Malaysia’s inflation rate picked up to 1.7% in March 2026, up from 1.4% in February, according to the Department of Statistics Malaysia (DOSM). Fuel prices were the biggest reason for the jump.
The Consumer Price Index rose to 137.0 points in March 2026, compared with 134.7 points a year earlier. On a month-on-month basis, prices rose 0.3%, slightly faster than the 0.2% recorded in February. Almost every spending category increased, with Clothing & Footwear the only group to post a decline (negative 0.1%).
For the first quarter of 2026 as a whole, inflation averaged 1.6%, up from 1.3% in the final quarter of 2025.
Fuel Prices Drove The March Jump
Transport swung from negative 0.7% in February to positive 1.6% in March. Fuel got more expensive across the board.
The average price of diesel in Peninsular Malaysia rose to RM4.12 per litre, up from RM3.08 a year ago. RON97 petrol climbed to RM4.03 per litre, compared with RM3.33 in March 2025. Non-subsidised RON95 rose to RM3.16 per litre. Subsidised RON95 (BUDI95) stayed at RM1.99 per litre, but only drivers who qualified for the targeted subsidy benefited from that price.
The reason fuel prices jumped is global crude oil prices, which directly affect what you pay at the pump. Crude oil averaged US$103.69 (approximately RM415) per barrel in March, up 42.9% from US$72.57 (approximately RM290) a year earlier. When crude oil prices rise, local fuel prices follow. If crude oil prices ease back toward the US$70 (approximately RM280) range as seen in late 2025, pump prices should settle too. If it stays above US$100 (approximately RM400), expect fuel costs to remain high.
If you drive a car that runs on RON97 or diesel, you would have felt this at the pump. A full tank of RON97 in a standard sedan (around 45 litres) cost roughly RM181 in March, compared with about RM150 a year ago.
Food Costs Eased Slightly
Food and beverages, which make up 29.8% of the overall CPI basket, rose 1.1% year on year, slower than the 1.3% increase in February.
Eating out remained more expensive than a year ago, with food away from home up 2.3%. Nasi berlauk rose 3.0%, while cooked beef dishes climbed 4.3%. If you eat out regularly, those increases will show up in your monthly spending.
Food at home barely moved, up just 0.1% year on year. Vegetables continued to get cheaper, falling 4.9% compared with a year ago. Big onions dropped 18.6%, garlic fell 16.2%, and tomatoes declined 15.1%.
Chicken prices also eased. Standard chicken averaged RM10.59 per kilogramme nationally in March, down from RM10.75 in February. In Peninsular Malaysia, the average was RM9.84 per kilogramme, the same as a year ago.
Fish and seafood prices rose 1.5%, a moderation from the 2.5% increase recorded in February. Eggs edged up 2.1%, though dairy products overall were flat compared with a year earlier.
Insurance, Personal Care, And Education Still Rising
Personal care, social protection, and miscellaneous goods and services recorded the steepest increase at 7.0%, up from 6.9% in February. Insurance and financial services rose 4.9%, compared with 4.7% a month earlier.
Education costs climbed 2.5%, a slight easing from February’s 2.8%. Restaurant and accommodation services rose 2.6%.
These are all recurring costs. Unlike a one-off dip in vegetable prices, they compound month after month.
Housing Costs Held Steady
Housing, water, electricity, gas, and other fuels increased 1.2% year on year, a slight uptick from 1.1% in February.
Rental, maintenance, and water supply costs all rose. The water supply subgroup posted a 6.8% increase, while home maintenance and security costs climbed 3.3%. Actual rental for housing went up 1.5%.
Electricity costs have now fallen for nine consecutive months, down 4.0% in March. The Automatic Fuel Adjustment (AFA) surcharge for domestic users in Peninsular Malaysia who consume more than 600 kilowatt-hours per month was reduced to a rebate of 2.15 sen per kWh, compared with 2.77 sen per kWh in February. If your household uses 600 kWh or less, your electricity bill was unaffected.
Pahang, Kuala Lumpur, And Negeri Sembilan Above The National Average
Eight states recorded inflation above the national rate of 1.7%. Pahang posted the highest at 2.5%, followed by Labuan (2.4%), Negeri Sembilan (2.2%), Kuala Lumpur (2.2%), Sabah (2.1%), Johor (2.0%), Kedah (1.9%), and Pulau Pinang (1.8%).
Kelantan recorded the lowest inflation at 0.7%, while Perak and Sarawak came in at 1.1% and 1.2% respectively.
For food and beverages specifically, Negeri Sembilan saw the highest increase at 2.7%, while Kelantan was the only state where food prices actually fell (negative 0.7%).
Lower-Income Households Felt Less Pressure
Inflation for households earning below RM3,000 per month was 1.2% in March, lower than the national rate of 1.7%. Lower-income households spend proportionally less on categories that saw the steepest increases, such as insurance and financial services.
Food inflation for this group was just 0.7%, partly because cheaper vegetables and stable chicken prices kept grocery bills in check.
Not Everything Is Going Up
Standard chicken dropped to RM10.59 per kilogramme in March from RM10.75 in February. Vegetables have now been falling for several months, with big onions, garlic, and tomatoes all down by double digits compared with a year ago. Electricity bills are also lower for households using more than 600 kWh per month.
Grocery prices overall remain flat or cheaper. If you are looking for ways to make that count, check out our guide to managing your grocery spending.
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The post DOSM: March Inflation Hits 1.7% On Fuel Spike, But Grocery Prices Hold Steady appeared first on RinggitPlus.