KUALA LUMPUR, May 19 (Xinhua) -- Malaysia's inflation accelerated for a second consecutive month to an 18-month high of 1.9 percent year-on-year in April, up from 1.7 percent in March, amid the continued impact of cost pressures linked to the Middle East conflict, official data showed on Tuesday.
The increase was mainly driven by the transport group, which rose 4.1 percent in April compared with 1.6 percent in March, amid higher energy prices, the Department of Statistics Malaysia (DOSM) said in a statement.
"Inflation dynamics remain aligned with our view that supply-driven pressures from the Middle East conflict will intensify in the coming months," UOB Economics and Markets Research said in a note on Tuesday.
With no resolution to the conflict or reopening of the Strait of Hormuz in sight, and oil and key raw material supplies nearing critical levels by the end of June, the research house said cost pressures are likely to persist and gradually pass through to consumer prices.
"Barring any changes to fuel subsidy policies, inflation is forecast to exceed 2 percent from May onward, bringing full-year 2026 inflation to an average of 2 percent," it added.
Malaysia's inflation rose 1.4 percent in 2025. Its central bank has projected this year's inflation rate at between 1.5 percent and 2.5 percent.
Meanwhile, RHB Investment Bank revised its 2026 headline inflation forecast upward to 2.1 percent from 1.8 percent.
"Escalating geopolitical tensions are pushing up global energy prices, with potential pass-through to inflation if crude oil prices remain elevated," the research house said in a note on Tuesday. ■