Malaysia's headline consumer price index (CPI) rose 1.8% year over year in July, according to data from the Department of Statistics Malaysia on Monday.
The reading compared with the 1.9% expansion recorded in June, missing the Trading Economics forecast of 2.1%. It also marked the softest print in four months.
The department attributed the slowdown to transport inflation, which decelerated to 1.4% from 2.8%.
Core inflation, which excludes volatile food and energy items, also eased to 1.8% from 1.9% in the previous month.
On a month-over-month basis, Malaysia's headline CPI remained flat for a second straight month.