Malaysia's inflation increased by 1.8 per cent in February with the index points recorded at 132.1 against 129.8 a year earlier, according to the Statistics Department.

Chief statistician Mohd Uzir Mahidin said the increase in inflation was driven by housing, water, electricity, gas and other fuels (2.7 percent); recreation, sports and culture (1.6 percent) and transport (1.2 percent).