Bank Negara Projects Stable Inflation Between 1.5% and 2.5% for 2026

Bank Negara Malaysia expects headline inflation to remain moderate throughout 2026, with the central bank projecting an average range of 1.5% to 2.5%. This outlook was shared during the bank’s second-quarter 2026 gross domestic product briefing held today.

BNM Governor Datuk Seri Abdul Rasheed Ghaffour stated that these projections account for evolving external cost pressures. Specifically, the central bank is monitoring the impact of the ongoing conflict in the Middle East, which continues to pose potential risks to the global economic environment.

According to the original publisher, the central bank maintains a cautious but stable view on the domestic price outlook. Despite the external challenges originating from geopolitical tensions, the projected range suggests that policy makers anticipate that domestic price growth will stay within a controlled and predictable corridor over the coming year.

For Malaysian households and businesses, these figures provide a necessary benchmark for financial planning. As inflation directly impacts the purchasing power of consumers and the operational costs of firms, a stable inflation forecast of under 2.5% indicates that the central bank expects to see relative consistency in the cost of living and business expenses for the foreseeable future.