{
  "id": 19240712,
  "title": "Malaysians still feel prices are high despite easing inflation, Bank Negara explains why",
  "url": "https://urgent.news/2026/11/09/malaysians-still-feel-prices-are-high-despite-easing-inflation-bank-19240712",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-09T23:00:00.000Z",
  "source": {
    "name": "Malay Mail",
    "slug": "malay-mail-malaymail",
    "url": "https://www.malaymail.com/news/malaysia/2026/11/10/malaysians-still-feel-prices-are-high-despite-easing-inflation-bank-negara-explains-why/242572"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR, Nov 10 — Despite a decline in Malaysia's inflation rate, the ongoing issue of high living costs persists, as highlighted by Bank Negara Malaysia (BNM). The Consumer Price Index (CPI) tracks average changes in prices of a representative basket of goods and services, but it may not fully capture the nuances of individual household experiences. BNM explained in its Annual Report 2025 that inflation measures the rate at which prices increase, not their current level. In 2025, headline inflation averaged 1.4 percent, the lowest in five years, while core inflation stood at 2 percent in the first nine months of 2026. However, despite these figures, Malaysians still perceive a financial strain due to factors like frequency bias and memory bias. These factors influence how households experience price changes, particularly for staple food and beverage items, which have a significant impact on their perception of inflation. BNM also noted that perceptions are shaped by how people remember price changes, with price hikes leaving a stronger impression than price declines. While the central bank's primary goal is to maintain low and stable inflation to support economic growth and planning for households and businesses, the real challenge lies in whether household incomes can keep up with rising prices. Between 2019 and 2024, Malaysia's headline CPI increased by 9.3 percent, while nominal wages grew by only 7.2 percent. This wage growth lag means that households must work longer hours to afford the same goods, especially food. BNM aims to preserve household purchasing power, but this requires addressing not just inflation but also income growth. To tackle the cost-of-living issue, BNM emphasized the need for a comprehensive policy response that encompasses both household expenditure and income growth. This includes fostering high-skilled and high-paying jobs, accelerating the transition to higher value-added industries, and strengthening technology adoption. Initiatives like the National Industrial Masterplan and the National Investment Aspirations aim to create better-paying employment opportunities. Ultimately, a holistic and coordinated policy strategy is necessary to strengthen households' purchasing power and enhance overall economic well-being.",
  "summary": "KUALA LUMPUR, Nov 10 — While Malaysia’s inflation rate has moderated, the easing trend does not necessarily...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}