KUALA LUMPUR, April 29 — Malaysia’s inflation increased at a slower rate of 1.8 per cent in 2024 versus 2.5 per cent in 2023, with the index points standing at 132.8 in 2024 against 130.4 recorded in the previous year, said the Department of Statistics Malaysia (DOSM).
In a statement today, it said the country’s inflation is in line with global inflation, which was recorded at 5.7 per cent in 2024, slower than the 6.6 per cent 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 Dr Mohd Uzir Mahidin highlighted that inflation for all groups recorded increases in 2024 except for information and communication (-1.5 per cent), and clothing and footwear (-0.3 per cent).
“The slower increase in Malaysia’s inflation was driven by the restaurants and accommodation services (3.1 per cent); food and beverages (2.0 per cent); health (1.8 per cent); education (1.5 per cent); transport (1.0 per cent) and furnishings, household equipment and routine household maintenance group (0.7 per cent).
“Meanwhile, the housing, water, electricity, gas and other fuels (3.0 per cent); personal care, social protection and miscellaneous goods and services (3.0 per cent); recreation, sports and culture (1.8 per cent); alcoholic beverages and tobacco (0.7 per cent) and insurance and financial services group (0.3 per cent) 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 per cent in 2024 as compared to 1.4 per cent in the preceding year.
However, inflation for the subgroup of operation of personal transport equipment was higher in 2024 at 1.3 per cent (2023: 0.8 per cent) — 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 per cent in 2024, namely Penang (3.0 per cent), Pahang (2.4 per cent), Sarawak (2.4 per cent) and Selangor (2.1 per cent).
Meanwhile, Wilayah Persekutuan Labuan recorded the lowest increase at 0.7 per cent.
“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 per cent to 23.1 per cent in 2024, with Lao PDR recording the highest inflation at 23.1 per cent, while Brunei Darussalam recorded the lowest inflation at negative 0.4 per cent.
“Five countries registered an inflation rate higher than Malaysia (1.8 per cent), namely Lao PDR, Vietnam, the Philippines, Singapore and Indonesia.
“Meanwhile, Cambodia, Thailand and Brunei Darussalam recorded inflation rates lower than Malaysia,” he added. — Bernama