Inflation rises slightly to 1.4% in November

Core inflation, however, remains unchanged at 2.2%.

Bank Negara Malaysia said the rise in inflation in November was driven partly by higher cigarette prices and higher food-at-home prices, particularly fresh meat and fish. (Envato Elements pic)

KUALA LUMPUR:

 Malaysia’s headline inflation edged up slightly to 1.4% in November from 1.3% in the previous month, said Bank Negara Malaysia.

In its Monthly Highlights for November 2025, the central bank said the rise was driven partly by higher cigarette prices following the excise duty increase announced in the 2026 budget and higher food-at-home prices, particularly fresh meat and fish.

However, BNM said core inflation, which excludes items like food and fuel, remained unchanged at 2.2%.

“Core inflation remained stable, reflecting steady underlying price pressures, with higher inflation in mobile communication services and motor vehicles offset by lower inflation in jewellery and watches and audio-visual services,” it said.

On the production front, BNM said manufacturing output growth accelerated, with the Manufacturing Industrial Production Index registering a 6.5% growth in October versus September’s 5%.

“Export-oriented clusters strengthened to 7.2% (September 2025: 4.8%), driven mainly by electrical and electronics (E&E) and machinery and equipment,” the central bank said.

Meanwhile, domestic-oriented manufacturing clusters eased to 4.9% from 5.3% in September, supported by robust growth in food and beverage and pharmaceuticals, offsetting the contraction in motor vehicle production.

BNM said credit to the private non-financial sector grew by 5.5% in November, slightly lower than the 5.7% recorded in October, supported by steady growth in outstanding loans.

“Business loan growth moderated to 5% following slower loan growth among small and medium enterprises (SMEs), while loan growth among non-SMEs increased, particularly for investment-related purposes,” it said.

Household loan growth remained stable at 5.7% amid sustained loan growth across most purposes.

On financial stability, BNM said banks’ liquid asset buffers remained adequate, with the aggregate liquidity coverage ratio at 145.6% in October.

“Asset quality in the banking system continued to be sound,”it said, adding that the gross impaired loans ratio remained stable at 1.4%, while the net impaired loans ratio recorded a marginal uptick to 1% due to lower provisions.

BNM also said November’s domestic financial markets were influenced by shifting expectations of the US Federal Reserve’s monetary policy path.

It said the ringgit appreciated by 1.5% against the US dollar in November while the FBM KLCI declined by 0.3% amid net foreign equity outflows. - FMT