Malaysia Inflation Rate Eases to 1.4% in July

Malaysia's annual inflation rate edged down to 1.4 percent in July 2019 from a 13-month high of 1.5 percent in the previous month and below market expectations of 1.5 percent. Housing & utilities inflation slowed while transport prices continued to drop.
Department of Statistics, Malaysia l Chusnul Ch Manan| 8/14/2019 11:30:16 AM
Prices increased softer for both housing, water, electricity, gas, & other fuels (1.9 percent vs 2.3 percent in June) and recreation services & culture (2.4 percent vs 2.7 percent). Meantime, inflation was steady for education (at 1.4 percent) and communication (at 2.1 percent). In addition, cost continued to decline for transport (-1.9 percent vs -2.1 percent) and clothing and footwear (-1.1 percent vs -0.7 percent).

On the other hand, food & non-alcoholic beverages increased by 2.4 percent year-on-year in July, compared to a 2.3 percent rise in June, boosted by higher costs of: milk & eggs (2.6 percent vs 2.5 percent in June); fruits (2.5 percent vs 1.1 percent); food away from home (4.4 percent vs 4.2 percent). On the other hand, cost rose slower for: fish & seafood (0.4 percent vs 0.5 percent); vegetables (4.7 percent vs 5.2 percent); rice, bread & other cereals (0.7 percent vs 0.8 percent); while food products inflation was steady (at 1.5 percent). Meanwhile, deflation eased for meat (-1.6 percent vs -1.8 percent); oils & fats (-0.2 percent vs -0.3 percent); and sugar, jam, honey (-0.1 percent vs -0.4 percent).

Also, upward pressure came from: restaurants and hotels (1.7 percent vs 1.6 percent); furnishing, household equipment & routine maintenance (3.3 percent vs 3.1 percent); alcoholic beverages & tobacco (2.3 percent vs 2.1 percent); miscellaneous goods & services (1.8 percent vs 1.4 percent) and health (1.3 percent vs 1.2 percent).

Core consumer prices, which exclude most volatile items of fresh food as well as administered prices of goods and services, rose 2.0 percent in July, the most since January last year and compared to a 1.9 percent gain in June.

On a monthly basis, consumer prices inched up 0.1 percent in July, following a flat reading in June.

Malaysia Inflation Rate Eases to 1.4% in July