Kuala lumpur: Malaysia's inflation increased by 1.9 percent in August 2026, up from 1.8 percent in the previous month, with the Consumer Price Index rising to 137.5 points in July from 134.9 a year earlier. According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) reported that the transport group was a significant driver of the increase, rising 2.0 percent compared to 1.4 percent in July 2026. Inflation in personal care, social protection, and miscellaneous goods and services rose by 3.2 percent in August compared to 2.9 percent in July.

DOSM indicated that both housing, water, electricity, gas, and other fuels, along with restaurant and accommodation services, increased by 2.1 percent in August compared to 1.8 percent and 2.0 percent in the previous month, respectively. The food and beverages group saw an increase of 1.9 percent in August, rising from 1.8 percent in July 2026, while the health group rose by 1.3 percent compared to 1.1 percent previously.

Additionally, the furnishings, household equipment, and routine household maintenance recorded a slight increase of 0.4 percent in August, up from 0.3 percent in July 2026. DOSM noted that nine states experienced inflation increases above the national level of 1.9 percent. These states included Negeri Sembilan at 2.5 percent, Johor, Kedah, Pahang, and Labuan each at 2.3 percent, followed by Selangor and Kuala Lumpur at 2.1 percent, with Melaka and Putrajaya each at 2.0 percent. All states registered an increase in food and beverages inflation, except for Kelantan, which saw a decrease in August 2026.

On a month-on-month basis, the headline inflation in August 2026 increased marginally by 0.3 percent, driven by transport inflation that registered 0.6 percent compared to -1.1 percent in the previous month. The personal care, social protection, and miscellaneous goods and services sectors increased by 0.5 percent as well. Both housing, water, electricity, gas, and other fuels, along with restaurant and accommodation services, saw an increase of 0.4 percent compared to 0.1 percent and 0.2 percent in the previous month, respectively. The food and beverages group moderated to 0.2 percent in August, down from 0.3 percent in July.