Kuala lumpur: Malaysia's inflation increased 1.6 per cent in January 2026 with the index points rising to 135.7 from 133.6 in the same month last year, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, chief statistician Datuk Seri Dr Mohd Uzir Mahidin stated that this increase was driven by four groups, led by personal care, social protection, and miscellaneous goods and services, which rose 6.6 per cent compared to 5.7 per cent in December 2025. The education sector followed with a climb of 3.2 per cent, up from 2.8 per cent in December 2025. Housing, water, electricity, gas, and other fuels recorded a 1.2 per cent increase, while recreation, sport, and culture grew by 0.9 per cent.

The alcoholic beverages and tobacco group and the food and beverages group both increased by 2.5 per cent and 1.5 per cent respectively, maintaining the same rate as in December 2025. DOSM reported that approximately 62 per cent of items saw price increases, with 346 items rising by 10 per cent or less, and only nine items experiencing increases of more than 10 per cent. Meanwhile, 173 items recorded price declines, and 45 items remained unchanged.

The agency highlighted that the average price of unleaded petrol RON97 in January 2026 was RM3.11 per litre, a decrease from RM3.24 per litre in December 2025. Diesel prices in Peninsular Malaysia averaged RM2.89 per litre, down from RM3.03 per litre in December 2025, while prices in Sabah, Sarawak, and Labuan remained at RM2.15 per litre. The market price of RON95 increased to RM2.54 per litre compared to the subsidized price of RM1.99 per litre.

Three states-Johor, Negeri Sembilan, and Pahang-recorded inflation rates above the national level of 1.6 per cent, with Johor at 2.1 per cent, Negeri Sembilan at 2.0 per cent, and Pahang at 1.9 per cent. Kelantan recorded the lowest inflation at 0.3 per cent. Mohd Uzir noted that all states saw higher inflation rates for food and beverages except Kelantan, which recorded a decline of 0.3 per cent.

Month-on-month, January 2026's headline inflation increased by 0.1 per cent, compared to 0.3 per cent in December 2025. Groups that recorded increases compared to the previous month included personal care, social protection, and miscellaneous goods and services, education, housing, water, electricity, gas, and other fuels, restaurant and accommodation services, and recreation, sport, and culture. Meanwhile, transport, furnishings, household equipment, routine household maintenance, and information and communication registered decreases.

Comparatively, Malaysia's 1.6 per cent inflation rate in January 2026 was lower than Indonesia's 3.6 per cent, Vietnam's 2.5 per cent, and South Korea's 2.0 per cent, but higher than Thailand's negative 0.7 per cent inflation rate.