Malaysia’s inflation rate rose to 1.4% year on year in November 2025, based on the latest Consumer Price Index (CPI) data from the Department of Statistics Malaysia. While the headline figure looks modest, the impact is more visible when broken down into everyday expenses such as food, fuel, electricity, and dining out.

The CPI stood at 135.1 points in November, up from 133.3 points a year earlier, reflecting higher prices across several common spending categories.

Education, Tobacco, and Transport See Clear Price Increases

Education costs increased by 2.6%, continuing an upward trend from October. This matters for households with school-going children, particularly those paying fees, tuition, or related expenses.

Alcoholic Beverages and Tobacco recorded a sharper increase of 2.4%, following the government’s excise duty hike on cigarettes announced under Budget 2026. The higher duty took effect in November 2025 and is now reflected in retail prices.

Transport prices rose by 0.2%, moving back into positive territory after a decline in the previous month. This reflects higher fuel prices and increased costs for certain transport services.

Housing and Utilities Rise More Slowly, but Bills Still Matter

Inflation for Housing, Water, Electricity, Gas, and Other Fuels eased to 0.7%, down from 1.1% in October. While the pace of increase slowed, housing-related costs remain a major part of monthly household spending.

Electricity, gas, and other fuels continued to record a decline of 10.3%. This was largely due to the revised Automatic Fuel Adjustment rebate for domestic users in Peninsular Malaysia who consume more than 600 kilowatt hours. These households received a rebate of 8.91 sen per kilowatt hour in November. Households consuming 600 kilowatt hours or below were not affected.

Food Prices Stay Stable Overall, but Not All Items Cost the Same

Food and Beverages inflation remained at 1.5%, the same rate as in October. This category carries the largest weight in the CPI basket, making it especially relevant to most households.

Food eaten outside the home rose by 2.8%, slightly slower than the previous month. This reflects continued price pressure on meals from hawker stalls, cafés, and restaurants.

Food prepared at home increased marginally by 0.1%. Within this category, fish and seafood prices rose by 2.1%, while oils and fats increased 1.3%. Meat prices edged up by 0.7%.

Chicken Prices Edge Higher at the Wet Market

Chicken, which makes up the largest share of household meat spending, recorded a 1.4% increase. The average price of standard chicken in Malaysia rose to RM10.57 per kilogramme in November 2025, compared with RM10.41 a year earlier.

In Peninsular Malaysia, the average price stood at RM9.87 per kilogramme. As chicken is a daily staple for many households, even small price increases tend to be felt quickly.

However, not all food prices moved in the same direction. Vegetable prices continued to decline, falling 6.1% year on year. Prices for milk, other dairy products, and eggs also fell by 1.0%.

These price declines helped offset higher costs in other food categories, particularly for households that prepare more meals at home.

Fuel Prices Rise, Even as Subsidies Remain

Fuel costs increased during the month. RON97 petrol rose to an average of RM3.24 per litre in November, up from RM3.18 in October. Diesel prices in Peninsular Malaysia increased to RM3.05 per litre.

Subsidised fuel prices remained unchanged. RON95 petrol stayed capped at RM1.99 per litre, while diesel prices in Sabah, Sarawak, and Labuan remained at RM2.15 per litre. For many households, this price gap continues to shape transport and commuting choices.

Some States Feel Inflation More Than Others

Johor and Negeri Sembilan recorded inflation rates of 1.9%, above the national average. Kuala Lumpur followed at 1.7%, with Selangor at 1.6%.

Kelantan recorded the lowest inflation rate at 0.2%. Food and Beverages prices increased in all states except Kelantan, which saw a slight decline.

At 1.4%, Malaysia’s inflation rate remained lower than that of Vietnam, Indonesia, and South Korea during the same period. However, it was higher than inflation in China and Thailand.

Why This Matters for Households

While overall inflation remains moderate, price increases are concentrated in areas that affect daily routines, such as meals outside the home, fuel, education, and regulated goods like tobacco. For households managing tight budgets, even small increases can add up over time.

Tracking where prices are rising, and where they are easing, can help consumers plan spending more carefully as the cost landscape continues to shift.

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