Malaysia Inflation Rate Exceeds Forecasts in July


Consumer prices in Malaysia rose 3.3 percent year-on-year in July of 2015, up from 2.5 percent in June and above market consensus. It is the fastest inflation since August 2014, as cost of most components increased during the fasting month of Ramadan and Eid-al-Fitr celebrations.

Year-on-year, upward price pressures came from: food & non-alcoholic beverages (+3.8 percent in July from +3.4 percent in June); alcoholic beverages & tobacco (+13.3 percent from +11.3 percent); clothing & footwear (+0.9 percent from +0.7 percent); furnishing, household equipment & routine maintenance (+3.9 percent from +3.2 percent); communication (+2.8 percent from +2.6 percent); recreation & culture (+1.9 percent from +1.7 percent); restaurants & hotels (+4.6 percent from +4.5 percent) and miscellaneous goods & services (+4.7 percent from +4.6 percent). Cost of transport also rose by 1.6 percent, following a 1.4 percent decline in June. While prices moderated for health (+4.8 percent from +5.0 percent) and education (+2.4 percent from +2.6 percent), cost remained stable for housing, water, electricity, gas and other fuels (+2.5 percent).

Among food & non-alcoholic beverages, customers had to pay more for: food (+3.8 percent in July from +3.5 percent in the preceding month); food at home (+3.6 percent from +3.2 percent); rice, bread & other cereals (+1.9 percent from +1.8 percent); fish & seafood (+4.1 percent from +3.2 percent); fruits (+4.8 percent from +3.0 percent); vegetables (+7.5 percent from +5.4 percent), food away from home (+4.2 percent from +3.8 percent) and food products (+5.1 percent from +4.8 percent). Cost remained flat for oils & fats (+0.7 percent) and coffee, tea, cocoa & non-alcoholic beverages (+3.2 percent). Prices moderated for meat (+2.2 percent from +3.0 percent) and sugar, jam, honey & chocolate (+2.0 percent from +2.1 percent).

On a monthly basis, consumer prices accelerated 0.8 percent, following a 0.6 percent rise in the preceding month. Price increases were reported for most categories except clothing & footwear. Cost of transport rose the most by 3.0 percent, followed food & alcoholic beverages (+0.8 percent), alcoholic beverages & tobacco (+1.8 percent) and furnishing, household equipment & routine maintenance (+0.4 percent); restaurants & hotels (+0.2 percent); miscellaneous goods & services (+0.2 percent); health (+0.1 percent); communiction (+0.1 percent); housing, water, electricity, gas & other fuels (+0.0 percent) and education (+0.0 percent).

During January to July 2015, consumer prices rose 1.7 percent.

Malaysia Inflation Rate Exceeds Forecasts in July


Statistics Malaysia l Rida Husna l rida@tradingeconomics.com
8/19/2015 9:43:32 AM