What specific retail sectors will see the next price increases?

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Retailers Anticipate Further Price Hikes Across Multiple Sectors

Malaysian consumers are braced for additional retail price increases commencing in June, as indicated by industry reports. While the precise list of new sectors facing these hikes has not been detailed, the existing "fuel effect" has already driven up costs for groceries, dining, car repairs, housing, medical services, education, and air travel.
Broader Economic Pressures Intensify

The Malaysian economy has been experiencing a deteriorating inflationary environment throughout the year. Inflation recorded a 1.6 per cent rise in the first quarter of 2026, escalating to 1.9 per cent in April alone. Key contributors to this spike include significant increases in insurance and financial services (4.9 per cent), personal care and miscellaneous services (4.8 per cent), and transport costs (4.1 per cent). Even dining out at restaurants and cafes saw a 2.6 per cent price increase.
Geopolitical Conflict Fuels Cost Increases

The underlying driver for the current inflationary pressures is the escalation of the conflict between the US, Israel, and Iran, which has significantly impacted global fuel prices. Between early March and early June, unsubsidised RON95 prices surged by 39 per cent to RM3.72 per litre, while diesel prices in Peninsular Malaysia rose by 45 per cent to RM4.67. These fuel cost increases are cascading through the economy, affecting a wide array of essential goods and services.
Retail Sales Forecast Downgraded Amidst Consumer Strain

The impact of these rising costs on consumer purchasing power has led to a revision of the retail sales growth forecast. Retail Group Malaysia (RGM) has lowered its full-year retail sales growth projection from 4.0 per cent to 3.8 per cent. This adjustment reflects the challenges retailers face in balancing rising input costs with consumer affordability, with the expectation that many will need to pass these costs on. The Malaysian government has also revised its annual inflation forecast upwards, now anticipating a range of 1.5 per cent to 2.5 per cent.

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