Malaysia’s overall prices increased by 1.6% in December 2025 compared with the same month a year earlier, according to the Department of Statistics Malaysia. The increase was mainly driven by higher costs related to education, personal care, and selected services.

This change is measured using the Consumer Price Index(CPI) which tracks how prices of everyday goods and services change over time, including food, transport, housing, healthcare, and education. It is commonly used to show whether the cost of living is rising or falling.

Education And Personal Care Recorded The Highest Increases

Personal care and related services recorded the largest price increase in December, rising 5.7%. This category includes items such as grooming services and selected social protection-related costs.

Education costs also increased by 2.8%, continuing an upward trend. These costs cover schooling and education-related services, which can affect families with children and students.

Other categories that saw price increases included housing and utilities, information and communication services, household equipment, and clothing.

Food Prices Remained Stable Overall

Food and beverage prices increased 1.5% in December, the same rate as in November. Food makes up the largest portion of the CPI, accounting for nearly 30% of the total basket.

Food eaten outside the home, such as meals at eateries, rose more slowly than before. Food prepared at home recorded a small increase.

Prices rose for items such as fish, seafood, meat, fruits, oils, and sugar-based products. However, vegetable prices continued to fall, helping to offset some of these increases. Items like onions, garlic, mustard, and spinach were cheaper than a year earlier.

Transport And Dining Costs Rose More Slowly

Transport prices increased by 0.1% in December, slower than in the previous month. Public transport costs rose slightly, but this was partly balanced by lower costs related to operating private vehicles.

Restaurant and accommodation prices rose 3.1%, also at a slower pace, suggesting dining-related costs were increasing more gradually toward the end of the year.

Fuel prices were mostly stable. The average price of RON97 petrol remained unchanged, while diesel prices in Peninsular Malaysia edged lower. Subsidised fuel prices continued to help limit larger increases for consumers.

Most Price Changes Were Small

About 63% of items tracked in the CPI recorded price increases in December. Most of these increases were modest, at 10% or less.

Around 30% of items became cheaper, while a small number of prices did not change. This shows that while prices are rising overall, sharp increases are limited to certain areas.

Differences Across States And Income Groups

Five states recorded inflation above the national average of 1.6%, including Johor and Negeri Sembilan. Other states recorded increases that were similar to or lower than the national level.

For households earning below RM3,000 a month, inflation was close to the national average. This suggests that lower-income households generally faced similar price changes to the rest of the population.

Why Education And Service Costs May Feel Higher

While food prices have stabilised, costs linked to education, personal care, and services are rising faster. These expenses are often paid regularly and are harder to avoid, which can make the increase feel more noticeable.

For families with school-going children and students, budgeting pressures may come more from education-related spending and services rather than groceries alone as Malaysia moves further into 2026.

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