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Home News Business

Malaysia's inflation eases to 1.9% in June

by thesun
July 19, 2026
in Business
Reading Time: 2 mins read
Summarize with ChatGPTSummarize with Perplexity

KUALA LUMPUR: Malaysia’s inflationrose at a slower pace of1.9% in June 2026 compared with2% in the previous month, according to the Department of Statistics Malaysia (DoSM).

The slower increase wasmainly due tothe transport group, which rose 2.8% in June, down from 3.8% in the previous month.

DoSM said the personal care, social protection andmiscellaneous goods andservices as well aseducation groups recorded slower increasesof3.4% (May 2026: 4.8%) and 2.1% (May 2026: 2.2%), respectively.

“The insurance andfinancial services group registered an increase to 5.7% in June 2026 compared with4.9% in the previous month. This was followed by the restaurant andaccommodation services group, which also recorded a higher increase of 2.6% in June 2026 (May 2026: 2.5%),” itsaid.

DoSM said the information andcommunication group recorded an increase of 2.4% in June (May: 2.1%);the housing, water, electricity, gas andother fuels group roseto 1.4% from 1.2% in May.

“Five groups remained at the same rate as in May 2026, namely alcoholic beverages andtobacco (2.8%); food andbeverages (1.4%); health (1.2%); recreation, sport andculture (1.1%) and furnishings, household equipment androutine household maintenance (0.4%).

“Meanwhile, the clothing andfootwear group did not register any increase in June 2026 (May 2026: -0.1%),” itsaid.

The department noted thatabout 65.1% of items (373 out of 573) recorded price increases.

“Nonetheless, out of this total, 365 items (97.9%) registered an increase of less than or equal to 10%, while only eightitems recorded increases of more than 10% inJune 2026. The remaining 155 items (27.1%) showed a decline, while45 items remained unchanged.”

DoSM saidseven states or federal territories recorded increases above the national inflation level (1.9%), namely Pahang (2.6%), Johor (2.5%), Negeri Sembilan (2.5%), Labuan (2.3%), Kuala Lumpur (2.2%), Kedah (2%) and Putrajaya (2%).

All states registered an increase in inflation for food andbeverages except Kelantan (-0.7%).

According to DoSM, Malaysia’s inflation rate for the second quarter of 2026 was1.9%(Q1 2026: 1.6%).

“Among the groups that recorded increases compared withthe previous quarter were insurance andfinancial services (5.2%); transport (3.6%); alcoholic beverages andtobacco (2.8%); information andcommunication (2.1%); housing, water, electricity, gas andother fuels (1.2%); recreation, sport and culture (1%) and furnishings, household equipment androutine householdmaintenance (0.4%).

“However, slower increases in personal care, social protection andmiscellaneous goods andservices (4.3%); restaurant andaccommodationservices (2.6%); education (2.2%) and health (1.3%), to a certain extent, eased Malaysia’s inflation in the second quarter of 2026,” it added.

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