If you’re looking for a place where your money stretches a little further, Kelantan is currently leading the way.
According to newly released data from the Department of Statistics Malaysia (DOSM), Kelantan recorded an inflation rate of just 0.1% in October 2025, the lowest in the entire country.
While many Malaysians are still feeling the effects of rising living costs, Kelantan seems to be moving quietly on its own path, almost untouched by the pressures affecting the rest of the country.
Meanwhile, six other states experienced inflation above the national level of 1.3%. These include:
- Johor – 1.9%
- Negeri Sembilan – 1.7%
- Selangor – 1.6%
- WP Kuala Lumpur – 1.6%
- Melaka – 1.4%
- Terengganu – 1.4%
So what’s going on, and how is Kelantan keeping prices so low?
Malaysia’s Inflation Is Slowing Down, But Still Rising
Across the country, Malaysia’s inflation eased to 1.3 percent in October, slightly lower than September’s 1.5 percent. In simple terms, prices are still rising, but very slowly, and even dipping month-to-month.
The biggest reason behind this moderation is the softening in food and housing costs. Food and beverages rose only 1.5 percent, while housing, water, electricity, gas and other essential utilities increased by a modest 1.1 percent.
Interestingly, some categories even became cheaper. Information and communication services recorded a drop of 2.4 percent, clothing saw a small decline, and transport prices also eased.
Month to month, the overall inflation rate slipped by 0.1 percent, which suggests that price pressures are losing momentum and settling into a calmer pattern.
However, the story is different for services. Personal care, dining, accommodation, health and lifestyle-related services continue to climb, reminding Malaysians that while groceries may be stabilising, the cost of living as a whole is still creeping upward.
Why Is Kelantan So Different?
One of the most fascinating findings in the report is this: Kelantan recorded food inflation of negative 0.6 percent. This means food prices in Kelantan actually became slightly cheaper in October.
No other state recorded a decrease. Every other part of Malaysia saw food prices rise, some faster than others.
Several factors could be contributing to this. Kelantan relies heavily on local produce, traditional wet markets and local supply chains, which may shield it from global price movements. The state has a smaller urban footprint, lower rental and logistics costs and consumption patterns that lean toward local ingredients rather than imported goods.
These dynamics may have created a unique buffer that kept prices steady while the rest of the country felt the pressure.
Whatever the mix, Kelantan is defying the national trend.
Urban States Continue To Feel The Pressure
While Kelantan enjoys calm waters, urban and semi urban states continue to feel the strain of rising prices. Eight states saw food inflation above the national average of 1.5%.
- Negeri Sembilan: 2.6%
- WP Labuan: 2.5%
- Melaka: 2.3%
- Pahang: 2.1%
- WP Kuala Lumpur: 2.0%
- Johor: 1.9%
- Selangor: 1.7%
- Terengganu: 1.7%
The contrast is stark. This highlights a reality that Malaysians already know well. Urban convenience always comes with an urban price tag, whether through food delivery, dining habits, or simple everyday expenses that slowly add up.
Malaysia Stays Competitive Compared To The Region
When compared with other Asia Pacific countries, Malaysia is still in a relatively comfortable position. Malaysia’s inflation rate of 1.3 percent is lower than Vietnam’s 3.3 percent, Indonesia’s 2.9 percent and South Korea’s 2.4 percent.
For Malaysians managing household budgets, this creates a mixed but manageable landscape. Inflation is mild, which means the cost of living isn’t spiking overnight.
Essential items, especially food, are stabilising, and in Kelantan’s case, even dipping. At the same time, everyday services such as dining out, personal care and accommodation continue to rise, which is why urban families, in particular, may still feel financially stretched even when headline inflation looks calm.
A Wider Look
Taken together, the numbers suggest that Malaysia is entering a period of relative price stability. Inflation is under control, food prices are no longer climbing aggressively and Malaysia remains more affordable than many neighbouring economies. This creates breathing room for households, especially after several difficult years of global disruptions.
However, the comfort is not uniform. Big-city costs continue to grow, particularly for services that rely on manpower, lifestyle spending and imported goods. This means Malaysians in KL, Selangor or Johor will continue to feel the squeeze more than those in Kelantan or Perlis.
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