KUALA LUMPUR: The cost of consumer goods in Malaysia rose 1.8% in September 2026, slightly lower than 1.9% registered in the previous month, according to the Department of Statistics.
For the cumulative third quarter of 2026, the rate of inflation was 1.9%, the same as recorded in the previous quarter.
The increase in the consumer price index (CPI) for September was slightly lower than analysts expected, with a Reuters poll forecasting a 1.9% increase. UOB Global Economics & Market Research had projected a 2% year-on-year increase.
According to the statistics agency, the lower CPI growth was owing to a moderation in the increase in the cost of utilities (housing, water, electricity, gas and other fuels), which eased to 1.4% as compared to 2.1 % in August.
"The slower pace in inflation for the electricity, gas and fuel subgroup was driven by the revision of the Automatic Fuel Adjustment (AFA) rate imposed on domestic users in Peninsular Malaysia for consumption of more than 800 kilowatt hours (kWh)," said the agency.
The government has expanded electricity bill protection for domestic users from 600kWh to 800kWh per month, effective for electricity consumption from Sept 1 to Dec 31, 2026.
There was also moderation in personal care, social protection and miscellaneous goods and services to 2.8% in September, as compared to 3.2% in August. Information and communication and food and beverages groups eased to 1.8% as compared to 2.6% and 1.9% in the previous month, respectively.
The cost of transport, however, increased 2.5% in September as compared to 2% previously. The health group recorded a 1.4% increase as compared to 1.3% in August.
