Malaysia’s inflation rate stood at 1.8% in 2024, reflecting a slower pace of increase compared to the previous year, as the government’s targeted subsidies, easing global commodity prices, and a stronger ringgit helped contain upward pressure on prices.

The Department of Statistics Malaysia (DOSM) reported that the annual Consumer Price Index (CPI) rose to 132.8 points, up from 130.4 in 2023. This marked a milder increase than projections made by Bank Negara Malaysia and the Ministry of Finance, which had anticipated inflation to range between 2.0% and 3.6%.

The slower pace of inflation was driven by several factors, including government measures to regulate the cost of goods and services, such as subsidies on selected items like fuel. A stronger ringgit and a decline in global commodity prices also helped ease import costs. According to the International Monetary Fund, global inflation slowed to 5.7% in 2024 from 6.6% the year before, mirroring the trend seen in Malaysia.

Price movements across consumer groups were generally more subdued in 2024, with most categories recording slower increases or modest declines. Notably, the Food and Beverages group, which forms the largest component of household expenditure, recorded a 2.0% increase, down sharply from 4.8% in 2023. This was largely driven by a significant easing in food consumed at home, which rose just 0.6%. Meanwhile, Restaurants and Accommodation Services increased by 3.1%, and Transport costs edged up by 1.0%, with the latter affected by changes in diesel subsidies.

The inflation rate was not uniform across the country. Four states, Pulau Pinang, Pahang, Sarawak, and Selangor, registered inflation rates above the national average, while Labuan recorded the lowest increase at 0.7%. Inflation in both urban and rural areas also eased, standing at 1.8% and 1.7% respectively.

Core inflation, which excludes volatile items such as fresh food and government-controlled prices, also slowed to 1.8% from 3.0% the year before.

Within ASEAN, Malaysia’s inflation rate remained relatively low. While countries such as Lao P.D.R and Viet Nam saw significantly higher rates, Brunei posted a deflation of 0.4%.

Chief Statistician, Dato’ Sri Dr Mohd Uzir Mahidin, noted that although headline inflation moderated, some sectors such as housing and utilities recorded sharper increases due to higher service charges and tariff adjustments implemented early in the year.

(Source: Department of Statistics Malaysia)

• TAGS:
• Bank Negara Malaysia
• Consumer Price Index
• CPI
• Department Of Statistics Malaysia (DOSM)
• DOSM
• Economy
• Inflation