Inflation picks up to 1.9% as transport, food prices rise

MALAYSIA’S inflation accelerated to 1.9 per cent in August from 1.8 per cent in July as price pressures broadened across transport, food, housing and restaurant services, with transport recording the sharpest increase.

The Department of Statistics Malaysia (DOSM) said transport inflation accelerated to 2.0 per cent in August from 1.4 per cent in July, driven by faster increases in public transport services and the operation of personal transport equipment.

Inflation for public transport services jumped to 10.5 per cent from 6.5 per cent, while that for personal transport equipment rose to 1.8 per cent from 1.3 per cent.

The average market price of RON97 petrol increased to RM4.28 a litre in August from RM4.07 in July, while diesel rose to RM4.60 from RM4.14.

The average market price of RON95 also rose to RM3.75 a litre from RM3.47, compared with the subsidised price of RM1.99 a litre.

Food and beverages, which carry a 29.8 per cent weight in the Consumer Price Index, recorded inflation of 1.9 per cent, up from 1.8 per cent in July.

Food-at-home inflation increased to 1.4 per cent from 1.2 per cent, while food-away-from-home inflation remained unchanged at 2.5 per cent.

Housing, water, electricity, gas and other fuels recorded inflation of 2.1 per cent, up from 1.8 per cent, while restaurant and accommodation services rose to 2.1 per cent from 2.0 per cent.

The department said the increase in housing-related inflation was driven by the electricity, gas and other fuels subgroup, which rose to 3.3 per cent from 2.0 per cent.

This was attributed to a revision in the automatic fuel adjustment rate imposed on domestic users in Peninsular Malaysia with electricity consumption above 600 kilowatt-hours.

Personal care, social protection and miscellaneous goods and services recorded the highest inflation among the major groups at 3.2 per cent, up from 2.9 per cent.

Alcoholic beverages and tobacco inflation also increased to 2.8 per cent from 2.7 per cent.

On a month-on-month basis, headline inflation rose 0.3 per cent in August after remaining unchanged in July.

Transport prices increased 0.6 per cent month-on-month after declining 1.1 per cent in July, while personal care, social protection and miscellaneous goods and services rose 0.5 per cent.

Housing, water, electricity, gas and other fuels and restaurant and accommodation services each increased 0.4 per cent.

Food and beverage prices rose at a slower pace of 0.2 per cent, compared with 0.3 per cent in July.

At state level, nine states and federal territories recorded inflation above the national rate of 1.9 per cent.

Negeri Sembilan recorded the highest inflation at 2.5 per cent, followed by Johor, Kedah, Pahang and Labuan at 2.3 per cent each.

Selangor and Kuala Lumpur recorded inflation of 2.1 per cent each, while Melaka and Putrajaya registered 2.0 per cent.

All states recorded higher food and beverage inflation except Kelantan, which posted a decline in August. - September 18, 2026