Malaysia’s annual inflation rate rose to 1.5% in September 2025 from 1.3% in the previous month, marking the highest reading since February and slightly topping market estimates of 1.4%. Food prices increased by 2.1% yoy, the fastest pace in three months. Main upward pressure also came from housing (1.5% vs 1.2%), transport (0.7% vs 0.2%), alcoholic beverages & tobacco (0.3% vs 0.4% in August), furnishing (0.2% vs 0.2%), health (1.3% vs 1.1%), recreation (0.9% vs 0.9%), education (2.4% vs 2.4%), restaurants (3.3% vs 3.5%), financial services (5.6% vs 5.6%), and miscellaneous items (4.8% vs 4.0%). In contrast, prices fell further for clothing (-0.2% vs -0.1%) and communication (-4.5% vs -5.6%). Core inflation, which excludes volatile fresh food and administered prices, went up 2.1% yoy, the most since October 2023, after a 2.0% gain in August. Monthly, consumer prices increased 0.2%, following a 0.1% rise in the prior five months and pointing to the fastest gain in seven months.