Overview

Malaysia's inflation increased at 1.7 per cent in March 2026

Malaysia’s inflation increased at 1.7 per cent in March 2026 with the index points increased to 136.4 from 134.1 in the same month of the previous year. Inflation in March 2026 was mainly driven by an increase of Transport group to 1.6 per cent from 0.7 per cent in February 2026. Besides, Malaysia’s inflation also contributed by increases in Personal Care, Social Protection & Miscellaneous Goods & Services, 7.0 per cent; Insurance & Financial Services, 4.9 per cent; Alcoholic Beverages & Tobacco, 2.7 per cent; Restaurant & Accommodation Services, 2.6 per cent; Health, 1.4 per cent; Information & Communication, 1.4 per cent; Housing, Water, Electricity, Gas & Other Fuels, 1.2 per cent and Recreation, Sport & Culture, 1.0 per cent. Nevertheless, the groups of Education, 2.5 per cent; Food & Beverages, 1.1 per cent and Furnishings, Household Equipment & Routine Household Maintenance, 0.1 per cent moderated as compared to the previous month. Meanwhile, Clothing & Footwear group recorded a marginal decrease to negative 0.1 per cent in March 2026 as compared to the same month of the previous year.

Eight states recorded increases above the national inflation level (1.7%), namely Pahang (2.5%), Wilayah Persekutuan Labuan (2.4%), Negeri Sembilan (2.2%), Wilayah Persekutuan Kuala Lumpur (2.2%), Sabah (2.1%), Johor (2.0%), Kedah (1.9%) and Pulau Pinang (1.8%). However, the remainder eight states increased below and equal to the national inflation rate with Kelantan recorded the lowest inflation (0.7%) in March 2026.

The monthly headline inflation in March 2026 increased to 0.3 per cent as compared to 0.2 per cent in February 2026. This was driven by the group of Transport, 2.1 per cent; Information & Communication, 0.8 per cent; Insurance & Financial Services, 0.3 per cent; Health, 0.2 per cent; Recreation, Sport & Culture, 0.2 per cent and Education, 0.2 per cent. Meanwhile, inflation for two groups eased in March 2026 namely Housing, Water, Electricity, Gas & Other Fuels, 0.1 per cent and Personal Care, Social Protection & Miscellaneous Goods & Services, 0.4 per cent. The groups of Food & Beverages; Clothing & Footwear; Furnishings, Household Equipment & Routine Household Maintenance and Restaurant & Accommodation Services recorded decreases to negative 0.1 per cent respectively in March 2026 as compared to the previous month.

Inflation for the first quarter of 2026 increased higher at 1.6 per cent as compared to 1.3 per cent in fourth quarter of 2025. This was contributed by Personal Care, Social Protection & Miscellaneous Goods & Services group, 6.9 per cent; Education, 2.8 per cent; Alcoholic Beverages & Tobacco, 2.6 per cent; Housing, Water, Electricity, Gas & Other Fuels, 1.1 per cent and Information & Communication, 0.8 per cent. As for quarter-on-quarter comparison, Malaysia’s inflation also increased higher at 0.6 per cent as compared to 0.2 per cent in the previous quarter.

In comparison to inflation in other selected countries, inflation in Malaysia in March 2026 (1.7%) was lower than inflation in Viet Nam (4.7%), Philippines (4.1%), Indonesia (3.5%), and Republic of Korea (2.2%). However, the rate was higher than China (1.0%) and Thailand (-0.1%).

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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