World busiest international lane border crossing in Johor Bharu, Malaysia
Credit: Ven Jiun (Greg) Chee

Malaysia’s inflation rate reached 1.6% in December 2025, according to data released by the Department of Statistics Malaysia (DOSM).

Johor recorded the highest inflation at 2.3%, followed by Negeri Sembilan at 2.2%. Pahang and Labuan posted inflation of 1.8%, while Selangor registered 1.7%, all above the national level for the month.

Inflation in other states remained lower or in line with the national rate. Kelantan reported the lowest inflation at 0.5% in December.

DOSM said price increases in food and beverages occurred across all states except Kelantan, which recorded a slight decline in the category.

At the national level, higher prices were concentrated in personal care and miscellaneous goods and services, education, alcoholic beverages and tobacco, and housing, water, electricity, gas and other fuels.

Meanwhile, price growth for transport, recreation and culture, as well as restaurant and accommodation services, eased compared with November.

On a month-to-month basis, headline inflation rose 0.3%, supported by higher prices in information and communication and food and beverages.

For the full year, Malaysia’s inflation averaged 1.4% in 2025, lower than the 1.8% recorded in 2024.

Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri