Malaysia's headline consumer price index slowed to 1.9% year-on-year in June, down from 2.0% in the previous month, according to data from the Statistics Department.
The moderation marks a reversal of the May acceleration, which had been fueled by higher electricity tariffs and rising vegetable prices.
The return to sub-2% inflation suggests that the temporary cost pressures identified by Bank Negara Malaysia last month have begun to dissipate.
The return to sub-2% inflation suggests that the temporary cost pressures identified by Bank Negara Malaysia last month have begun to dissipate.
With headline inflation remaining comfortably within the central bank's 1% to 3% target band, the data reinforces the view that price stability remains intact in Southeast Asia's fourth-largest economy.
The easing reduces near-term pressure on policymakers to consider tightening measures, although the central bank will likely continue to monitor core inflation trends and global commodity prices.
The June print arrives as regional peers also show signs of moderating price growth, with Bangladesh reporting a slowdown in food price inflation earlier this month.