Malaysia Inflation Rate Steady at 1.8% in June


In June of 2013, the annual inflation rate remained unchanged at 1.8 percent, the same rate recorded in the previous month, as government subsidies prevented higher food price increases ahead of the Muslim month of Ramadan.

In June of 2013, prices of food and non-alcoholic beverages were the main contributors to the overall growth, and rose 3.2 percent yoy, down from 3.5 percent in May. Prices for vegetables recorded the highest increase (+ 6.9 percent), followed by cost of sugar, jam, honey and chocolate (+ 5 percent) and milk and eggs (+ 4 percent). In contrast, cost of oils and fat declined 0.5 percent yoy.

In the same period, prices for housing, water, electricity, gas and other fuels increased to an annual rate of 2 percent, the same rate recorded in May. Although accounting for less than 5 percent of the overall CPI, prices of alcoholic beverages and tobacco recorded the highest annual increase in June (+ 4.2 percent). 

Cost of clothing and footwear, communication and recreation and culture decreased in June. 

On a monthly basis, the inflation rate eased to 0.1 percent in June, from 0.3 percent in May. Increases were for main groups alcoholic beverages and tobacco (+ 2.2 percent); food and non-alcoholic beverages (+ 0.4 percent); furnishings, household equipment and routine household maintenance (+ 0.2 percent); education and restaurants and Hotels by 0.1 percent respectively. On the other hand, decreases were for transport (- 0.4 per cent); clothing and footwear; health and miscellaneous goods and services by 0.2 percent respectively and communication (- 0.1 percent). The indices for housing, water, electricity, gas and other fuels and recreation services and culture remained unchanged.

Malaysia Inflation Rate Steady at 1.8% in June


Joana Taborda | joana.taborda@tradingeconomics.com
7/19/2013 10:33:18 AM