Inflation rises 2.0 percent in May

Malaysia experienced a 2.0% inflation rate in May 2026, as indicated by the Department of Statistics Malaysia (DOSM). The Consumer Price Index (CPI) climbed to 137.1 compared to 134.4 in the same month of the previous year.

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At the same time, inflation moderated for transport (3.8 percent), restaurants and accommodation services (2.5 percent), education (2.2 percent) and health (1.2 percent).

Several categories saw significant price increases. Information and communication services recorded a 2.1% rise, followed by food and beverages at 1.4%. Housing, water, electricity, gas, and other fuels increased by 1.2%, while recreation, sports, and culture saw a 1.1% rise. Alcohol and tobacco products registered a 2.8% increase.

Conversely, inflation moderated in sectors such as transportation (3.8%), restaurants and accommodation services (2.5%), education (2.2%), and health (1.2%). Insurance and financial services, along with personal care and miscellaneous goods and services, remained unchanged in terms of inflation rate. The clothing and footwear category saw a slight decrease of 0.1%.

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However, vegetables and milk, other dairy products and eggs recorded a decrease.

Detailed analysis of food prices revealed that food and beverages, which constitute 29.8% of the CPI weight, increased by 1.4% in May 2026, up from 1.2% in April. Food consumed outside the home rose by 2.5%, slightly down from 2.6% in April, while food at home increased by 0.3%. Within food at home, prices for fish, seafood, sugar, sweets, and desserts increased, while vegetables, milk, dairy products, and eggs saw price reductions. The price of fresh chicken, a major component of meat prices, decreased significantly by 2.4% compared to a 0.8% decrease in the previous month.

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Fresh chicken, which is the largest component with 32.6 percent in the meat spending class, recorded a sharper decrease to negative 2.4 percent compared to negative 0.8 percent in the previous month.