Tobacco Tax Impact Kicks In — Malaysia’s Inflation Rises to 1.4% in November

(Kuala Lumpur, 22nd) Malaysia’s Department of Statistics reported that the Consumer Price Index (CPI) rose 1.4% year-on-year in November to 135.1 points. Headline inflation was unchanged month-on-month, while core inflation also remained steady at 2.2% year-on-year.

The department said the November uptick was mainly driven by a sharp acceleration in the “Alcoholic Beverages & Tobacco” category, which rose 2.4% year-on-year—well above October’s 0.3%. The increase reflects the impact of the higher cigarette excise duty announced in Budget 2026, effective from November (an additional 2 sen per stick).

Education inflation rose 2.6%, while transport increased slightly by 0.2%. Meanwhile, inflation moderated compared with the previous month in several categories, including: Personal Care, Social Protection & Miscellaneous Goods and Services (up 5.6%); Housing, Water, Electricity, Gas and Other Fuels (up 0.7%); and Furnishings, Household Equipment & Routine Household Maintenance (up 0.2%).

Inflation in Insurance and Financial Services (up 5.6%), Restaurants and Accommodation Services (up 3.4%), Health (up 1.5%), and Recreation, Sport and Culture (up 1.2%) was unchanged from the previous month. The Information & Communication and Clothing & Footwear categories remained in negative territory at -1.3% and -0.1%, respectively.

61% of items rose in price

Chief Statistician Datuk Seri Mohd Uzir Mahidin said that among 573 items tracked, 350 items (61.1%) recorded price increases, 184 items (32.1%) declined, and 39 were unchanged. Of the items that rose, 342 (97.7%) increased by 10% or less, while only eight items rose by more than 10%.

Food inflation steady; dining out runs hotter

The Food & Beverages group—the largest CPI component at 29.8%—rose 1.5% year-on-year, unchanged from October. Within the group, inflation for dining out climbed 2.8%, while inflation for eating at home edged up only 0.1%.

Meat inflation rose 0.7%, driven mainly by pork (+3.4%) and locally produced mutton (+3.2%).

Chicken prices rebound; vegetables remain deflationary

Chicken inflation rebounded to +1.4% in November from -1.3% in October. Average national chicken prices rose to RM10.57 per kg from RM10.35 per kg, while Peninsular Malaysia’s average increased to RM9.87 per kg from RM9.59 per kg.

By contrast, vegetable inflation continued to fall (-6.1%), led by cauliflower (-10.2%) and mustard greens (-9.6%). Milk, other dairy products and eggs also declined by 1%.

State and regional comparison

Four states recorded inflation above the national average: Johor (+1.9%), Negeri Sembilan (+1.9%), Kuala Lumpur (+1.7%), and Selangor (+1.6%). Kelantan posted the lowest inflation rate at +0.2%.

Regionally, Malaysia’s November inflation was lower than Vietnam (+3.6%), Indonesia (+2.7%), and South Korea (+2.4%), but higher than China (+0.7%) and Thailand (-0.5%).