Malaysia’s inflation rate continued to moderate in October 2025, with the Consumer Price Index (CPI) recording a year-on-year increase of 1.3%. The Department of Statistics Malaysia (DOSM) reported that the national index reached 135.1 points compared with 133.4 points in the same month last year.

Price Movements Across Major Spending Groups

Inflation slowed in several key categories. Food and Beverages rose 1.5%, compared with 2.1% in September, while Housing, Water, Electricity, Gas and Other Fuels increased 1.1%, down from 1.5%. Some categories recorded price declines, including Information and Communication at negative 2.4% and Clothing and Footwear at negative 0.3%. The Transport group shifted marginally into negative territory at negative 0.1%.

A few groups saw stronger increases. Personal Care, Social Protection and Miscellaneous Goods and Services rose 6.0%, Restaurant and Accommodation Services increased 3.4%, and Recreation, Sport and Culture grew 1.2%.

Across the CPI basket, 60% of items recorded year-on-year increases. Almost all of these rose by 10% or less. Nine items recorded stronger increases, while 181 items fell in price and 48 showed no change.

Food And Energy Trends That Influenced Inflation

Food prices showed mixed movements. Food away from home rose 2.9% compared with 4.4% in September, while food at home recorded no change from a year earlier. Vegetables continued to decline, falling 6.0% on average. Items such as Japanese mustard, mustard greens, lettuce and French beans were among those that saw lower prices.

Meat prices decreased 0.7%, supported by lower prices for local beef and frozen chicken parts. The average price of standard chicken fell to RM10.35 per kilogramme compared with RM10.63 in October last year.

Egg prices rose between 4.8% and 7.1% for Grade A, B and C eggs.

Energy-related prices remained in negative territory. Electricity, Gas and Other Fuels declined 8.4%, reflecting the revised Automatic Fuel Adjustment rebate of 6.50 sen per kWh for households consuming more than 600 kWh.

Transport inflation fell slightly. RON97 petrol prices stayed stable, while diesel in Peninsular Malaysia rose marginally to RM2.92 per litre. Diesel in Sabah, Sarawak and Labuan remained at RM2.15 per litre.

The targeted subsidy system for RON95 petrol, known as Budi Madani RON95 (BUDI95), which began on 30 September 2025, also influenced transport costs. More than 16 million eligible Malaysians continue to purchase RON95 at RM1.99 per litre under the programme.

Inflation Differences Across States

Inflation varied across states. Johor recorded the highest rate at 1.9%, followed by Negeri Sembilan at 1.7% and Selangor at 1.6%. Kelantan recorded the lowest rate at 0.1%.

Most states also recorded food inflation. Negeri Sembilan, Labuan, Melaka and Pahang reported food price increases above the national average of 1.5%.

Malaysia Compared With Other Economies

Malaysia’s inflation rate of 1.3% remained below several regional economies. Vietnam recorded 3.3%, Indonesia recorded 2.9%, and the Republic of Korea recorded 2.4%. China recorded 0.2%, while Thailand remained in deflation at negative 0.8%.

What It Means For Consumers

October’s CPI results suggest that overall price pressures have continued to ease, offering some relief to households. Stable RON97 prices, lower electricity-related charges, and moderating food prices help contain living costs for many consumers.

At the same time, everyday spending may still feel pressured in areas that continue to rise, such as personal care products and restaurant meals. These categories reflect changes in consumer demand and service-related pricing, which may vary across different household types.

The combination of targeted subsidies, seasonal food movements and broader economic conditions will continue influencing household budgets. DOSM will maintain monthly monitoring to help consumers and policymakers track how these factors shape price trends.

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