Economists Forecast Malaysia's CPI to Rise 1.4% Year-on-Year in September
Glynn 23 Oct 2025 11:27ENCopy link & title
According to the median forecast of seven economists surveyed by The Wall Street Journal, Malaysia's Consumer Price Index (CPI) is likely to rise 1.4% year-on-year in September, a slight increase from 1.3% in August.
DBS economists noted in a report that the expanded Sales and Services Tax (SST), implemented since July, is likely to put modest upward pressure on services sector inflation. However, overall inflationary pressure remains contained by the continued decline in prices for energy-related items, providing a counterbalancing effect.
Nevertheless, DBS believes that the RON-95 gasoline subsidy reform introduced by the Malaysian government at the end of September, due to its calibrated tiered subsidy mechanism and relatively stable international oil prices, is expected to have a limited impact on overall prices in the short term.
Economists generally expect Malaysia's inflation to remain moderate, with core inflation under control.
DBS economists noted in a report that the expanded Sales and Services Tax (SST), implemented since July, is likely to put modest upward pressure on services sector inflation. However, overall inflationary pressure remains contained by the continued decline in prices for energy-related items, providing a counterbalancing effect.
Nevertheless, DBS believes that the RON-95 gasoline subsidy reform introduced by the Malaysian government at the end of September, due to its calibrated tiered subsidy mechanism and relatively stable international oil prices, is expected to have a limited impact on overall prices in the short term.
Economists generally expect Malaysia's inflation to remain moderate, with core inflation under control.
