Malaysia's February inflation slows as housing, utilities costs moderate, official data show

• A group covering housing, water, electricity, gas, and other fuels moderated to 2.3% from 2.8% in January, reflecting a slower rise in maintenance and repair costs. However, rental prices accelerated to 2.3% from 1.7% in the previous month.

KUALA LUMPUR (March 21): Malaysia’s headline inflation slowed in February 2025 as food prices stabilised while housing and utilities costs moderated, according to official data released on Friday.

The consumer price index — Malaysia’s main gauge of inflation — rose 1.5% year-on-year in February, the Department of Statistics Malaysia said in a statement. The pace matched the median estimate of 1.5% in a Bloomberg survey and was lower than January’s 1.7% rise.

On a month-on-month basis, the index was up 0.4%.

Food and beverages, which carried the largest weight in the index at nearly 30%, remained steady at 2.5% year-on-year in February. Prices of food consumed at home rose 0.5%, slightly higher than the 0.4% increase in January, driven by costlier fresh and instant coconut milk. Food away from home inflation eased to 4.6% from 5.0% previously.

A group covering housing, water, electricity, gas, and other fuels moderated to 2.3% from 2.8% in January, reflecting a slower rise in maintenance and repair costs. However, rental prices accelerated to 2.3% from 1.7% in the previous month.

Inflation in the transport category, meanwhile, was 0.7% compared to 0.9% in January thanks to a drop in public transport services costs though diesel prices surged 19% year-on-year in Peninsular Malaysia.

Core inflation, which excludes volatile and government-administered price items, edged up to 1.9% in February from 1.8% in January amid sustained price pressures in essential goods and services.

For 2025, the Ministry of Finance projects headline inflation to range between 2.0% and 3.5%, according to its Economic Report 2025. Bank Negara Malaysia is expected to provide updated inflation and economic forecasts in its annual report later this month.

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