How did transport costs impact overall inflation in June?

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Transport Costs Slowdown Tempered Malaysia's Overall Inflation in June 2026

Malaysia's overall inflation rate moderated in June 2026, rising by 1.9 per cent compared to 2.0 per cent in May 2026. This deceleration was primarily driven by a slowdown in the transport group's cost increases, which eased to 2.8 per cent in June from 3.8 per cent in the preceding month.
Transport Group Inflation Eased Significantly

The transport sector experienced a notable decrease in its inflation rate in June 2026. This group's costs had previously seen a substantial increase of 3.8 per cent in May 2026, but this figure dropped to 2.8 per cent by June 2026, directly contributing to the overall moderation of consumer prices.
Other Groups Showed Varied Inflationary Trends

While transport costs slowed, other groups exhibited different patterns. The personal care, social protection and miscellaneous goods and services group saw its inflation decrease to 3.4 per cent from 4.8 per cent, and education costs also slowed to 2.1 per cent from 2.2 per cent. Conversely, insurance and financial services costs rose to 5.7 per cent from 4.9 per cent, and restaurant and accommodation services recorded a slight increase to 2.6 per cent from 2.5 per cent.
Second Quarter Transport Costs Rose by 3.6 Per Cent

Looking at a broader timeframe, transport costs for the second quarter of 2026 registered an increase of 3.6 per cent. This quarterly figure indicates a sustained rise in transport expenses during the period, even as the month-on-month inflation for June showed a deceleration.

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