KUALA LUMPUR – Malaysia’s inflation increased at a slower rate of 1.8% in 2024 versus 2.5% in 2023, with the index points standing at 132.8 in 2024 against 130.4 recorded in the previous year, said the Statistics Department (DoSM).
In a statement today, it said the country’s inflation is in line with global inflation, which was recorded at 5.7% in 2024, slower than the 6.6% posted in 2023, citing the International Monetary Fund’s World Economic Outlook Database, April 2025.
“Along with the strengthening of the ringgit and the decline in global commodity prices, the government initiatives to regulate the prices of goods and services, as well as subsidies for certain items, to a certain extent, have curbed Malaysia’s inflation from rising further,” it said.
Chief statistician Datuk Seri Mohd Uzir Mahidin highlighted that inflation for all groups recorded increases in 2024 except for information and communication (-1.5%), and clothing and footwear (-0.3%).
“The slower increase in Malaysia’s inflation was driven by the restaurants and accommodation services (3.1%); food and beverages (2.0%); health (1.8%); education (1.5%); transport (1.0%) and furnishings, household equipment and routine household maintenance group (0.7%).
“Meanwhile, the housing, water, electricity, gas and other fuels (3.0%); personal care, social protection and miscellaneous goods and services (3.0%); recreation, sports and culture (1.8%); alcoholic beverages and tobacco (0.7%) and insurance and financial services group (0.3%) recorded a higher increase as compared to the previous year,” he said.
Mohd Uzir said that inflation for housing, water, electricity, gas, and other fuels recorded a significant increase, although headline inflation moderated in 2024.
This was due to the rise in sewerage services charges by Indah Water Konsortium in January 2024 that offset higher operational costs, he said.
“The increase in this group was also driven by the adjustment of water supply service tariffs by the government through the National Water Services Commission, which involved an average increase of 22 cents per cubic metre for domestic users in Peninsular Malaysia and Wilayah Persekutuan Labuan, effective Feb 1, 2024,” he added.
In the meantime, the chief statistician said a slower increase in inflation of transport was mainly contributed by the subgroup of purchase of vehicles, which moderated to 0.1% in 2024 as compared to 1.4% in the preceding year.
However, inflation for the subgroup of operation of personal transport equipment was higher in 2024 at 1.3% (2023: 0.8%) – attributed to the implementation of targeted diesel subsidies effective June 10, 2024, by the government to control the leakages of subsidised diesel, he noted.
Commenting on the inflation at the state level, the chief statistician explained that most states registered a slower increase in inflation, with four states exceeding the national inflation rate of 1.8% in 2024, namely Penang (3.0%), Pahang (2.4%), Sarawak (2.4%) and Selangor (2.1%).
Meanwhile, Wilayah Persekutuan Labuan recorded the lowest increase at 0.7%.
“All states recorded a slower increase in the inflation of the food and beverages group in 2024,” he noted.
Meanwhile, commenting on inflation in Asean countries, Mohd Uzir said the inflation rate ranged from negative 0.4% to 23.1% in 2024, with Lao PDR recording the highest inflation at 23.1%, while Brunei Darussalam recorded the lowest inflation at negative 0.4%.
“Five countries registered an inflation rate higher than Malaysia (1.8%), namely Lao PDR, Vietnam, the Philippines, Singapore and Indonesia.
“Meanwhile, Cambodia, Thailand and Brunei Darussalam recorded inflation rates lower than Malaysia,” he added. – April 29, 2025