Malaysia Inflation Rate

Malaysia’s inflation rate edged down to 1.8% year-on-year in September 2026 from 1.9% in the previous month, though it remained comfortably within Bank Negara’s 1-½%-2-½% target range. Price growth moderated for food and non-alcoholic beverages (1.8% vs 1.9% in August), housing and utilities (1.4% vs 2.1%), furnishings and household equipment (0.3% vs 0.4%), information and communication (1.8% vs 2.6%), and miscellaneous goods and services (2.8% vs 3.2%). On the other hand, inflation remained steady for alcoholic beverages and tobacco (at 2.8%), while costs recorded increases in clothing and footwear (0.2% vs 0.1%), health (1.4% vs 1.3%), transportation (2.5% vs 2.0%), recreation and culture (1.2% vs 1.1%), education (2.1% vs 1.9%), restaurants and hotels (2.2% vs 2.1%), and insurance and financial services (1.2% vs 1.0%). On a monthly basis, consumer prices eased to 0.1% in September from a four-month high of 0.3% in August.

Malaysia’s annual inflation rate edged up to 1.9% in August 2026, above the 1.8% market forecast and July’s four-month low, while remaining comfortably within Bank Negara’s 1-1/2%-2-1/2% target range. Price growth accelerated for food and beverages (1.9% vs 1.8% in July), alcoholic beverages and tobacco (2.8% vs 2.7%), housing (2.1% vs 1.8%), furnishings and household equipment (0.4% vs 0.3%), health (1.3% vs 1.1%), transport (2.0% vs 1.4%), restaurants and accommodation services (2.1% vs 2.0%), and miscellaneous goods and services (3.2% vs 2.9%). In the meantime, clothing inflation was unchanged at 0.1%, while cost eased for information and communication (2.6% vs 3.4%), recreation and culture (1.1% vs 1.2%), education (1.9% vs 2.0%), and insurance and financial services (1.0% vs 1.1%). Core inflation fell to 1.7%, its lowest since December 2024, from 1.8% in July. On a monthly basis, consumer prices rose 0.3%, rebounding from July’s flat reading.

The annual inflation rate in Malaysia edged down to 1.8% in July 2026 from 1.9% in the previous month. It marked the lowest reading since March and remained comfortably within Bank Negara Malaysia's target range of 1.5% to 2.5%, driven by slower price growth across most categories, notably transport (1.4% vs 2.8% in June), alcoholic beverages and tobacco (2.7% vs 2.9%), furnishings and household equipment (0.3% vs 0.4%), health (1.1% vs 1.2%), education (2% vs 2.1%), restaurants and accommodation services (2% vs 2.6%), insurance and financial services (1.1% vs 5.7%), and miscellaneous goods and services (2.9% vs 3.4%). Meanwhile, inflation accelerated for food and beverages (1.8% vs 1.4%), housing and utilities (1.8% vs 1.4%), information and communication (3.4% vs 2.4%), and recreation and culture (1.2% vs 1.1%). Core inflation, which excludes fuel, ticked lower to 1.8% from 1.9% in June. On a monthly basis, consumer prices stalled in July, unchanged from the previous month.