The Department of Statistics Malaysia (DOSM) publishes the consumer price index (CPI) every month. The latest figures cover September 2026 and were released on 19 October 2026.
Inflation in Malaysia at a glance
| Measure | August 2026 | September 2026 |
|---|---|---|
| Headline inflation | 1.9% | 1.8% |
| Core inflation | 1.7% | 1.7% |
| Housing and utilities | 2.1% | 1.4% |
- Inflation was 1.8% in September 2026, down from 1.9% in August.
- Core inflation, which leaves out fresh food and government-set prices, was 1.7%.
- Prices rose 1.8% on average from January to September 2026, against the same months of 2025.
- Bank Negara Malaysia (BNM) expects headline inflation of 1.5% to 2.5% in 2026.
- The median salary rose 5.3% in 2025, when inflation was 1.4%.
- October's figures are due on 19 November 2026.
What is the inflation rate in Malaysia now?
Prices in September 2026 were 1.8% higher than a year earlier. The index rose to 137.6 points from 135.2 in September 2025.
- Prices rose 0.1% from August to September, and inflation for the third quarter of 2026 was 1.9%.
- Housing and utilities slowed mainly because water supply and electricity costs rose more slowly. Electricity bill protection was widened from 1 September.
Our news report on DOSM's release is in Malaysia's inflation eases to 1.8% in September.
Inflation over the last 13 months
Inflation has stayed under 2% in every month but one since September 2025. It was highest at 2.0% in May 2026.
Core inflation was highest in these 13 months at 2.3%, in December 2025 and January 2026. It eased to 1.7% in August and September 2026.
Inflation each year since 2016
Annual inflation is the average index for the year against the year before. It was 1.4% in 2025, the lowest since 2020.
| Year | Inflation | Index (2010 = 100) |
|---|---|---|
| 2025 | 1.4% | 134.6 |
| 2024 | 1.8% | 132.8 |
| 2023 | 2.5% | 130.4 |
| 2022 | 3.3% | 127.2 |
| 2021 | 2.5% | 123.1 |
| 2020 | -1.2% | 120.1 |
| 2019 | 0.7% | 121.5 |
| 2018 | 1.0% | 120.7 |
| 2017 | 3.7% | 119.5 |
| 2016 | 2.1% | 115.2 |
- 2017 had the highest rate in these years, 3.7%.
- Prices fell 1.2% in 2020, during COVID-19. Transport prices fell 10.0% that year.
- Core inflation was 1.8% in 2024 and 2.0% in 2025, according to BNM.
Inflation by group
DOSM splits the basket into 13 main groups. Food and beverages, and housing and utilities, together make up more than half of the index.
| Group | Weight | August 2026 | September 2026 |
|---|---|---|---|
| Food and beverages | 29.8% | 1.9% | 1.8% |
| Housing, water, electricity, gas and other fuels | 23.2% | 2.1% | 1.4% |
| Transport | 11.3% | 2.0% | 2.5% |
| Information and communication | 6.6% | 2.6% | 1.8% |
| Personal care, social protection and other | 5.8% | 3.2% | 2.8% |
| Furnishings and household maintenance | 4.3% | 0.4% | 0.3% |
| Insurance and financial services | 4.0% | 1.0% | 1.2% |
| Restaurants and accommodation | 3.4% | 2.1% | 2.2% |
| Recreation, sport and culture | 3.0% | 1.1% | 1.2% |
| Clothing and footwear | 2.7% | 0.1% | 0.2% |
| Health | 2.7% | 1.3% | 1.4% |
| Alcoholic beverages and tobacco | 1.9% | 2.8% | 2.8% |
| Education | 1.3% | 1.9% | 2.1% |
Weight is the group's share of household spending in the index.
Food, utilities and fuel
DOSM's release gives these details for September 2026.
| Item | August 2026 | September 2026 |
|---|---|---|
| Food at home | 1.4% | 1.2% |
| Food away from home | 2.5% | 2.6% |
| Electricity, gas and fuel | 3.3% | 0.1% |
| RON97, average price a litre | RM4.28 | RM4.64 |
- Electricity slowed after bill protection in Peninsular Malaysia was raised from 600 kWh to 800 kWh a month.
- Households in Sarawak get a 25% electricity bill discount from April to December 2026.
- The subsidised price of RON95 is RM1.99. Diesel had a market price of RM5.05, against a subsidised RM2.10.
Inflation by state
Eight states were above the national rate of 1.8% in September 2026. Sarawak had the lowest rate, 0.5%.
- Perlis slowed the most, to 0.6% from 1.2% in August.
- Melaka fell to 1.5% from 2.0%.
- Sabah, Labuan and Putrajaya were the only states where inflation rose from August.
BNM's forecast for 2026
BNM expects headline inflation to average 1.5% to 2.5% in 2026, and core inflation 1.8% to 2.3%. It set these ranges in its Economic and Monetary Review 2025, released on 31 March 2026.
| Measure | BNM range for 2026 | January to September 2026 |
|---|---|---|
| Headline inflation | 1.5% to 2.5% | 1.8% |
| Core inflation | 1.8% to 2.3% | 2.0% |
- The average so far is inside both ranges. The core average is a Foundific calculation from the OpenDOSM core index.
