FX.co ★ Malaysia's Inflation Rate Contracts to 1.1% in June, Indicating Slowdown in Price Growth

In a recent release by Malaysia's Department of Statistics, the country's Consumer Price Index (CPI) for June 2025 has registered a mild contraction, decreasing to 1.1% from May's 1.2%. Updated on July 22, 2025, these figures underscore a slight slowdown in Malaysia's inflationary trend over the year.

The latest CPI data compares the price change for June this year to the same month in the previous year and indicates that inflation has been tapering off consecutively over the past months. This subtle dip in the inflation rate might be seen as a positive signal for Malaysian consumers, as it suggests a deceleration in the overall increase of consumer prices.

Economists are closely watching these developments, as the persistent weakening of inflation could influence future monetary policies. With the inflation rate cooling, the central bank may have increased flexibility regarding interest rate adjustments, potentially impacting economic growth strategies moving forward.