Overview

Malaysia's inflation increased 1.9 per cent in June 2026

Malaysia’s inflation increased 1.9 per cent in June 2026 as compared to 2.0 per cent in the previous month, with the index points increased to 137.1 from 134.5 (June 2025). It was mainly contributed by the Transport group which increased to 2.8 per cent as compared to 3.8 per cent in the previous month. The Personal Care, Social Protection & Miscellaneous Goods & Services and Education groups also recorded slower increases to 3.4 per cent (May 2026: 4.8%) and 2.1 per cent (May 2026: 2.2%), respectively.

The Insurance & Financial Services group registered an increase to 5.7 per cent in June 2026 as compared to 4.9 per cent in the previous month. This was followed by the Restaurant & Accommodation Services group, which also recorded a higher increase of 2.6 per cent in June 2026 (May 2026: 2.5%). The Information & Communication group recorded an increase of 2.4 per cent in June 2026 (May 2026: 2.1%). In addition, the Housing, Water, Electricity, Gas & Other Fuels group increased to 1.4 per cent as compared to 1.2 per cent in May 2026.

Seven states recorded increases above the national inflation level (1.9%), namely Pahang (2.6%), Johor (2.5%), Negeri Sembilan (2.5%), Wilayah Persekutuan Labuan (2.3%), Wilayah Persekutuan Kuala Lumpur (2.2%), Kedah (2.0%) and Wilayah Persekutuan Putrajaya (2.0%). All states registered an increase in inflation for Food & Beverages except Kelantan (-0.7%).

On month-on-month basis, the headline inflation in June 2026 did not register any increase as compared to May 2026 (0.1%). The Insurance & Financial Services group increased 0.8 per cent in June 2026 (May 2026: 0.0%). Three groups recorded slower increases in June 2026, namely Food & Beverages, 0.2 per cent (May 2026: 0.3%); Housing, Water, Electricity, Gas & Other Fuels, 0.2 per cent (May 2026: 0.5%) and Restaurant & Accommodation Services, 0.1 per cent (May 2026: 0.3%). The inflation rates for the Recreation, Sport & Culture and Education groups remained unchanged from the previous month at 0.1 per cent, respectively. Meanwhile, two groups recorded decreases in June 2026, namely Personal Care, Social Protection & Miscellaneous Goods & Services (-0.9%) and Transport (-0.8%). The Clothing & Footwear; Furnishings, Household Equipment & Routine Household Maintenance; Health and Information & Communication did not record any increase in June 2026, respectively.

Malaysia’s inflation for the second quarter of 2026 increased at 1.9 per cent (Q1 2026: 1.6%). Among the groups that recorded increases as compared to the previous quarter were Insurance & Financial Services (5.2%); Transport (3.6%); Alcoholic Beverages & Tobacco (2.8%); Information & Communication (2.1%); Housing, Water, Electricity, Gas & Other Fuels (1.2%); Recreation, Sport & Culture (1.0%) and Furnishings, Household Equipment & Routine Household Maintenance (0.4%). However, the slower increases in Personal Care, Social Protection & Miscellaneous Goods & Services (4.3%); Restaurant & Accommodation Services (2.6%); Education (2.2%) and Health (1.3%), to a certain extend eased the Malaysia's inflation in the second quarter of 2026.

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Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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