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In September, Malaysia's inflation rate decreased to 1.8 percent from 1.9 percent in August, with key drivers being reduced housing-related costs, food and beverage prices, personal care, and communication services. The consumer price index (CPI) increased to 137.6 points from 135.2 points a year ago. In the housing sector, inflation slowed to 1.4 percent from 2.1 percent in August, primarily due to slower inflation in electricity, gas, and other fuels.

Water supply and dwelling-related services also saw a decrease in inflation from 5.1 percent to 1.3 percent. Electricity costs lowered after changes to the Automatic Fuel Adjustment rate for domestic users consuming over 800 kilowatt-hours monthly. The government expanded electricity bill protection for domestic users from 600 to 800 kWh monthly, easing cost-of-living pressures.

Sarawak's households experienced a 25 percent discount on electricity bills from April to December 2026. Food and beverage inflation moderated to 1.8 percent from 1.9 percent in August, with home-cooked food prices dropping 1.2 percent from 1.4 percent, while food consumed away from home saw a slight increase of 2.6 percent. Personal care, social protection, and miscellaneous goods and services inflation reduced to 2.8 percent from 3.2 percent.

Despite the overall moderation, transport inflation rose to 2.5 percent from 2.0 percent due to higher costs associated with operating personal vehicles. Inland transport equipment inflation increased to 2.7 percent from 1.8 percent, while public transport services saw a decrease to 7.8 percent from 10.5 percent. Vehicle and transport services of goods inflation declined by 0.6 percent and 0.5 percent, respectively.

Subsidised fuel prices rose, with RON97 petrol up to RM4.64 per litre from RM4.28, and diesel increasing to RM5.05 from RM4.60. On a month-to-month basis, inflation rose by 0.1 percent in September compared to 0.3 percent in August. For the third quarter of 2026, inflation remained steady at 1.9 percent, unchanged from the previous quarter.

Certain categories experienced higher inflation, including information and communication at 2.6 percent, food and beverages at 1.8 percent, and housing-related costs at 1.8 percent. Recreation, sport, and culture saw a 1.2 percent increase, while clothing and footwear rose by 0.1 percent. Other categories saw slower price increases, such as personal care, social protection, and miscellaneous goods and services at 3.0 percent, restaurant and accommodation services at 2.1 percent, and transport and education at 2.0 percent each. Insurance and financial services inflation stood at 1.1 percent.