MALAYSIA’S inflation rate eased to 1.8 per cent in July 2026 from 1.9 per cent in June, as price growth moderated across several major consumer expenditure groups, according to the Department of Statistics Malaysia (DOSM).
The Consumer Price Index (CPI) rose to 137.1 points in July from 134.7 points in the same month last year.
The moderation was led by the Transport group, where prices increased 1.4 per cent in July compared with 2.8 per cent in June.
Personal Care, Social Protection and Miscellaneous Goods and Services also recorded slower growth at 2.9 per cent, down from 3.4 per cent previously.
Alcoholic Beverages and Tobacco increased 2.7 per cent compared with 2.8 per cent in June, while Restaurants and Accommodation Services rose 2.0 per cent compared with 2.6 per cent.
Education prices increased 2.0 per cent, compared with 2.1 per cent in the previous month.
Insurance and Financial Services recorded the sharpest moderation among the major groups, with prices rising 1.1 per cent compared with 5.7 per cent in June, while Health prices increased 1.1 per cent from 1.2 per cent.
Household Furnishings, Equipment and Maintenance recorded marginal growth of 0.3 per cent, compared with 0.4 per cent previously.
However, several categories recorded faster price increases in July.
Information and Communication prices rose 3.4 per cent from 2.4 per cent in June, while Food and Beverages and Housing, Water, Electricity, Gas and Other Fuels each increased 1.8 per cent from 1.4 per cent.
Recreation, Sport and Culture rose 1.2 per cent from 1.1 per cent, while Clothing and Footwear recorded a 0.1 per cent increase after registering no growth in June.
Food Prices Accelerate
Food and Beverages, which carries a 29.8 per cent weighting in the overall CPI, recorded inflation of 1.8 per cent in July, up from 1.4 per cent in June.
The increase was driven by higher prices in both the Food Away From Home and Food at Home subgroups.
Food Away From Home inflation accelerated to 2.5 per cent from 2.4 per cent, while Food at Home rose 1.2 per cent compared with 0.5 per cent previously.
Negeri Sembilan Records Highest State Inflation
Seven states recorded inflation above the national rate of 1.8 per cent.
Negeri Sembilan recorded the highest rate at 2.5 per cent, followed by Kedah and Pahang at 2.3 per cent each.
Kuala Lumpur recorded inflation of 2.2 per cent, while Johor registered 2.1 per cent. Another state recorded 2.0 per cent, while Sabah posted 1.9 per cent.
All states recorded an increase in Food and Beverages prices except Kelantan and Labuan, which recorded no change. - August 17, 2026
