MBSB Investment Bank Maintains Malaysia's 2026 Inflation Forecast At 2.0 Pct

KUALA LUMPUR, Sept 18 (Bernama) -- MBSB Investment Bank Bhd (MBSB IB) maintains Malaysia headline inflation forecast to grow by 2.0 per cent for 2026 from 1.4 per cent in 2025, reflecting still-contained year-to-date inflation despite persistent upside risks.

The investment bank said in a note today that while domestic demand remains resilient and core inflation is stable, elevated producer prices, volatile global energy costs, supply-chain disruptions and higher fuel and fertiliser prices could pass through to consumer prices in the coming months.

“Government price controls and targeted fuel subsidies should partly cushion these pressures, while Bank Negara Malaysia’s balanced policy stance should continue to support price stability without unduly constraining domestic demand.

“Nevertheless, renewed geopolitical disruptions could push inflation higher through their effects on international trade and global commodity supplies,” it said.

Earlier, the Department of Statistics Malaysia (DoSM) announced that Malaysia’s inflation increased 1.9 per cent in August 2026 from 1.8 per cent in the previous month, with the Consumer Price Index rising to 137.5 points in July from 134.9 a year earlier.

DoSM said the transport group drove the increase, rising 2.0 per cent compared to 1.4 per cent in July 2026, while inflation in personal care, social protection and miscellaneous goods and services rose 3.2 per cent in August compared to 2.9 per cent in July.

-- BERNAMA