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Malaysia's Inflation Slows To 1.9 Pct In June 2026

KUALA LUMPUR, July 17 (Bernama) -- Malaysia’s inflation rose at a slower pace of 1.9 per cent in June 2026 as compared with 2.0 per cent in the previous month, according to the Department of Statistics Malaysia (DOSM).

DOSM said the slower increase was mainly due to the transport group, which rose to 2.8 per cent from 3.8 per cent in the previous month.

The department said the personal care, social protection and miscellaneous goods and services as well as education groups also recorded slower increases of 3.4 per cent (May 2026: 4.8 per cent) and  2.1 per cent (May 2026: 2.2 per cent), respectively. 

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“The insurance and financial services group registered an increase to 5.7 per cent in June 2026 as compared with 4.9 per cent in the previous month. This was followed by the restaurant and accommodation services group, which also recorded a higher increase of 2.6 per cent in June 2026 (May 2026: 2.5 per cent),” it said.

DOSM said the information and communication group recorded an increase of 2.4 per cent in June 2026  (May 2026: 2.1 per cent); the housing, water, electricity, gas and other fuels group rose to 1.4 per cent from 1.2 per cent in May 2026.

“Five groups remained at the same rate as in May 2026, namely alcoholic beverages and tobacco (2.8 per cent); food and beverages (1.4 per cent); health (1.2 per cent); recreation, sport and culture (1.1 per cent) and furnishings, household equipment and routine household maintenance (0.4 per cent).

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“Meanwhile, the clothing and footwear group did not register any increase in June 2026 (May 2026: -0.1 per cent),” it said. 

The department noted that about 65.1 per cent of items (373 out of 573) recorded price increases. 

“Nonetheless, out of this total, 365 items (97.9 per cent) registered an increase of less than or equal to 10 per cent, while only eight items recorded increases of more than 10 per cent in June 2026.

“The remaining 155 items (27.1 per cent) showed a decline, while 45 items remained unchanged,” it explained.

DOSM pointed out that seven states recorded increases above the national inflation level (1.9 per cent), namely Pahang (2.6 per cent), Johor (2.5 per cent), Negeri Sembilan (2.5 per cent), Wilayah Persekutuan Labuan (2.3 per cent), Wilayah Persekutuan Kuala Lumpur (2.2 per cent), Kedah (2.0 per cent) and Wilayah Persekutuan Putrajaya (2.0 per cent).

“All states registered an increase in inflation for food and beverages except Kelantan (-0.7 per cent),” it said. 

According to DOSM, Malaysia’s inflation for the second quarter of 2026 increased by 1.9 per cent  (1Q 2026: 1.6 per cent).

“Among the groups that recorded increases as compared with the previous quarter were insurance and financial services (5.2 per cent); transport (3.6 per cent); alcoholic beverages and tobacco (2.8 per cent); information and communication (2.1 per cent); housing, water, electricity, gas and other fuels (1.2 per cent); recreation, sport and culture (1.0 per cent) and furnishings, household equipment and routine household maintenance (0.4 per cent).

“However, the slower increases in personal care, social protection and miscellaneous goods and services (4.3 per cent); restaurant and accommodation services (2.6 per cent); education (2.2 per cent) and health (1.3 per cent), to a certain extent, eased Malaysia's inflation in the second quarter of 2026,” it added. 

-- BERNAMA