Malaysia's consumer price index (CPI) rose modestly in December, capping off a year of sub-2% inflation, reported the Department of Statistics (DOSM) on Tuesday.
The nation's CPI rose 1.6% on year in December, up modestly from a 1.4% on-year gain logged in November, said the DOSM.
For the full year 2025, Malaysia's CPI was up 1.4% on year, slowing from a 1.8% on year gain in 2024, added officials.
However, the nation's core inflation rate, that strips out certain volatile food and energy bills, rose 2.3% on year in December, up from 2.2% in November.
For the full year 2025, the core inflation rate posted at 2%, up from 1.8% in 2024, according to the DOSM.
Malaysia's central bankers expect the nation's inflation rate in 2026 to remain under control.
"Meanwhile, core inflation in 2026 is expected to remain stable and close to its long-term average, reflecting continued expansion in economic activity and the absence of excessive demand pressures," said Bank Negara Malaysia in their most-recent monetary policy statement, made in November.
Unlike other central banks, Bank Negara Malaysia does not have an explicit inflation target, but says it intends to maintain "a low and predictable pace of increase in the general level of prices of goods and services."
The Malaysian central bank next meets on Thursday to set course, and possibly adjust its key overnight policy rate of 2.75%.
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