inflation is expected to remain broadly stable and close to its long-term average in 2026, reflecting continued expansion in economic activity and the absence of excessive demand pressures.
He added that the domestic policy reforms implemented in 2025, such as the Sales and Service Tax expansion and targeted RON95 subsidy rationalisation, are projected to have only modest effects on inflation in 2026.