- In its statement of 3 September 2026, BNM said headline and core inflation averaged 1.8% and 2% in the first seven months.
- It kept the Overnight Policy Rate (OPR) at 2.75% and gave no new range.
- In its Economic and Monetary Review 2025, BNM listed a further escalation of the Middle East conflict, raising commodity prices, among the upside risks.
Inflation and wages
The median salary has risen faster than prices in each year from 2021 to 2025, according to DOSM's Salaries & Wages Survey.
| Change | In 2025 | 2015 to 2025 | A year, 2015 to 2025 |
|---|---|---|---|
| Median monthly salary | 5.3% | 51.4% | 4.2% |
| Prices (annual CPI) | 1.4% | 19.3% | 1.8% |
- The median monthly salary was RM2,940 in 2025. After inflation, using DOSM's real salary table, it rose 3.9%.
- From 2020 DOSM's estimates are based on the 2020 Population and Housing Census, so the 2015 to 2025 comparison is approximate.
These rates are Foundific calculations from DOSM figures. The salary data covers Malaysian citizens in paid employment. See wage growth in Malaysia for pay by education and age.
What inflation means for your pay
At 1.8% inflation, RM4,000 a month in a year's time buys what RM3,929 buys today. To keep the same buying power you would need RM4,072, or RM72 more a month.
| Pay rise | New monthly pay | Real change after 1.8% inflation |
|---|---|---|
| None | RM4,000 | -1.8% |
| 2% | RM4,080 | 0.2% |
| 3% | RM4,120 | 1.2% |
| 5% | RM4,200 | 3.1% |
Foundific calculations: real change = (1 + pay rise) ÷ 1.018 − 1. The figures are before Employees Provident Fund (EPF) contributions and tax.
- A pay rise above the inflation rate raises your real pay.
- Your own costs can differ from the average. Eating out rose 2.6%, against 1.2% for food at home.
- The take-home pay calculator shows a pay rise after EPF, SOCSO, EIS and tax.
How DOSM measures inflation
The CPI tracks the cost of a fixed basket of goods and services bought by households.
- DOSM prices 573 items in retail outlets across Malaysia.
- Perishable food is priced weekly as well as monthly. Rents are collected every quarter.
- Prices include all taxes.
- The basket has 13 main groups, following the United Nations COICOP 2018 classification.
- The weights come from the Household Expenditure Survey 2022 and have been used since the January 2024 figures.
- The index reference year is 2010, so 2010 = 100.
- Headline inflation is the change in the whole index from the same month a year earlier.
- Core inflation leaves out fresh food and prices set by the government.
- The national index combines the state indices, weighted by each state's spending.
Release calendar
- The CPI for October 2026 is due on 19 November 2026.
- The CPI for November 2026 is due on 18 December 2026.
Questions
What is the inflation rate in Malaysia?
It was 1.8% in September 2026, according to DOSM's figures released on 19 October 2026. In August it was 1.9%.
What is core inflation in Malaysia?
Core inflation was 1.7% in September 2026. It leaves out fresh food and prices set by the government. In August it was also 1.7%.
What is BNM's inflation forecast for 2026?
BNM expects headline inflation of 1.5% to 2.5% and core inflation of 1.8% to 2.3% in 2026. It published the ranges on 31 March 2026.
Which state has the highest inflation?
Negeri Sembilan and Labuan, both at 2.4% in September 2026. Sarawak had the lowest rate, 0.5%.
When is the next inflation figure released?
DOSM's calendar lists the CPI for October 2026 on 19 November 2026.
Related guides
Sources
DOSM Consumer Price Index Malaysia September 2026, OpenDOSM CPI data, and Bank Negara Malaysia's Economic and Monetary Review 2025 and Monetary Policy Statement of 3 September 2026
- DOSM, Consumer Price Index Malaysia, September 2026 Released 19 October 2026. Media release, publication Table 8 (weights and core index by group), Chart 3 (states), technical notes and the 2026 release calendar.
- OpenDOSM data catalogue: cpi_2d, cpi_2d_inflation, cpi_2d_annual_inflation, cpi_2d_core, cpi_2d_core_inflation, cpi_2d_state_inflation Monthly and annual CPI by main group and state, and the core index. Downloaded 24 October 2026.
- Bank Negara Malaysia, Economic and Monetary Review 2025 Released 31 March 2026. Forecast of headline and core inflation for 2026; core inflation for 2024 and 2025.
- Bank Negara Malaysia, Monetary Policy Statement, 3 September 2026 Latest statement. Headline and core inflation for January to July 2026; OPR kept at 2.75%.
- DOSM, Salaries & Wages Survey Report 2025 Median monthly salary and real median salary (table D2), Malaysian citizens.
