Malaysia’s headline inflation rose to 1.9% in August 2026, up from 1.8% in July, the Department of Statistics Malaysia said. 

Meat inflation rose to 3.5%, driven by chicken, which climbed to 8.0% year-on-year. Standard chicken now averages RM10.88 per kilogramme nationally, up from RM10.17 a year ago. Vegetable prices jumped to 2.8% from just 1.0% in July, led by tomatoes, up 38.2% year-on-year.

A Few Items Drove The Rise 

Core inflation, which excludes volatile fresh food and government-controlled prices, eased to 1.7% in August from 1.8% in July. This suggests that the increase in headline inflation was concentrated in certain categories, rather than being spread across the wider basket of goods and services.

Still, prices have been rising at a faster pace this year. Cumulative inflation from January to August 2026 was 1.8%, compared with 1.4% over the same period in 2025.

Fuel Costs Twice As Much Without The Subsidy 

RON95 averaged RM3.75 a litre on the open market in August, compared with the subsidised BUDI95 price of RM1.99. Diesel averaged RM4.60 a litre, compared with RM2.10 under BUDI Diesel.

Motorists receiving the fuel subsidies continue paying the subsidised prices at the pump. But fuel prices can still affect other household expenses, since businesses often pass transport and delivery costs on to consumers.

Public transport was another area where prices increased in August. Services inflation rose to 10.5%, from 6.5% in July. For commuters, this could mean higher costs for affected public transport services.

Where You Live Affects Your Costs

Negeri Sembilan recorded the highest inflation rate in August, at 2.5%, followed by Johor, Kedah, Pahang and Labuan at 2.3% each, all above the national 1.9% average. Sarawak recorded the lowest rate by far, at just 0.5%. Urban areas, like Kuala Lumpur and Selangor, also saw faster price growth than rural areas, at 2.0% versus 1.7%. 

Salaries also vary widely by state, so the same price increase can hit harder in some places than others.

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Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

About THE AUTHOR

Iman Aminuddin

Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

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