Malaysia’s annual inflation rate rose to 1.9% in August 2026 from July’s four-month low, exceeding the 1.8% market forecast while remaining within Bank Negara’s 1.5%-2.5% target range. Food and beverages, the largest component of the consumer price index (CPI) basket at 29.8%, rose 1.9% year-on-year, the fastest pace since September 2025. Price growth accelerated across food, housing, transport, health, restaurants and accommodation services, and several other categories. Transport inflation increased to 2.0% from 1.4%, housing rose to 2.1% from 1.8%, and miscellaneous goods and services rose to 3.2% from 2.9%. Core inflation eased to 1.7%, its lowest level since December 2024, while consumer prices rose 0.3% month-on-month after remaining flat in July.