Overview

Malaysia's inflation increased slower at 1.4 per cent in February 2026

Inflation for Clothing & Footwear group did not record any changes in February 2026 as compared to the previous year. However, Transport group still registered a decrease to negative 0.7 per cent in February 2026. Meanwhile, Personal Care, Social Protection & Miscellaneous Goods & Services, 6.9 per cent and Alcoholic Beverages & Tobacco, 2.6 per increased higher in February 2026 as compared to the previous month.

Eight states recorded increases above the national inflation level (1.4%), namely Pahang (2.1%), Wilayah Persekutuan Labuan (2.1%), Negeri Sembilan (2.0%), Sabah (1.8%), Johor (1.7%), Pulau Pinang (1.6%), Terengganu (1.6%) and Wilayah Persekutuan Kuala Lumpur (1.6%). However, the remainder eight states increased below and equal to the national inflation rate with Kelantan recorded the lowest inflation (0.2%) in February 2026. All states registered an increase in inflation of Food & Beverages except Kelantan (-0.7%). Seven states recorded increases over the national inflation of Food & Beverages (1.3%) in February 2026. The highest increase was recorded by Negeri Sembilan (3.0%), followed by Pahang (2.3%), Johor (2.1%), Wilayah Persekutuan Kuala Lumpur (1.8%), Pulau Pinang (1.7%), Kedah (1.6%) and Melaka (1.4%). Meanwhile, other states showed increases below and equal to the national inflation of Food & Beverages.

The monthly headline inflation in February 2026 increased marginally at 0.2 per cent as compared to 0.1 per cent in January 2026. This was driven by the group of Housing, Water, Electricity, Gas & Other Fuels, 0.7 per cent; Transport, 0.2 per cent and Clothing & Footwear, 0.1 per cent. Meanwhile, five groups did not record any monthly changes in February 2026, namely Food & Beverages; Furnishings, Household Equipment & Routine Household Maintenance; Health; Recreation, Sport & Culture and Insurance & Financial Services. However, Information & Communication group still registered a decrease in February 2026 at negative 0.2 per cent.

In comparison to inflation in other selected countries, inflation in Malaysia in February 2026 (1.4%) was lower than inflation in Indonesia (4.8%), Viet Nam (3.4%), Philippines (2.4%) and Republic of Korea (2.0%). However, the rate was higher than China (1.3%) and Thailand (-0.9%).

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Phone: 03 8090 4681

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