Malaysia Inflation Rate Eases To 5-Month Low Of 3.6% In June


Consumer prices in Malaysia rose 3.6 percent from a year earlier in June of 2017, compared to a 3.9 percent rise in the prior month and below market expectations of a 3.9 percent increase. It was the lowest inflation rate since January, mainly due to a slowdown in cost of food & non-alcoholic beverages and transport while inflation was steady for housing & utilities.

Year-on-year, prices increased at a slower pace for: food & non-alcoholic beverages (4.3 percent from 4.4 percent in May), alcoholic beverages & tobacco (0.1 percent from 0.2 percent), health (2.6 percent from 2.9 percent), transport (10.5 percent from 13.1 percent) and  miscellaneous goods & services (1.2 percent from 1.3 percent). Cost went up more than in a month earlier for: recreation services & culture (3.0 percent from 2.9 percent) and restaurant and hotels (2.5 percent from 2.3 percent). In contrast, cost fell for: clothing and footwear (-0.4 percent from -0.2 percent) and communication (-0.3 percent, the same as in May). Inflation was steady for: housing, water, electricity, gas & other fuels (2.2 percent); furnishing, household equipment & routine maintenance (2.1 percent) and education (1.7 percent). 

Among food & non-alcoholic beverages, customers had to pay more for most categories: food at home (4.2 percent from 4.3 percent in May); rice, bread & other cereals (0.8 percent, the same as in May), meat (4.2 percent from 5.1 percent); fish & seafood (7.2 percent from 7.7 percent); oils & fats (39.4 percent from 38.9 percent), fruits (3.7 percent from 3.3 percent); vegetables (1.8 percent from 0.8 percent); sugar, jam, honey, chocolate & confectionary (1.5 percent from 1.6 percent), food products (3.4 percent from 4.2 percent) and food away from home (4.8 percent from 4.9 percent). Meanwhile, prices of milk & eggs fell 1.2 percent (from -0.6 percent) and those of coffee, tea, cocoa & non-alcoholic beverages declined by 0.7 percent (from -0.6 percent).

Core consumer prices went up 2.5 percent year-on-year, slowing slightly from a 2.6 percent gain in the prior month.

On a monthly basis, consumer prices declined by 0.2 percent in June, the same pace as in May, due to falling prices for transport (-2.4 percent), clothing & footwear (-0.2 percent), and alcoholic beverages & tobacco (-0.1 percent).

Statistics Malaysia l Chusnul Ch Manan | chusnul@tradingeconomics.com
7/19/2017 8:59:33 AM