March inflation rate up slower than expected

KUALA LUMPUR: Malaysia’s inflation rate, as measured by the Consumer Price Index (CPI), rose at a slower pace of 2.6% from a year ago, which was below a survey of a 3.4% rise.

The Statistics Department said on Wednesday the March CPI increased by 2.6% to 113.8 compared with 110.9 in the same month last year due to increases in ten major groups.

Among the major groups which recorded increases were the index for alcoholic beverages and tobacco by 22.7%; miscellaneous goods and services (+5.1% ); food & non-alcoholic beverages (+5%); furnishing, household equipment and routine household maintenance (+4.7%); restaurants and hotels (+4.5%); and health (+4.2% ).

The department said in addition, the overall index was also influenced by the decrease in transport group by 8.2%.

On a monthly basis, CPI for March 2016 decreased 0.6% to 113.8 from 114.5. CPI for the period January to March in 2016 registered an increase of 3.4% as compared to the same period last year.

The increase of 3.4% per cent in the CPI for period January to March 2016 was led by increases in the main groups with high expenditure percentages: food and non-alcoholic beverages (+4.6%) and housing, water, electricity, gas and other fuels (+3%). other increases were alcoholic beverages and tobacco (+22.6%); miscellaneous goods and services (+5.3%); health (+4.5%); restaurants and hotels (+4.5% ) and furnishing, household equipment and routine household maintenance (+4.5%).

The Statistics Department said core inflation, which excluded most volatile items of fresh food, as well as administered prices of goods and services rose 3.6% in March 2016 compared to the same period of the previous year.

Among factors contributing to a higher core rate were price increases for miscellaneous goods and services (+5.1); furnishing, household equipment and routine household maintenance (+4.7% ); restaurants and hotels (+4.5%); transport (+4.4%); food and non-alcoholic beverages (+4.3%) and health (+4.2% ).