Overview

Malaysia's inflation increased 2.0 per cent in May 2026

Malaysia’s inflation increased 2.0 per cent in May 2026 with the index points increased to 137.1 from 134.4 in the same month of the previous year. Four groups registered higher inflation in May 2026, namely Information & Communication, 2.1 per cent (April 2026: 2.0%); Food & Beverages, 1.4 per cent (April 2026: 1.2%); Housing, Water, Electricity, Gas & Other Fuels, 1.2 per cent (April 2026: 1.1%) and Recreation, Sport & Culture, 1.1 per cent (April 2026: 0.9%). Concurrently, inflation moderated for Transport at 3.8 per cent (April 2026: 4.1%); Restaurant & Accommodation Services, 2.5 per cent (April 2026: 2.6%); Education, 2.2 per cent (April 2026: 2.4%) and Health, 1.2 per cent (April 2026: 1.4%).

The groups which the inflation rate remained the same were Insurance & Financial Services (4.9%); Personal Care, Social Protection & Miscellaneous Goods & Services (4.8%); Alcoholic Beverages & Tobacco (2.8%) and Furnishings, Household Equipment & Routine Household Maintenance (0.4%). Meanwhile, Clothing & Footwear group declined to negative 0.1 per cent in May 2026 (April 2026: -0.1%).

Eight states recorded increases above the national inflation level (2.0%), namely Pahang (2.8%), Negeri Sembilan (2.6%), Wilayah Persekutuan Labuan (2.6%), Johor (2.5%), Wilayah Persekutuan Kuala Lumpur (2.4%), Kedah (2.2%), Wilayah Persekutuan Putrajaya (2.2%) and Melaka (2.1%). However, the remainder eight states recorded increases below and equal to the national inflation rate, with Sarawak registered the lowest inflation (0.5%) in May 2026.

On month-on-month basis, the headline inflation in May 2026 registered marginal increase of 0.1 per cent as compared to 0.4 per cent in April 2026. Six out of 13 groups recorded increases in May 2026, namely Housing, Water, Electricity, Gas & Other Fuels, 0.5 per cent (April 2026: -0.1%); Food & Beverages, 0.3 per cent (April 2026: 0%); Restaurant & Accommodation Services, 0.3 per cent (April 2026: 0.4%); Furnishings, Household Equipment & Routine Household Maintenance, 0.1 per cent (April 2026: 0.2%); Recreation, Sport & Culture, 0.1 per cent (April 2026: 0.3%) and Education, 0.1 per cent (April 2026: 0.2%). Meanwhile, the inflation for Transport, negative 0.5 per cent (April 2026: 2.5%); Health, negative 0.1 per cent (April 2026: 0.2%) and Personal Care, Social Protection & Miscellaneous Goods & Services, negative 0.1 per cent (April 2026: -0.7%) were in negative territory in May 2026. The remaining groups, Alcoholic Beverages & Tobacco, Clothing & Footwear, Information & Communication and Insurance & Financial Services did not show any increase in May 2026.

In comparison to inflation in other selected countries, inflation in Malaysia in May 2026 (2.0%) was lower than inflation in Philippines (6.8%), Viet Nam (5.6%), Republic of Korea (3.1%), Indonesia (3.1%) and Thailand (2.8%). However, the rate was higher than China (1.2%).

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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