KUALA LUMPUR – Malaysia’s inflation rate climbed 1.6% in January 2026, with the Consumer Price Index (CPI) rising to 135.7 points compared to 133.6 a year earlier, according to the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase was driven by four major groups, led by personal care, social protection and miscellaneous goods and services, which surged 6.6% compared to 5.7% in December 2025. Education costs also rose 3.2%, while housing, utilities and fuels increased 1.2%, and recreation, sport and culture edged up 0.9%.
Food and beverages, along with alcoholic beverages and tobacco, maintained steady growth at 1.5% and 2.5% respectively.
Price movements across items
According to DOSM, about 62% of items (355 out of 573) recorded price increases in January. Of these, 346 items (97.5%) rose by 10% or less, while only nine items saw increases above 10%. Meanwhile, 173 items (30.2%) recorded declines, and 45 items remained unchanged.
Fuel prices showed mixed movements. The average price of RON97 petrol fell to RM3.11 per litre from RM3.24 in December, while diesel in Peninsular Malaysia dropped to RM2.89 per litre compared to RM3.03 previously. In Sabah, Sarawak and Labuan, diesel prices remained unchanged at RM2.15 per litre. However, the average market price of RON95 petrol increased to RM2.54 per litre, compared to RM2.62 in December, against the subsidised price of RM1.99 per litre.
State-level inflation trends
Three states recorded inflation above the national average of 1.6 per cent: Johor (2.1%), Negeri Sembilan (2.0%) and Pahang (1.9%). Kelantan registered the lowest inflation at just 0.3%.
Food and beverages inflation was higher across most states, except Kelantan (-0.3%). Negeri Sembilan posted the sharpest increase at 3.2%, followed by Pahang (2.6%), Johor (2.5%), Kuala Lumpur (2.0%) and Melaka (1.7%).
Month-on-month performance
On a month-to-month basis, headline inflation in January rose 0.1%, slower than the 0.3% increase in December. Categories that recorded increases included personal care (1.0%), education (0.7%), housing and utilities (0.3%), restaurants and accommodation (0.3%), and recreation (0.2%).
Transport (-0.4%), household furnishings (-0.1%) and information and communication (-0.1%) registered declines.
Regional comparison
Malaysia’s 1.6% inflation rate in January was lower than Indonesia (3.6%), Vietnam (2.5%) and South Korea (2.0%), but higher than Thailand, which recorded deflation at -0.7%.
While Malaysia’s inflation remains moderate compared to regional peers, the sharper increases in personal care and education costs highlight growing pressure on households. Economists note that the overall rate is still within manageable levels, but policymakers will be closely monitoring essential categories to ensure inflation does not accelerate further. – February 19, 2026