Malaysia’s inflation rate edged up to 2.0 percent in May 2026, reflecting higher prices across several essential sectors, according to the Statistics Department Malaysia (DOSM).
The Consumer Price Index (CPI) increased to 137.1 points in May 2026 compared with 134.4 points recorded during the same period last year. The latest figures indicate that while inflation remains manageable, Malaysians continue to face rising costs in everyday expenses.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that four major categories contributed significantly to the increase in inflation during May.
The information and communication sector recorded an inflation rate of 2.1 percent, slightly higher than the 2.0 percent registered in April. Meanwhile, food and beverages, which account for nearly 30 percent of the total CPI weightage, rose by 1.4 percent compared with 1.2 percent in the previous month.
Housing, water, electricity, gas and other fuels also experienced a moderate increase of 1.2 percent, up from 1.1 percent in April. Recreation, sport and culture inflation climbed to 1.1 percent from 0.9 percent, driven mainly by higher maintenance, repair and security costs associated with residential properties.
DOSM further noted that changes to the Automatic Fuel Adjustment (AFA) mechanism affected electricity tariffs in Peninsular Malaysia. The Energy Commission imposed an AFA surcharge rate of 1.38 sen per kilowatt hour for May 2026, replacing the 0.47 sen rebate implemented in April.
The department clarified that this tariff adjustment primarily impacted domestic consumers using more than 600 kilowatt hours of electricity per month, while households consuming 600 kilowatt hours or less remained unaffected.
Several sectors, however, showed signs of easing inflationary pressure. Transportation inflation moderated to 3.8 percent compared with 4.1 percent previously. Restaurant and accommodation services recorded inflation of 2.5 percent, slightly lower than April’s 2.6 percent.
Education inflation slowed to 2.2 percent from 2.4 percent, while healthcare inflation eased to 1.2 percent compared with 1.4 percent in the previous month.
According to DOSM, price increases were recorded in 364 out of 573 monitored items, representing 63.5 percent of all goods and services tracked. Among these, 355 items saw price increases of 10 percent or less, while only nine items experienced price hikes exceeding 10 percent.
Meanwhile, 167 items registered price declines, and 42 items remained unchanged.
Fuel prices also reflected some relief for consumers. The average price of RON97 petrol declined to RM4.81 per litre in May from RM5.06 in April. Diesel prices in Peninsular Malaysia decreased to an average of RM5.01 per litre from RM5.92. In Sabah, Sarawak and Labuan, diesel prices remained stable at RM2.15 per litre.
The average market price of RON95 petrol also slipped slightly to RM3.97 per litre from RM4.00, while the subsidised retail price continued to remain fixed at RM1.99 per litre.
At the state level, several regions recorded inflation rates exceeding the national average of 2.0 percent. Pahang registered the highest inflation at 2.8 percent, followed by Negeri Sembilan and Labuan at 2.6 percent each. Johor recorded 2.5 percent, Kuala Lumpur 2.4 percent, Kedah and Putrajaya both 2.2 percent, and Melaka 2.1 percent.
The remaining states recorded inflation rates at or below the national average, with Sarawak posting the country’s lowest inflation rate at just 0.5 percent.
The latest inflation figures highlight the delicate balance facing Malaysian households and businesses. Although fuel prices and certain service sectors have shown signs of moderation, rising costs in food, housing and communication continue to place pressure on everyday living expenses. As Malaysia moves through 2026, managing inflation while protecting consumer purchasing power will remain a key economic priority for both policymakers and businesses.
