Malaysia July Inflation Rate Moderates to 1.8 Percent

The Department of Statistics Malaysia reported that the annual inflation rate moderated to 1.8 percent in July 2026, down from 1.9 percent in June. This figure fell slightly below the 1.9 percent forecast predicted by economists in a Reuters poll. The Consumer Price Index rose to 137.1 points from 134.7 a year earlier.

While the transport group drove the overall increase, its specific inflation rate slowed to 1.4 percent from 2.8 percent in June. Moderation was also observed in personal care, social protection, and restaurant services. In contrast, inflation rose within the housing, food, beverages, and information and communication groups.

Regional data showed that Negeri Sembilan recorded the highest inflation rate at 2.5 percent, exceeding the national average. On a month-on-month basis, headline inflation remained unchanged from June.