The Department of Statistics Malaysia (DOSM) says prices in May 2026 were 2.0% higher than a year ago. In April the figure was 1.9%. So the cost of living went up a little faster last month.

What The 2.0% Number Means

Inflation is the speed at which prices rise. A 2.0% rate means that, on average, things cost 2.0% more than they did in May last year. If you spent RM2,000 a month back then, the same shopping now costs about RM2,040. It sounds small, but it adds up over the year, and for a working household it shows up most in the food bill and the cost of getting to work.

What Got More Expensive

Eating out went up more than cooking at home. Food bought outside the home cost 2.5% more than a year ago, while food cooked at home rose just 0.3%. A plate of fried rice and a piece of roti canai both cost more than last year, though those rises have started to slow.

Water bills went up too, with water supply charges 6.8% higher. Bus and train fares rose 6.8%. Insurance and financial services rose 4.9%, and personal care products and services rose 4.8%.

DOSM tracks lower-income households on their own. For those earning under RM3,000 a month, prices rose 1.3% in May, slower than the national 2.0%. Even so, eating out cost this group 3.1% more than a year ago, so a warung lunch still costs more than it did last year.

What Got Cheaper

Not everything went up. A kilo of standard chicken averaged RM10.48 in May, down from RM10.63 a year ago. Eggs were 1.0% cheaper, and vegetables as a group fell 1.5%, with garlic, onions and tomatoes among the biggest drops.

Subsidised RON95 petrol held at RM1.99 a litre, the same price it has kept for months, which holds down fuel costs for most drivers. Diesel and premium RON97 cost far more than a year ago, so anyone running a diesel vehicle has felt the difference.

What Inflation Does To Your Savings

If your money sits in an account that pays less than 2.0% a year, it is slowly buying less. At 2.0% inflation, RM10,000 left in a near-zero account loses about RM200 of buying power over a year, even though the balance on your statement looks the same. A fixed deposit or a higher-interest savings account that pays at least the inflation rate helps your money hold its value.

What You Can Do

You cannot control prices, but you can choose where your money goes. Cooking at home more often costs less than the 2.5% rise in eating out. If your insurance renewal went up, compare a few policies before you renew rather than letting it roll over. And if your savings earn almost nothing, moving them to an account that pays more is one of the few things in your control.

Inflation at 2.0% is far from the worst Malaysia has seen, and some everyday items cost less than last year. But small increases add up, so the months ahead are a good time to keep an eye on the bills that rose most, and to check that your savings earn at least as much as prices are rising.

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Figures are from the Consumer Price Index, May 2026, published by the Department of Statistics Malaysia (DOSM).

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