CPI eases to 1.8 per cent amid moderating transport inflations
KUALA LUMPUR: Malaysia's headline inflation eased to 1.8 per cent in July 2026 from 1.9 per cent in June, as slower growth in transport costs helped moderate overall price increases, according to the Statistics Department.
Malaysia's headline inflation slowed to 1.8% in July 2026 from 1.9% in June, according to the Statistics Department. This decrease was primarily due to a moderation in transport costs, which reduced the overall price increases. The Consumer Price Index (CPI) increased to 137.1 points in July compared to 134.7 points a year earlier.
The transport group saw a significant drop in inflation, falling to 1.4% from 2.8% in June, mainly due to a slower rise in personal transport equipment costs and lower fuel prices. The average price of RON97 petrol dropped from RM4.33 to RM4.07 per litre, while diesel decreased from RM4.50 to RM4.14 per litre. Other categories that experienced slower inflation included personal care, social protection, and miscellaneous goods and services.
However, certain major categories saw accelerated inflation, such as food and beverages, which rose 1.8% in July, and housing, which increased by 1.8%. Inflation for food at home also accelerated to 1.2% from 0.5% in the previous month. Chicken prices saw a sharp rise, with the average national price reaching RM10.88 per kilogramme, up from RM10.25 a year ago.
This price surge contributed to the inflation in the food away from home category, which increased to 2.5% from 2.4% in June. Among food items, the meat category saw a 3.2% increase due to high chicken prices. Seven states recorded inflation rates above the national average, with Negeri Sembilan leading at 2.5%. On a month-on-month basis, headline inflation remained unchanged at 1.8%.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
