Malaysia’s annual inflation rate inched up to 1.9% in August 2026, slightly above both market expectations of 1.8% and July’s four-month low, yet it remained well within Bank Negara Malaysia’s target range of 1½% to 2½%. Price growth quickened across several major categories, including food and non-alcoholic beverages (1.9% vs 1.8% in July), alcoholic beverages and tobacco (2.8% vs 2.7%), housing (2.1% vs 1.8%), furnishings and household equipment (0.4% vs 0.3%), health (1.3% vs 1.1%), transport (2.0% vs 1.4%), restaurants and accommodation services (2.1% vs 2.0%), and miscellaneous goods and services (3.2% vs 2.9%).
Clothing inflation was unchanged at 0.1%. Meanwhile, price pressures eased in information and communication (2.6% vs 3.4%), recreation and culture (1.1% vs 1.2%), education (1.9% vs 2.0%), and insurance and financial services (1.0% vs 1.1%). Core inflation edged down to 1.7% in August, its lowest level since December 2024, from 1.8% in July. On a monthly basis, consumer prices rose 0.3%, rebounding from a flat reading in July.
