Malaysian inflation increased by 1.6% year-on-year in January 2026, with the consumer price index rising to 135.7 compared to 133.6 in the same month last year, according to the Department of Statistics Malaysia.
The increase was mainly driven by the personal care, social protection and miscellaneous goods and services groups which increased by 6.6%, higher than 5.7% in December.
Education also recorded an increase of 3.2%, followed by housing, water, electricity, gas and other fuels by 1.2%, and recreation, sports and culture by 0.9%.
Alcoholic beverages and tobacco rose by 2.5%, while food and beverages increased by 1.5%, the same as the previous month.
Of the 573 items monitored, around 62% recorded price increases, with the majority increasing by less than 10%. Only nine items increased by more than 10%, while 30% of items recorded price decreases.
In terms of fuel prices, the average RON97 fell to RM3.11 per litre compared to RM3.24 in December.
Diesel in Peninsular Malaysia fell to RM2.89 per litre, while in Sabah, Sarawak and Labuan it remained at RM2.15 per litre. The market price of RON95 is at RM2.54 per litre, compared to the subsidised price of RM1.99.
Three states recorded inflation above the national level of 1.6%, namely Johor (2.1%), Negeri Sembilan (2.0%) and Pahang (1.9%). Kelantan recorded the lowest inflation at 0.3%. For food and beverage inflation, almost all states recorded an increase except Kelantan which recorded -0.3%, with Negeri Sembilan recording the highest increase of 3.2%.
Month-on-month, January inflation increased by 0.1%, slower than 0.3% in December, indicating that overall price pressures are still under control so far.
