Malaysia’s headline inflation rate rose to 1.6 per cent in January 2026 compared with the same month last year, according to official data from the Department of Statistics Malaysia (DOSM). This moderate increase was largely supported by higher costs in personal care and education-related categories.
The Consumer Price Index (CPI) — the broad measure of the country’s inflation — climbed to 135.7 points in January from 133.6 a year ago. On a month-to-month basis, inflation edged up by 0.1 per cent, slowing from the 0.3 per cent gain recorded in December 2025.
🔍 Key Drivers of Inflation
DOSM’s detailed breakdown highlights four main categories that contributed to inflation in January:
- Personal Care, Social Protection & Miscellaneous Goods & Services — prices in this segment rose 6.6 % year-on-year, marking the largest contribution to overall inflation.
- Education — costs increased by 3.2 %, reflecting higher fees and related academic expenses.
- Housing, Water, Electricity, Gas & Other Fuels — this category went up 1.2 %, partly due to rising utility costs.
- Recreation, Sport & Culture — prices grew by 0.9 % compared with last year.
Despite the upward price pressures, some areas helped to ease the impact: the transport category saw a 0.7 % decline, and several services — including insurance, accommodation, and communication — saw slower price growth.
📍 Regional Variations
Inflation was not uniform across Malaysia’s states:
- Johor recorded the highest annual inflation at 2.1 %.
- Negeri Sembilan and Pahang followed with 2.0 % and 1.9 % respectively.
- Kelantan saw the lowest inflation rate, at only 0.3 %.
Food & beverages prices rose 1.5 % nationally, with most states posting increases except Kelantan, where the category slightly declined.
🛢 Fuel Price Trends & Household Impact
Despite rising costs in several consumer segments, fuel prices moderated in January:
- RON97 petrol averaged RM3.11 per litre, down from RM3.24 in December 2025.
- Diesel in Peninsular Malaysia averaged RM2.89 per litre, lower than the previous month.
These softer fuel costs helped temper broader inflation pressures for consumers, especially transport-related expenses.
📊 What This Means for Malaysians
Malaysia’s 1.6 % inflation rate remains moderate by regional standards, lower than Indonesia (3.6 %) and Vietnam (2.5 %), though still above Thailand’s negative inflation in January 2026.
Economists interpret this as a sign that although certain everyday costs — such as personal care and education — are rising, overall price increases are contained and not showing runaway inflation. That said, continued monitoring is necessary as seasonal factors and global supply pressures could influence future trends.
In summary:
Malaysia’s inflation held at a manageable 1.6 per cent in January 2026, supported by price rises in personal care and education. While some areas of the economy are feeling upward price pressures, overall inflation remains moderate and comparatively stable.