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Other groups reporting an increase in inflation across both states include transport, outfits and shoes, alcohol & tobacco, education, and food & beverage.
The Department of Statistics Malaysia has reported an increase in inflation rate both year-on-year and month-on-month in both Pahang and Terengganu.
Terengganu's inflation rate has risen to 1.6% year-on-year in January 2026, with main groups such as housing, water, electricity, gas & other fuel, transport, outfits and shoes, and self-care, social protection & a variety of goods & services, reporting rising inflation.
Month-on-month, the rate of inflation increased by 0.4%.
The breakdown of increases was as below:
- housing, water, electricity, gas & other fuel (0.3% to 2.4%)
- transport (-0.3% to +0.3%)
- clothes and shoes (0.2% to 0.4%)
- self-care, social protection & a variety of goods & services (1.0% to 1.1%)
In Pahang, the inflation rate increased to 2.1% year-on-year and 0.3% month-on-month for February 2026. The year-on-year increase was observed in several major groups, including self-care, social protection & a variety of goods & services, insurance & financial services, alcohol & tobacco, education, food & beverage, and housing, water, electricity, gas & other fuel.
Month-on-month, the rising inflation recorded was 0.3% in the following groups: housing, water, electricity, gas & other fuel, self-care, social protection & a variety of goods & services, education, and transportation.
The breakdown year-on-year was as below:
- self-care, social protection & a variety of goods & services (1.5% to 9.6%)
- insurance & financial services (0.0% to +7.6%)
- alcohol & tobacco (0.1% to 3.3%)
- education (0.9% to 2.7%)
- food & beverage (-0.3% to 2.3%)
- housing, water, electricity, gas & other fuel (1.5% to 2.3%)
In comparison with Malaysia as a whole, here is how the two states fared in terms of inflation in February 2026:
- Terengganu: 1.6%
- Pahang: 2.1%
- Malaysia: 1.4%
READ MORE: Asia’s economy projected to grow 4.5% in 2026, with global GDP share nearing 50%
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