The Department of Statistics Malaysia (DOSM) announced that Malaysia's inflation increased to 1.2% with the Consumer Price Index (CPI) recording 134.7 in July 2025 compared to 133.1 in the same month last year.
According to a statement from DOSM today, inflation in the insurance and financial services group increased from 1.5% last month to 5.5%, the main cause of the increase in inflation.
DOSM also said that inflation in July 2025 increased due to increases in prices in the insurance and financial services group, restaurants and accommodation (June: 2.8%) and transportation 0.4% (June: 0.3%).
The significant increase was due to hospital benefit insurance premium charges jumping 14.7% (June 2025: 0.4%) and motorcycle/scooter insurance increasing 1.8% (June 2025: 1.3%).
The food and beverage group, which contributes 29.8% of the CPI, recorded a slower increase of 1.9% in July 2025 from 2.1% in the previous month.
This development was driven by food inflation outside the home of 4.3% (June 2025: 4.7%), while food inflation at home decreased slightly to -0.3% (June 2025: -0.4%).
The average diesel price in Peninsular Malaysia was RM2.89 per litre compared to RM3.35 per litre in July 2024 (June 2025: RM2.78), while in Sabah, Sarawak and Labuan it remained at RM2.15 per litre.
Inflation at the state level showed that 12 states were below the national rate of 1.2%, while Kelantan recorded the lowest inflation of 0.0% in July 2025.
