DOSM: Inflation eases to 1.8% in July as transport costs moderate

Malaysia's inflation rate slowed to 1.8% in July 2026 from 1.9% in June, according to the Department of Statistics Malaysia. This decline was primarily attributed to moderating prices in the Transport sector, which rose 1.4% in July compared to 2.8% in June. Personal Care, Social Protection, and Miscellaneous Goods and Services also experienced slower growth, at 2.9% down from 3.4% previously.

Price increases were seen in several categories, including Information and Communication (up 3.4% from 2.4% in June), Food and Beverages (1.8% from 1.4%), and Recreation, Sport, and Culture (1.2% from 1.1%). However, several groups recorded slower growth as well, such as Education (2.0% from 2.1% in June) and Insurance and Financial Services (1.1% from 5.7% in June). Household Furnishings, Equipment, and Maintenance also saw minimal growth (0.3% from 0.4% previously).

Out of the seven states, Negeri Sembilan had the highest inflation rate at 2.5%, followed by Kedah and Pahang at 2.3% each. Kuala Lumpur recorded an inflation of 2.2%, while Johor and Sabah followed with 2.1% and 1.9% respectively. Only Kelantan and Labuan did not see an increase in food prices.