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THE nation’s annual inflation rate rose to 1.6 per cent in January 2026, with the consumer price index increasing to 135.7 from 133.6 a year earlier, according to the Department of Statistics Malaysia.
In a statement, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said price growth was driven primarily by four categories, led by personal care, social protection and miscellaneous goods and services, which rose 6.6 per cent year-on-year compared with 5.7 per cent in December 2025.
Education costs climbed 3.2 per cent, up from 2.8 per cent in the previous month, while housing, water, electricity, gas and other fuels increased 1.2 per cent against 0.9 per cent in December.
Recreation, sport and culture registered a 0.9 per cent rise, slightly higher than the 0.8 per cent recorded a month earlier.
Alcoholic beverages and tobacco, as well as food and beverages, maintained the same rate of increase as in December at 2.5 per cent and 1.5 per cent respectively.
The statistics department reported that around 62 per cent of monitored items, or 355 out of 573, recorded price increases.
Of these, 346 items, representing 97.5 per cent, rose by 10 per cent or less. Only nine items saw increases of more than 10 per cent in January, while 173 items declined in price and 45 remained unchanged.
Fuel prices showed a mixed trend. The average price of RON97 petrol fell to RM3.11 per litre from RM3.24 in December.
Diesel in Peninsular Malaysia averaged RM2.89 per litre, down from RM3.03 in December and RM3.06 in January 2025. In Sabah, Sarawak and Labuan, diesel remained unchanged at RM2.15 per litre.
“Meanwhile, the average price for diesel in Peninsular Malaysia was RM2.89 per litre compared to RM3.03 per litre in December 2025 (January 2025: RM3.06 per litre).
However, the average price of diesel for Sabah, Sarawak and Labuan remained at RM2.15 per litre.
“The average market price of RON95 increased to RM2.54 per litre (December 2025: RM2.62 per litre) compared to the subsidised price of RM1.99 per litre,” the department said.
Three states recorded inflation above the national rate of 1.6 per cent, namely Johor at 2.1 per cent, Negeri Sembilan at 2.0 per cent and Pahang at 1.9 per cent. Kelantan registered the lowest inflation at 0.3 per cent.
All states except Kelantan, which recorded a 0.3 per cent decline, posted higher inflation for food and beverages. Four states and one federal territory exceeded the national food and beverages rate of 1.5 per cent in January.
“The highest increase was recorded by Negeri Sembilan (3.2 per cent), followed by Pahang (2.6 per cent), Johor (2.5 per cent), Kuala Lumpur (2.0 per cent) and Melaka (1.7 per cent).
Meanwhile, other states showed increases below or equal to the national inflation of food and beverages,” Mohd Uzir said.
On a month-on-month basis, headline inflation edged up 0.1 per cent in January, slower than the 0.3 per cent recorded in December.
Increases were seen in personal care and related services at 1.0 per cent, education at 0.7 per cent, housing and utilities at 0.3 per cent, restaurant and accommodation services at 0.3 per cent and recreation at 0.2 per cent.
Transport costs fell 0.4 per cent from the previous month, while furnishings, household equipment and routine maintenance, as well as information and communication, each declined 0.1 per cent.
Regionally, Malaysia’s 1.6 per cent inflation rate was lower than Indonesia’s 3.6 per cent, Vietnam’s 2.5 per cent and South Korea’s 2.0 per cent, but higher than Thailand’s negative 0.7 per cent rate. - February 19, 2026