Malaysia's inflation eased to 1.8% in September 2026 from 1.9% in August, the Department of Statistics Malaysia (DOSM) said on 19 October. The consumer price index rose to 137.6 points, from 135.2 in September 2025.
1.8%InflationSeptember 2026, from 1.9% in August
1.9%Inflation, Q3 2026Year on year
0.1%Month on monthSeptember, from 0.3% in August
Source: DOSM, Consumer Price Index Malaysia September 2026, released 19 October 2026.
In short
- Housing and utilities slowed the most, after electricity bill protection was widened.
- Transport prices rose faster as fuel prices went up.
- Prices rose 0.1% from August, and 1.9% in the third quarter.
What this means for you
If you are an employee
- A raise above 1.8% grows your real pay; one below it shrinks it. The table below shows what 3% and 5% are worth.
- Eating out rose 2.6%, faster than food at home at 1.2%.
- Fuel at the pump rose for RON97 and market-priced diesel; subsidised RON95 and diesel prices are unchanged.
If you are an employer
- Pay rises below 1.8% leave staff worse off in real terms.
- Utilities slowed sharply in Peninsular Malaysia after bill protection widened, which lowers costs for many households until 31 December 2026.
- For benchmarks, the median salary rose 5.3% in 2025 (DOSM).
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Utilities slowed to 1.4% while transport rose to 2.5%
Main groups
| 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% |
| Restaurants and accommodation | 2.1% | 2.2% | |
| Education | 1.9% | 2.1% |
Weight is the group's share of the index.
Why utilities slowed
Electricity, gas and fuel inflation fell to 0.1% from 3.3% in August.
DOSM linked this to wider electricity bill protection in Peninsular Malaysia, raised from 600 kWh to 800 kWh a month from 1 September to 31 December 2026. Households in Sarawak also get a 25% bill discount.
Fuel, food and states
- RON97: RM4.64 a litre, up from RM4.28. Diesel: a market price of RM5.05, against a subsidised RM2.10.
- Food: at home 1.2%, down from 1.4%; away from home 2.6%, up from 2.5%.
- States: eight were above 1.8%, led by Negeri Sembilan and WP Labuan at 2.4%.
Your numbers
| Monthly pay | Raise | Extra a month | Real rise after 1.8% inflation |
|---|---|---|---|
| RM3,000 | 3% | RM90 | 1.2% |
| RM3,000 | 5% | RM150 | 3.1% |
| RM5,000 | 3% | RM150 | 1.2% |
| RM5,000 | 5% | RM250 | 3.1% |
Foundific calculations: real rise = (1 + raise) ÷ 1.018 − 1, before EPF and tax.
What to do next
- Pay review: the median salary rose 5.3% in 2025, or 3.9% after inflation; see wage growth in Malaysia.
- Ask for a rise: the salary increment letter.
- After deductions: the take-home pay calculator shows a raise after EPF, SOCSO, EIS and tax.
- Next release: DOSM publishes October's index on 19 November 2026.
Related guides
Sources
DOSM, Consumer Price Index Malaysia, September 2026
- DOSM, Consumer Price Index, September 2026 Released 19 October 2026. Media release copy kept in data/my/dosm/cpi/raw.
