Malaysian inflation eased to 1.8 percent in July 2026; transport inflation slowed to 1.4 percent

The Consumer Price Index rose 1.8 percent year on year in July 2026, compared with 1.9 percent in June 2026, in the Consumer Price Index release the Department of Statistics Malaysia published on 17 August 2026. The index level itself stood at 137.1 in July 2026 against 134.7 in July 2025. On a month on month basis the headline index was unchanged at 0.0 percent.

Transport is the group behind most of the annual step down. Transport inflation was 1.4 percent in July 2026 compared with 2.8 percent in June 2026, and on a month on month basis transport prices fell 1.1 percent. Two other groups moved the opposite way over the same month. Food and beverages inflation and housing, water, electricity, gas and other fuels inflation were each 1.8 percent in July 2026, compared with 1.4 percent for each in June 2026. Information and communication inflation was 3.4 percent, compared with 2.4 percent in June 2026.

The national rate was not the rate recorded everywhere. Five states and the Federal Territories of Kuala Lumpur and Labuan recorded inflation above the national rate of 1.8 percent: Negeri Sembilan at 2.5 percent, Kedah and Pahang at 2.3 percent, Kuala Lumpur at 2.2 percent, Johor at 2.1 percent, Labuan at 2.0 percent and Sabah at 1.9 percent.

Bank Negara Malaysia reported the same July movement in Monetary and Financial Developments in July 2026, published on 28 August 2026. It put headline inflation at 1.8 percent year on year in July 2026 against 1.9 percent in June 2026, and core inflation also at 1.8 percent in July against 1.9 percent in June. Headline and core therefore stood at the same 1.8 percent rate in July, each 0.1 percentage point below its June figure.

Read together, the two releases establish the July position and the June comparison behind it. Neither release states a rate for any month after July 2026, and neither is read here as one.