Why did transportation inflation ease to 3.8% from 4.1%?

Question

Accepted Answer

Transportation Inflation Moderated in May

Transportation inflation eased to 3.8 per cent in May, down from 4.1 per cent in the previous month. This moderation occurred despite varying fuel price adjustments and the overall inflation rate for Malaysia increasing to 2.0 per cent in May 2026.
Fuel Price Reductions

The average price of unleaded RON97 petrol decreased to RM4.81 per litre in May 2026, a reduction from RM5.06 in April. Similarly, the average price of diesel in Peninsular Malaysia fell to RM5.01 per litre from RM5.92 in the preceding month. These decreases in fuel costs likely contributed to the overall easing of transportation inflation.
Impact of Fuel Price Adjustments

While diesel prices in Sabah, Sarawak, and Labuan remained stable at RM2.15 per litre, the average market price for unleaded RON95 also saw a slight decrease to RM3.97 per litre from RM4.00 in April. These changes in fuel prices, particularly for RON97 and diesel in Peninsular Malaysia, directly influence the cost of transportation.
Broader Inflationary Context

The overall inflation rate in Malaysia for May 2026 stood at 2.0 per cent, with the Consumer Price Index (CPI) rising to 137.1 from 134.4 a year prior. Specific groups contributing to this rise included information and communication, food and beverages, housing, water, electricity, gas and other fuels, and recreation, sport and culture. The automatic fuel adjustment (AFA) rate also saw a revision, imposing a surcharge on domestic electricity users consuming over 600 kilowatt hours in Peninsular Malaysia, which impacted average electricity tariffs.

Reading history

Hide →

This history is cleared when the page is closed.

Why did transportation inflation ease to 3.8% from 4.1%?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends