Malaysia’s inflation rate remained steady at 1.6% in January 2026, according to the Department of Statistics Malaysia.

The figure matches December 2025’s rate, suggesting overall price growth has stabilised at the start of the year. On a month on month basis, the Consumer Price Index rose 0.1%, indicating that prices are still edging higher, though gradually.

For households, this means cost pressures remain moderate overall, but certain everyday expenses are rising faster than others.

Consumer Price Index Shows Modest Annual Increase

The Consumer Price Index, which tracks changes in the prices of goods and services, increased to 135.7 points in January 2026, up from 133.6 points a year earlier.

While the headline figure is unchanged, the impact on households depends on where spending is concentrated. Categories such as education and personal care are rising more quickly than the national average.

Education And Personal Care Lead Price Increases

Personal care, social protection, and miscellaneous goods and services recorded a 6.6% increase in January, up from 5.7% in December. This category includes items such as grooming services and selected related expenses.

Education costs rose 3.2%, compared with 2.8% previously. For families with school going children or students paying tuition fees, this may result in higher regular outlays at the start of the academic year.

Housing, water, electricity, gas, and other fuels increased 1.2%, while recreation, sport, and culture rose 0.9%. These categories can influence both fixed and discretionary spending each month.

Food Prices Remain Stable Overall

Food and beverages, which account for 29.8% of the overall CPI basket, rose 1.5% in January, unchanged from December.

Dining out increased 2.5%, while food prepared at home rose 0.6%. Higher prices for meat, milk, other dairy products, and eggs contributed to the increase.

This suggests grocery bills remain relatively stable overall, although specific items may cost more than a year ago.

Transport Costs Ease Further

Transport prices declined 0.7% in January, reversing the 0.1% increase recorded in December.

Lower transport costs may help offset rising expenses in other areas, particularly for working adults who commute regularly or operate private vehicles.

Most Other Categories See Moderate Changes

Insurance and financial services rose 5.5%, while restaurant and accommodation services increased 3.0%.

Health costs went up 1.4%, information and communication rose 0.7%, and furnishings, household equipment, and routine household maintenance edged up 0.2%.

While these increases are not sharp, they can gradually add to monthly expenses, especially for households with ongoing service commitments.

Johor, Negeri Sembilan, And Pahang Above National Average

At the state level, Johor recorded inflation of 2.1%, followed by Negeri Sembilan at 2.0% and Pahang at 1.9%. These were the only three states above the national average of 1.6%.

Kelantan posted the lowest rate at 0.3%, while the remaining states recorded increases at or below the national figure.

This means cost of living pressures may vary slightly depending on where households are located.

Inflation Remains Moderate At The Start Of 2026

Compared with several regional economies, Malaysia’s inflation rate remains relatively contained.

Overall, price growth is steady rather than accelerating. However, households may notice stronger increases in recurring service related expenses, particularly education and personal care, even as food and transport costs remain more stable.

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