Overview

Malaysia's inflation increased 1.8 per cent in July 2026

Malaysia’s inflation increased 1.8 per cent in July 2026 as compared to 1.9 per cent in the previous month, with the index points increased to 137.1 from 134.7 (July 2025). This was driven by the Transport group which increased to 1.4 per cent as compared to 2.8 per cent in June 2026.

The Personal Care, Social Protection & Miscellaneous Goods & Services group moderated at 2.9 per cent  in July 2026 as compared to 3.4 per cent in June 2026. This was followed by slower increases in Alcoholic Beverages & Tobacco, 2.7 per cent (June 2026: 2.8%); Restaurant & Accommodation Services, 2.0 per cent (June 2026: 2.6%) and Education, 2.0 per cent (June 2026: 2.1%). Both Insurance & Financial Services and Health groups eased to 1.1 per cent in July 2026 as compared to 5.7 per cent and 1.2 per cent in the previous month, respectively. Besides, the Furnishings, Household Equipment & Routine Household Maintenance group increased marginally at 0.3 per cent (June 2026: 0.4%).

The Information & Communication group increased to 3.4 per cent in July 2026 as compared to 2.4 per cent in June 2026. The Food & Beverages and Housing, Water, Electricity, Gas & Other Fuels groups increased higher in July 2026 to 1.8 per cent as compared to 1.4 per cent in the previous month. Besides, the Recreation, Sport & Culture and Clothing & Footwear groups increased to 1.2 per cent (June 2026: 1.1%) and 0.1 per cent (June 2026: 0.0%), respectively.

Seven states recorded increases above the national inflation level of 1.8 per cent, namely Negeri Sembilan (2.5%), Kedah (2.3%), Pahang (2.3%), Wilayah Persekutuan Kuala Lumpur (2.2%), Johor (2.1%), Wilayah Persekutuan Labuan (2.0%) and Sabah (1.9%). All states registered an increase in Food & Beverages inflation, except Kelantan and Wilayah Persekutuan Labuan, which recorded no increase.

On month-on-month basis, the headline inflation in July 2026 did not register any increase (June 2026: 0.0%). The Food & Beverages group increased 0.3 per cent in July 2026 (June 2026: 0.2%), while Recreation, Sport & Culture and Restaurant & Accommodation Services groups increased marginally at 0.2 per cent as compared to 0.1 per cent in June 2026, respectively. Both Alcoholic Beverages & Tobacco and Education groups increased at 0.1 per cent in July 2026, the same rate as recorded in the previous month. Meanwhile, two groups recorded decreases in July 2026, namely Transport (-1.1%) and Personal Care, Social Protection & Miscellaneous Goods & Services (-0.5%).

The headline inflation for the period of January to July 2026 increased 1.8  per cent as against 1.4 per cent as recorded in the same period of 2025. The increase was attributed by significant increase in Personal Care, Social Protection & Miscellaneous Goods & Services, 5.2 per cent; Insurance & Financial Services, 4.5 per cent; Alcoholic Beverages & Tobacco, 2.7 per cent; Restaurant & Accommodation Services, 2.5 per cent; Education, 2.4 per cent; Transport, 1.7 per cent; Information & Communication, 1.7 per cent and Health, 1.3 per cent.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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