Malaysia’s annual inflation rate eased to 1.8% in July 2026, down from 1.9% in June, marking the lowest level since March. The rate remained comfortably within Bank Negara Malaysia’s target range of 1.5% to 2.5%, reflecting slower price growth across most categories. Notable decelerations were recorded in transport (1.4% vs 2.8% in June), alcoholic beverages and tobacco (2.7% vs 2.9%), furnishings and household equipment (0.3% vs 0.4%), health (1.1% vs 1.2%), education (2.0% vs 2.1%), restaurants and accommodation services (2.0% vs 2.6%), insurance and financial services (1.1% vs 5.7%), and miscellaneous goods and services (2.9% vs 3.4%).
At the same time, inflation quickened in several categories, including food and beverages (1.8% vs 1.4%), housing and utilities (1.8% vs 1.4%), information and communication (3.4% vs 2.4%), and recreation and culture (1.2% vs 1.1%). Core inflation, which excludes fuel, edged down to 1.8% in July from 1.9% in June. On a monthly basis, consumer prices were flat, with no change from the previous month.
