Malaysia Inflation Rate Hits 14-Month High

The annual inflation rate in Malaysia accelerated to 1.7% in March 2026 from 1.4% in the prior month, marking the highest reading since January 2025 and aligning with market estimates. Upward price pressures came from most components, including alcoholic beverages and tobacco (2.7% vs 2.6% in February), housing (1.2% vs 1.1%), health (1.4% vs 1.2%), information and communication (1.4% vs 0.5%), education (2.5% vs 2.8%), restaurants and accommodation services (2.6% vs 2.5%), and personal care & miscellaneous goods & services (7.0% vs 6.9%). Meanwhile, food prices increased 1.1%, the least in six years, after a 1.3% gain in February. Cost of furnishings and household maintenance was muted (0.1% vs 0.2%), while clothing prices edged lower. Core inflation, which excludes volatile fresh food and administered prices, edged up to 2.1% from February's six-month low of 2.0%. Monthly, consumer prices rose 0.3%, following a 0.2% gain in February and indicating the fastest pace in three months.

The annual inflation rate in Malaysia slowed to 1.4% in February 2026 from an eleven-month high of 1.6% in the previous month and below market forecast of 1.6%. The latest figure marked the lowest reading since November last year, driven by slower price increases for food and beverages (1.3% vs 1.5% in January), health (1.2% vs 1.4%), and information and communication (0.5% vs 0.7%). Inflation also softened for education (2.8% vs 3.2%) and restaurants and accommodation services (2.5% vs 3%). On the other hand, costs increased further for alcoholic beverages and tobacco (2.6% vs 2.5%), personal care, social protection & miscellaneous goods & services (6.9% vs 6.6%), while it remained steady for furnishings, household equipment and maintenance (at 0.2%). Core inflation, which excludes volatile fresh food and administered prices, eased to 2% from 2.3% in January, marking the softest in six months. On a monthly basis, consumer prices rose by 0.2%, following a 0.1% gain in January.

Malaysia’s annual inflation held at 1.6% in January 2026, unchanged from the previous month and in line with market expectations. The latest reading remained at its highest level since January 2025, as upward price pressures came from most components, including food & drinks (1.5% vs 1.5% in December), alcoholic beverages & tobacco (2.5% vs 2.5%), housing (1.2% vs 0.9%), furnishing (0.2% vs 0.3%), health (1.4% vs 1.5%), communication (0.7% vs 0.9%), recreation (0.9% vs 0.8%), education (3.2% vs 2.8%), restaurants & accommodation services (3.0% vs 3.1%), insurance & financial services (5.5% vs 5.6%), and miscellaneous items (6.6% vs 5.7%). Meanwhile, clothing prices were flat after falling 0.1% previously. In contrast, transport cost fell 0.7%, reversing a 0.1% gain in December. Core inflation, which excludes volatile fresh food and administered prices, stayed steady at 2.3% yoy, its highest since October 2023. Monthly, consumer prices edged up 0.1%, easing from a 0.3% rise in December.