Inflation to remain between 1.5% and 2.5% in 2026

PUTRAJAYA: The economy ministry expects Malaysia’s inflation rate to remain at between 1.5% and 2.5% throughout the year despite pressure from the energy supply crisis and global geopolitical uncertainties.

Economy minister Akmal Nasir said the government was committed to ensuring that inflation does not have a significant impact on the economy and cost of living.

He said the country’s latest inflation rate (April) stood at 1.9%, well below the global inflation forecast of around 4.3%.

“Our projection is for inflation to come in between 1.5% and 2.5% this year. That is a range we can manage, and it will not have a significant impact on the economy,” he told reporters after his ministry’s monthly gathering here.

“So far, we have managed to maintain inflation at around 1.9%, but… we continue to review official data and industry-level conditions so that intervention measures can be implemented early.”

He was responding to questions on expected inflationary pressures in the second quarter of the year following disruptions in global energy supplies, and their impact on the transportation and food sectors.

Akmal said current inflationary pressure was driven by rising costs of oil supply and the input goods needed to sustain economic activity.

He said the government was continuing various mitigation measures, including targeted fuel subsidy distribution, control of logistics costs through the subsidised diesel control system, as well as additional financing of RM5 billion under the Business Financing Guarantee Scheme and Bank Negara Malaysia facilities to support small businesses.