Malaysia's annual inflation rate slowed to 1.8% in July 2026 from 1.9% in June, marking the lowest reading since March and keeping price growth within Bank Negara Malaysia's 1.5% to 2.5% target range. The moderation was driven by slower increases across most categories, including transport, restaurants and accommodation services, insurance and financial services, alcoholic beverages and tobacco, furnishings and household equipment, health, education, and miscellaneous goods and services. At the same time, inflation accelerated for food and beverages to 1.8% from 1.4%, alongside faster price growth in housing and utilities, information and communication, and recreation and culture. Core inflation, which excludes fuel, also edged down to 1.8% from 1.9%, while consumer prices were flat on the month.