Malaysia's inflation drops to 1.1% in June 2025, core inflation steady
The central bank attributed the easing headline inflation to lower price pressures in non-core items, particularly fresh food, diesel, and air passenger transport.
'Higher inflation in selected core items, such as food away from home and streaming services, was largely offset by lower inflation for mobile communication services and video game consoles,' BNM said in a statement.
Private sector credit growth moderated slightly to 5.2 per cent in June (May: 5.4 per cent), with steady loan expansion at 5.5 per cent. Corporate bond growth slowed to 4.3 per cent (May: 4.7 per cent). Business loans grew at 4.5 per cent, supported by sustained SME investment activity, while household loans maintained a six per cent growth rate.
Amid global uncertainties, the ringgit appreciated 0.5 per cent against the US dollar, with the nominal effective exchange rate (NEER) at -0.2 per cent. BNM noted that the FBM KLCI rose 1.6 per cent, aligning with regional equity trends, while 10-year MGS yields fell by 5.0 basis points.
The banking system maintained strong liquidity buffers, with a Liquidity Coverage Ratio of 160.6 per cent and a stable loan-to-fund ratio of 83.3 per cent. Gross impaired loans dipped to 1.4 per cent, with net impaired loans steady at 0.9 per cent. - Bernama
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