Malaysia's inflation rises 2.0% in May; Pahang records highest rate

KUALA LUMPUR: Malaysia's inflation rose 2.0% year-on-year (y-o-y) in May 2026, slightly higher than the previous month, driven mainly by increases in information and communication, food and beverages, and housing-related costs. The Department of Statistics Malaysia (DOSM), in a statement, said the consumer price index (CPI) increased to 137.1 in May from 134.4 a year earlier. DOSM said four consumer groups registered higher inflation in May, led by information and communication, which rose 2.1% compared with 2.0% in April. Food and beverages inflation also edged up to 1.4% from 1.2%, while housing, water, electricity, gas and other fuels increased 1.2% from 1.1%, and recreation, sport and culture rose 1.1% from 0.9%. Meanwhile, inflation moderated in several categories, including transport, which slowed to 3.8% from 4.1% in April. Restaurant and accommodation services eased to 2.5% from 2.6%, education to 2.2% from 2.4%, and health to 1.2% from 1.4%. Insurance and financial services remained unchanged at 4.9%, while personal care, social protection and miscellaneous goods and services held steady at 4.8%. Inflation for alcoholic beverages and tobacco remained at 2.8%, while furnishings, household equipment and routine household maintenance stayed at 0.4%. The clothing and footwear category declined to negative 0.1% y-o-y. Eight recorded inflation rates above the national average of 2.0%. Pahang registered the highest inflation at 2.8%, followed by Negeri Sembilan and Labuan at 2.6% each, Johor at 2.5%, Kuala Lumpur at 2.4%, and Kedah, Putrajaya and Melaka at between 2.1% and 2.2%. DOSM said Sarawak recorded the lowest inflation rate at 0.5%. On a month-on-month basis, headline inflation increased 0.1% in May, slowing from the 0.4% rise recorded in April. Housing, water, electricity, gas and other fuels rose 0.5% during the month, while food and beverages and restaurant and accommodation services each increased 0.3%. Transport prices fell 0.5% month-on-month, reversing a 2.5% increase in April, while health and personal care-related categories declined 0.1%. Compared with selected countries, Malaysia's inflation rate of 2.0% was lower than the Philippines (6.8%), Vietnam (5.6%), South Korea (3.1%), Indonesia (3.1%) and Thailand (2.8%), but higher than China's 1.2%.