Kuala lumpur: Malaysia's inflation is anticipated to rise to 1.8 per cent in 2026, which is near the upper threshold of the official 1.3-2.0 per cent range, as reported by RHB Investment Bank Bhd (RHB IB).

According to BERNAMA News Agency, the RHB IB research note attributes this projected increase to a positive outlook on domestic demand, driven by steady investment, resilient consumption, and expansionary fiscal measures. Despite the projected rise, inflation is expected to remain below the long-term average of 2.0 per cent, aided by effective policy implementation and the lack of excessive demand pressures.

The investment bank also highlighted that declining global commodity prices are expected to help maintain moderate domestic costs. It anticipates that the overall impact of announced and upcoming policy reforms on inflation will be minimal, allowing for a stable monetary policy stance in the forthcoming year.

For 2025, RHB IB projects that inflation will likely average 1.4 per cent, aligning with the lower end of the revised official projected range of 1.0-2.0 per cent.