KUALA LUMPUR, Aug 14 — Malaysia’s headline inflation rose to 1.9 per cent in the second quarter of 2026 from 1.6 per cent in the preceding quarter, while core inflation moderated to 1.9 per cent from 2.1 per cent, Bank Negara Malaysia (BNM) said today.

BNM Governor Datuk Seri Abdul Rasheed Ghaffour said higher input costs had so far seen limited pass through to consumer prices.

He noted that almost 80 per cent of firms are facing higher cost pressures, but only about half indicated they may pass these costs on to consumers, as demand remains weak.

The central bank’s figures showed producer cost pressures were concentrated at the upstream stage, with crude materials prices rising 27.5 per cent and intermediate inputs 3.7 per cent, while finished goods prices increased 1.4 per cent.

Headline inflation is projected to average 1.5 to 2.5 per cent in 2026, with BNM saying the overall impact of external cost pressures is expected to remain contained.

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