Malaysia’s inflation rate rose to 1.9% in August 2026 from 1.8% the previous month, driven mainly by higher transport costs, according to the Department of Statistics Malaysia (DOSM).
DOSM said the Transport group recorded a 2% increase in August, up from 1.4% in July.
The Food & Beverages group, which accounts for 29.8% of the overall Consumer Price Index (CPI) weighting, also increased 1.9% in August compared with 1.8% the month before.
Meanwhile, the Housing, Water, Electricity, Gas & Other Fuels group rose 2.1% in August from 1.8% in July.
DOSM said the increase was driven by the Electricity, Gas & Other Fuels sub-group, which rose 3.3% compared with 2% previously. The rise was attributed to the updated Automatic Fuel Adjustment (AFA) rates imposed on domestic consumers in Peninsular Malaysia using more than 600 kilowatt-hours (kWh).
In Sarawak, all domestic consumers received a 25% electricity bill discount from April to December 2026 under a Sarawak government financial assistance initiative. The discount benefits about 714,000 households.
Nine states and federal territories recorded inflation above the national rate of 1.9% — Negeri Sembilan (2.5%), Johor (2.3%), Kedah (2.3%), Pahang (2.3%), Labuan (2.3%), Selangor (2.1%), Kuala Lumpur (2.1%), Melaka (2%) and Putrajaya (2%).
DOSM added that all states recorded higher Food & Beverages inflation in August 2026 except Kelantan, which recorded a decline.
