Malaysia Inflation Highest in Nearly 2 Years

The annual inflation rate in Malaysia rose to 2.0% in May 2026 from 1.9% in April, below expectations of 2.1%, but still marking the highest reading since July 2024. The pickup reflected firmer price pressures, notably in food & beverages (1.4% vs 1.2% in April), housing & utilities (1.2% vs 1.1%), information & communication (2.1% vs 2.0%), and recreation, sport & culture (1.1% vs 0.9%). Meanwhile, price growth slowed for transport (3.8% vs 4.1%), driven by lower costs for the purchase of vehicles and for transport services of goods, which remained in negative territory at -0.2% and -1.3%, respectively, partially offsetting increases in public transport services (6.8%) and the operation of personal transport equipment (4.2%). Core inflation, measured as CPI excluding fuel, stood at 2% in May, unchanged from April. On a monthly basis, consumer prices rose 0.1%, the smallest increase in four months and moderating from a 0.4% gain in April.

The annual inflation rate in Malaysia accelerated to 1.9% in April 2026 from 1.7% in the prior month, marking the highest reading since October 2024 and aligning with market forecasts. Upward price pressures came from most components, including food & beverages (1.2% vs 1.1% in March), alcoholic beverages and tobacco (2.8% vs 2.7%), housing (1.1% vs 1.2%), transport (4.1% vs 1.6%), furnishings and household maintenance (0.4% vs 0.1%), health (1.4% vs 1.4%), information and communication (2.0% vs 1.4%), education (2.4% vs 2.5%), restaurants and accommodation services (2.6% vs 2.6%), financial services (4.9% vs 4.9%), and personal care & miscellaneous goods & services (4.8% vs 7.0%). In contrast, clothing prices continued to fall (-0.1% vs -0.1%). Core inflation, which excludes volatile fresh food and administered prices, edged down to 2.0% from 2.1% in March. Monthly, consumer prices rose 0.4%, following a 0.3% gain in March and pointing to the steepest pace since February 2025.

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.