Malaysia’s inflation rate eased to 1.9% in June 2026, down from 2.0% in May, according to the latest Consumer Price Index (CPI) report from the Department of Statistics Malaysia (DOSM). The slowdown came mainly from transport costs, which rose 2.8% compared to 3.8% the month before, as pump prices fell for a second consecutive month.

Food and beverage prices, which carry the biggest weight in the CPI at 29.8%, rose 1.4% for the second month running. Core inflation, which strips out fresh food and government-controlled prices, also eased to 1.9% from 2.0% in May. On a month-to-month basis, overall prices were unchanged from May.

Fuel Prices Fall For A Second Month 

RON97 averaged RM4.33 per litre in June, down from RM4.81 in May and RM5.06 in April. Unsubsidised RON95 fell to RM3.69, and Peninsular Malaysia diesel to RM4.50, tracking crude oil prices. These prices remain far above their levels a year ago. Unsubsidised RON95 is 80% higher than in June 2025, and diesel is up 67.9%, although the RON95 comparison is against last June’s single subsidised price of RM2.05, before BUDI95 split the market into two tiers. The subsidised BUDI95 price, which applies to most drivers, stayed at RM1.99 per litre.

Fuel	June 2026	June 2025
RON95 (BUDI95, subsidised)	RM1.99/litre	RM2.05/litre*
RON95 (unsubsidised)	RM3.69/litre	RM2.05/litre
RON97	RM4.33/litre	RM3.11/litre
Diesel (Peninsular Malaysia)	RM4.50/litre	RM2.78/litre

*BUDI95 was introduced in October 2025; the June 2025 figure reflects the single RON95 price at the time. 

Vegetables Cheaper Than A Year Ago, But Chicken Costs More

Food at home rose 0.5% year-on-year, and vegetables were 1.8% cheaper than a year ago, led by garlic (down 15.5%), brinjal (down 10.9%), and big onions (down 9.6%). Food away from home rose 2.4%, easing slightly from May.

Meat prices rose 1.5% in June against 0.2% in May, driven largely by chicken, which rose 3.1% in a single month. Standard chicken averaged RM10.77 per kilogramme nationwide, up from RM10.48 in May. Egg prices rose 1.6% year-on-year after several months of decline.

Insurance Records The Steepest Increase Of All CPI Groups 

Insurance services rose 5.7% year-on-year, up from 4.9% in May, the steepest increase among all 13 CPI groups. This largely reflects the ongoing repricing of medical and health insurance premiums.

Electricity, gas, and other fuels stayed negative at -2.3%, helped by Sarawak’s 25% electricity bill discount running from April to December 2026, which benefits around 714,000 households. Do note that Peninsular Malaysia households using more than 600kWh a month saw a higher Automatic Fuel Adjustment surcharge of 2.59 sen/kWh in June, up from 1.38 sen/kWh in May, while those using 600kWh or less were unaffected.

How The June Figures Affect Your Budget

Seven states recorded inflation above the national rate, with Pahang (2.6%), Johor (2.5%), and Negeri Sembilan (2.5%) at the top, while Sarawak (0.4%) and Kelantan (0.8%) stayed well below it. Johor also had the highest food inflation at 2.8%, double the national figure.

For households earning below RM3,000, inflation held at 1.3%, below the national rate, partly because food at home and vegetables stayed cheap. Insurance premiums and food away from home are rising faster than headline inflation, and June’s chicken increase, if sustained, will add to grocery bills. If your medical insurance is up for renewal, compare plans before accepting the revised premium rather than renewing automatically.

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