Malaysia's inflation rises 2.0% in May; Pahang records highest rate


File pic — CHAN TAK KONG/The Star

KUALA LUMPUR: Malaysia's inflation rose 2.0% year-on-year (y-o-y) in May 2026, slightly higher than the previous month, driven mainly by increases in information and communication, food and beverages, and housing-related costs.

The Department of Statistics Malaysia (DOSM), in a statement, said the consumer price index (CPI) increased to 137.1 in May from 134.4 a year earlier.

DOSM said four consumer groups registered higher inflation in May, led by information and communication, which rose 2.1% compared with 2.0% in April.

Food and beverages inflation also edged up to 1.4% from 1.2%, while housing, water, electricity, gas and other fuels increased 1.2% from 1.1%, and recreation, sport and culture rose 1.1% from 0.9%.

Meanwhile, inflation moderated in several categories, including transport, which slowed to 3.8% from 4.1% in April. Restaurant and accommodation services eased to 2.5% from 2.6%, education to 2.2% from 2.4%, and health to 1.2% from 1.4%.

Insurance and financial services remained unchanged at 4.9%, while personal care, social protection and miscellaneous goods and services held steady at 4.8%.

Inflation for alcoholic beverages and tobacco remained at 2.8%, while furnishings, household equipment and routine household maintenance stayed at 0.4%.

The clothing and footwear category declined to negative 0.1% y-o-y.

Eight recorded inflation rates above the national average of 2.0%. Pahang registered the highest inflation at 2.8%, followed by Negeri Sembilan and Labuan at 2.6% each, Johor at 2.5%, Kuala Lumpur at 2.4%, and Kedah, Putrajaya and Melaka at between 2.1% and 2.2%.

DOSM said Sarawak recorded the lowest inflation rate at 0.5%.

On a month-on-month basis, headline inflation increased 0.1% in May, slowing from the 0.4% rise recorded in April.

Housing, water, electricity, gas and other fuels rose 0.5% during the month, while food and beverages and restaurant and accommodation services each increased 0.3%.

Transport prices fell 0.5% month-on-month, reversing a 2.5% increase in April, while health and personal care-related categories declined 0.1%.

Compared with selected countries, Malaysia's inflation rate of 2.0% was lower than the Philippines (6.8%), Vietnam (5.6%), South Korea (3.1%), Indonesia (3.1%) and Thailand (2.8%), but higher than China's 1.2%.

CLICK TO ENLARGE
CLICK TO ENLARGE

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Asian stocks near record, oil set for weekly loss
Gold heads for third weekly loss on firm dollar, hawkish Fed signals
CPO prices expected at RM4,400 to RM4,650 in July
Heavyweight selling drags FBM KLCI lower at midday
Malaysia's trade grows at fastest pace in 44 months, exports hit record RM184bil
CIMB launches first-car financing programme for young buyers
Moody’s lifts Malaysia’s outlook to A3 stable on AI-related growth
Malaysia's competitiveness ranking surge signals stronger economic fundamentals
Indonesia stocks choppy after MSCI review, emerging markets verdict awaited
Yen nears weakest in 40 years as BOJ hike fails to stem rout

Others Also Read